Want to Stimulate the Economy? Lower the Retirement Age to 55 Now!

by Thom Hartmann

One of the most powerful forms of stimulus we could apply to our economy right now would be to lower the current Social Security retirement age from the current 65-67 to 55, and increase the benefits back to where they were in inflation-adjusted 1960s dollars by raising them between 10 to 20 percent (so people could actually live, albeit modestly, on Social Security).

The right-wing reaction to this, of course, will be to say that with fewer people working and more people drawing benefits, it would bankrupt Social Security and destroy the economy. But history shows the exact reverse.

Instead, it would eliminate the problem of unemployment in the United States. All those Boomers retiring would make room in the labor market for all the recent high-school and college graduates who are now finding it so hard to find a job.

If enough Boomers left the job market, it would even flip the current dynamic of too-many-people-chasing-too-few-jobs upside down, and create a tight labor markets. Tight labor markets drive up wages.

And as wages go up, tax revenues – which are paying for Social Security (among other things) – would increase.

Additionally, these new-into-the-workforce people can then pay off student loans, buy new houses and cars, and otherwise drive the economy from the bottom up. Which will further increase tax revenues further strengthening the Social Security system.

To further tighten the job market and drive up wages (and tax revenues), modify the Fair Labor Standards Act of 1938 – which tightened the labor market and reduced unemployment by establishing the 40-hour work week – to include all hours worked by a person. We could also, like in France, drop the 40-hour maximum-workweek threshold to 35 hours (used by the Mitterrand government to successfully lower unemployment and stimulate the French economy). A final step would be to emulate the rest of the developed world and require by law that every worker get at least two to four weeks a year of paid vacation – further tightening the labor market.

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http://www.commondreams.org/view/2009/08/24-7

are forced to retire. Great move! If it was up to people themselves whether they want to retire at 55 or not, that would be one thing; but we know that at many places it is not. So let's make sure it's us against them: younger generation against the middle-aged. You had your jobs, now it's our turn, so go and fish or fly a kite. A wonderful way to have a civil society.

How many people are encouraged not to retire at the retirement age? Especially when it means hiring younger people at lower salaries?

retirement practices? Tell me.

lacking.

point. missed.

fail. Epic.

I assume.

the idea is to offer Social Security retirement benefits starting at an earlier age, NOT to force anyone into retirement.

Whether that might have the effect of companies cutting older workers I won't pretend to know...

it works.

you are welcome to stay in it...also...Give Me My MEDICARE at 55!!!

let some youngster have my job for less. go for it.

I don't know of many people who, on their deathbed would say, "Gee, I wished I spent more years at work".

in the economy, there are 70+ seniors being forced to work at whatever
type job they can find.

France understands this. We have too many people competing for too few jobs.

The two income family standard in America is a big problem too, no idea how to fix that one without sounding like a jerk. Just pointing it out. :)

Since one is now collecting SS and the younger one takes the job. Maybe we can get CHINA to help us lobby! They should like those numbers!

Imagine the propaganda onslaught and media hysteria if anyone in Congress introduced a bill to do this.

Add to it: extend Medicare to everyone.

First off I don't want to retire at 55. Secondly it took 30 years to get the experience I have. No kid coming out of school can replace me if I quit today.

But it does help out when we want to attack boomers for living past 55 and not wanting to be in poverty!

hands of the people, resulting in almost no demsnd for products and services is the problem.

I will retire when they drag me kicking and screaming out the door (mostly for show - I'll probably get hired right back as a consultant). My hero is a local guy who finally retired at 92 (and died a week later - probably from boredom).

My employer has spent thousands training me. It would take at least two years for my replacement to come up to speed just from the sheer complexity of the work.