Thursday, September 8, 2011


From an earlier post in May when I wrote about QE2:

''Since the total cost of QE2 came to $6 billion, that works out to $850,000 per job created. I figure I could retire quite comfortably on about a third of that amount. So if the government had simply offered early retirement to people like myself, they could have easily freed up 2,100,000 jobs. Now if you had 2,100,000 job openings and 2,100,000 new retirees with adequately funded retirements, not only would you create additional jobs to support the needs of the retirees, but income tax revenues would have increased since retirees would still be paying income taxes, and the government would have recouped the money spent on early retirements in the form of income taxes. Given the fact that new hires are usually hired on at a lower pay scale than seasoned employees, it would have had the added effect of keeping inflation in check by lowering payrolls and reducing overall costs for businesses. Private corporations and state governments do this all the time, offering early retirement as a way to reduce payroll costs. Why not apply the same method on a national level if you're going to spend the money anyway? Something our political leaders may need to look into.''

Corporations and state governments do early retirement buyouts, why not the Federal Government?  In the case above, instead of creating just a few hundred thousand jobs, for the same tax dollars they could free up a couple of million jobs and create additional jobs to meet the needs of an additional 2 million retirees.  Granted, they're not talking about spending an additional $6 Billion, but the principle is the same. 

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