The 911 Solution for Our Economy
What are the huge gains we can enjoy?
We pay $1.7 trillion per year for benefits and debt service which would only require a contribution of $184 billion per
year if we switch to the business model that only spends one dollar to do a one-dollar job!
With the $1.5 trillion of annual savings from curing this waste, we could:
If you are at all skeptical that this solution can deliver as advertised, please go to the Economic Solution tab below
and start with Chronology of the Solution and EXECUTIVE SUMMARY for the SAVVY. Those two will cure your
skepticism and then you can peruse the details at your leisure.
The other tabs take you to guides for similar Win-Win solutions to other challenges, plus the explanation of why we
call this website The 469 Express.
In a retirement plan, compound interest normally produces six dollars of accumulated balance at retirement for every dollar we put in during our working career.
Today's business model for Social Security and Medicare doesn't use compound interest, so we put in our one dollar ... and then we have to put in five more to make up for the lack of compound interest.
On top of that, we pay three more in interest on the national debt ... which we would not have had to borrow if we had had the first five available to pay cash for what we wanted the government to do.
So the NINE comes from ... the ONE it takes to do the retirement-plan job to provide our Social Security and Medicare benefits, plus FIVE more to make up for the lack of compound interest, plus THREE more in interest on the national debt.
We've been running this massive retirement plan for 70 years without using compound interest, and it's killing our economy. An easy way to see this is to put it in the context of a banking business model. We've been paying out 5% on our liabilities, earning zero on our assets, and making up the difference by doubling the tax rate on each generation.
We earn zero on our assets because there are no real assets - Congress takes all the money out of the Trust Funds and spends it. Yes, the Trust Funds hold IOU's from Congress ... but where will Congress get the CASH to repay these IOU's? (answer: by doubling the tax rate on our kids and grandkids; the Trustees Reports forecast that these programs will require a payroll tax rate of 57% by 2080-85) Does that really strike you as an asset in your retirement plan, that Congress has promised to double the taxes on your kids and grandkids?
We've been running this business with a negative margin, and it has done what a negative margin always does to a business: drain the cash out of the business, drain the owners' personal assets as you put more capital in trying to keep the business going, and go deeply into debt. Do you recognize that description? Sound like any economy you're familiar with?
When a business flips from a negative margin to a positive margin, it enjoys huge gains. The business generates positive cash flow and pays down its debt, pays bonuses to its workers, and builds up its capital.
That's what we can do with the 911 solution for our economy: pay off our debt, boost our retirement benefits and build up our capital. The rest of the website shows how we switch and what huge gains we can enjoy.