How to Create Jobs

Dear Grace Meng:

Congratulate that you become a senator. In the new position you should not only care about the benefits of American Chinese. You should propose good ideas to solve the Americas problems. That will actually make the American Chinese look great.
Here is a proposal for creating jobs. It recommends people to share jobs, learn how to obtain the maximum happiness with the least spending. It doesnít encourage high GDP and high consumption because resources on the Earth are limited.
The basic idea of this proposal is to encourage people to retire earlier, have less income but get more time to enjoy lives in simply ways. We expect Government to play important role in this process.

Let explain my idea by answering several questions.

Why is it so difficult to bring the unemployment rate down?

It is because in the age of free trade, we actually are dealing with the unemployment problem for the whole world. As a matter of fact, since 1975, the population on Earth has increased 75%. Since it has no way to increase 75% job positions the unemployment rate thus is always high.

Can stimulating consumption create job?

No. In the age of free trade, business orders that we create through stimulating consumption might just go overseas and bring in no jobs in American. Besides that, the resource in the Earth cannot support the consumptions we encouraging.

What is the direction we should go to create jobs?

Instead of creating jobs we decrease job demands — encouraging and helping people retire early. On that way we can leave the jobs to the younger generation. If people retire at the age of 55 like the Chinese did, the United States can have at least about 5 million jobs available in the market. In another way when we let people working 35 years instead of working 50 years in their lives we will create one third of jobs for this society. People who live in the retirement center may get part time job in the centers for pocket money.

How do retirement centers benefit the government?

Government will get benefit in four different ways.
1. In this picture, government is no longer a big consumer who just provides welfare benefits. It turns to be a big landlord with retired people as their tenants. The investments in the retirement centers can bring in income to solve the deficit problem in the social security system. Its profit can go up to 700% in thirty years.

The calculation is as follows: In a piece of land near the city, we can spend 3 million dollars to build a retirement center with 100 units. People would like to pay $700 to $1100 rent for the free activities and programs it has. In thirty years government can have 30 million dollars rent income from 3 million dollar investment after deducting the maintenance.

2. The process of building retirement centers create construction jobs directly and immediately.

3. A free apartment with welcomed entertainment would encourage people to retire early. Their jobs positions will be opened up for the unemployed. If 25 million American are in the retirement age range and only 20% of them prefer to retire still 5 million jobs positions will be opened.

4. Save huge home care and medical expense for the government. We can have medical students provide regular check up there and let people take care of each others in the daily life. The younger retired people take care of the older one to exchange for themselves being taken cared of when they get old. Today nursing homes in NYC charge $15,000/per month for one person. Government is paying over $ 2,500/ per month for people who need home care. Government even pays $1,600 for per person who needs entertainment in senior center. All those money are paid for low income people only. Has retirement centers most of these kinds of expenses can be saved.

Are any assets created in the proposal?

Government gets profit in this project because real wealth is created in the process. The services and activities that the centers provide will attract people pay more money than the local rents. Comparing with 15,000/per month for half room in the nursing home the senior center rents that government deduct from the social security check should be acceptable by the senior people.

How are the rents deducted from the social security payment when people retire early?

Government will provide free apartment instead of releasing social security check or only pay for the balance. Retirement at 55 years old is not mandatory. People who refuse to retire earlier get no benefit till they turn 69 years old. People who need pocket money can have part time jobs in the retirement homes.

How do you expect that people accept the retirement home?
Senior people worry about the lonely and sick the most. People did get less money after retire however that give them more time to enjoy life. In the retirement centers they should not feel boring because we have different courses such as computer, dancing, cooking, art, etc. They will not feel lonely either for they can register into the centers with friends or family members who have also retired. Every few years they can choose to live in a different centers in different places all over the country, such as Fluorides, Hawaii, New York, California etc. Every week they can have a trip by buses provide by the centers.
They donít have to worry no company when they get old. They know that they will not bankrupt even though they need homecare service because they once took of the others. Retirement centers can save money both for the government and for the middle class. There is no reason that the politicians and people donít like it.

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