http://www.project10tothe100.com/
10. What one sentence best describes your idea?
This idea would promote economic opportunity by refinancing the national debt to provide citizens with a safe and effective savings plan.
11. Describe you idea in more depth.
This idea was originally designed to either supplement or replace the traditional employer based pension plan. It will allow workers greater flexibility to change jobs while still keeping the same savings plan. It will also help eliminate the economic uncertainty in investing for the future while providing protection from a loss of pension due to corporate layoffs, scandals, or bankruptcies.
The theory behind this savings plan is to refinance our national debt. When a person refinances a typical loan, the goal is usually to attain a lower interest rate. However, the goal of this idea is to attain a different distribution of ownership. Taxpayers currently forfeit hundreds of billions of dollars each year to pay the interest on the national debt, and this money provides no benefit and is essentially lost to us. This plan will begin to slowly refinance those parts of the national debt that are issued at the highest interest rates, transferring ownership from wealthy bond holders and foreign central banks to average citizens. Freedom isn't free, but we the people should be the ones earning the interest.
12. What problem or issue does your idea address?
For fiscal year 2008, the national debt increased by more than $1 trillion, and American taxpayers paid over $451 billion in interest expense on the over $10 trillion in total debt outstanding. The government currently finances most of these deficits through the sale of bonds at auction, borrowing money from investors who might otherwise lend this capital to businesses and individuals to promote productive economic activity. Meanwhile, our country currently has a very low personal savings rate, and the average American is saving less than 3% of personal income. This savings problem is worsened by the fact that bank accounts are paying very low interest rates, and the stock market has been extremely volatile. The government needs to find stable long-term financing for the national debt that does not drain money from the credit markets, and the American people need an effective savings plan.
13. If your idea were to become a reality, who would benefit the most and how?
Everyone would benefit if we were able to refinance the national debt with individual savings accounts. The government would find stable long-term financing for our national debt, without the need to drain money from the credit markets. Businesses and individuals seeking credit would benefit, because when the government stops competing for this available capital, it may help lower interest rates for business loans. Also, the government would no longer need to borrow from foreign central banks, which means that instead of buying our bonds, these foreign countries could use their dollar assets to buy our goods and services, thus strengthening our economy. American citizens would benefit the most, because we would have the ability to save for our future while watching our savings grow. We would also have an investment in the country and a greater sense of responsibility and ownership in our democracy.
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