New Plan Cuts Retirement Cost from Domestic Products
Pension plans and medical costs for retired employees have put American made products at a disadvantage to foreign competition not saddled with those costs. Today a new plan has been announced to eliminate the need for the private sector to fund these retirement costs. The plan will be a major ingredient in the future profitability of businesses manufacturing in the USA.
CHATSWORTH, CA (general release) August 27, 2007 Dick McDonald has authored a book released today free of charge over the internet that will free corporations from their need to supplement their employees’ Social Security and Medicare benefits with private plans like 401(k)s.
During 2006, $467 Billion was spent by corporations as their share of their employee’s payroll taxes. These funds were sent by the employers to the government and the government immediately spent those funds on the 2006 Social Security and Medicare benefits paid to retired and disabled Americans.
Corporate America gets no public praise for this enormous financial contribution. In fact, the public perception is that corporations should set up additional retirement plans at their own expense to supplement the retirement benefits their own employees get from the government.
McDonald points out that were that same $467 billion invested each year for the 40-year working life of their employees in indexed stocks like the S&P 500 and received the average rate of return that it has experienced since 1911, the investment would amount to $206 trillion or $1.2 million for every one of the 170 million households in America.
As the average American household ends up with no asset whatsoever after 40 years of corporate America investing such enormous sums under the present Social Security and Medicare system, corporate America should support the repeal of the method of financing the old systems and replace it with one based on accumulating funds for individual Americans in personal investment accounts.
By supporting this change, retirement security would be switched from a private and public sector responsibility to the individual American citizen who with a multi-million dollar nest egg could afford an affluent retirement and the best medical care on the planet.
Dick McDonald has developed an entire theory of economics called “Rise Up” that does for the poor and middle-class what “Trickle Down” has done for the rich. Reducing the retirement costs from the corporate P&L is just one small aspect of his plan but one bearing a significant effect on the hot topics of American outsourcing, and global competitiveness.
Get Dick McDonald's new e-book "Make the Poor Rich and America Wealthier" FREE by clicking www.riseupeconomy.com/freebookrequest.html. There he proves how easy it will be to transition to personal accounts and the many benefits it will generate.
The Ownership Society Institute has been formed to promote the Rise Up Theory of Economics. You can help by contributing to the cause and spreading the word.
Dick McDonald, Managing Director
Ownership Society Institute
9662 Jumilla Avenue
Chatsworth, CA 91311-5610