The Investment In Stocks & Bonds As An Effort To Stimulate The Economy

In order to stimulate the economy one must contemplate several options as the ultimate decision. The government can print more money, increase inflation taxes or encourage individuals to invest in stocks and bonds. The committee under the legislature of Breonna Thomas has chosen to encourage individuals to invest in stocks and bonds as an effort to stimulate the economy through a program called The Save and Prepare Act.

The board members of the committee are fully aware that there are individuals that are not financially able to invest their money or are not aware of these types of investments, we have a proposed idea for this situation. Investing in stocks and bonds will benefits the economy, investors and the costs and funding will come from the individuals place of employment and their paychecks.The more individuals that are willing to save and invest their money, the better. To get this idea off the ground and into everyone’s ears is to educate them on what stocks and bonds are and how they will benefit them. Stocks are a claim to partial ownership in a firm.

Bonds are certificates of indebtedness. For a small amount out of each paycheck employees will own a part of the company that they work for. Not every company is public and offers shares of the company but that is also a part of our policy, to encourage private businesses to go public and explain to them how it will benefit them and stimulate the economy. In addition to this, we are providing low cost informational meeting about investing. Investing and stocks, gives banks money to hold onto for at least five to ten years, which stimulates the economy. Once we educate individuals it will encourage them to find work if they are unemployed.

According to CNN, the unemployment rate of African Americans is considerably as low as it was in the mid 1960s and as the government we want all individuals to find work that will benefit all individuals, so they too can make money in their sleep. For the individuals that are employed, it will encourage them to keep their current place of employment. Not only does this create a healthy resume but it costs employers less money from less uniforms and on-the-job training pay. At about the age of 40, people are taking retirement funds more seriously than they did in their twenties, but this program is designed to make them think about retirement as teenagers. Yes, we want 16 year old’s to start investing. It may seem risky but the real risk is not saving or investing and risking not having any money for retirement.

The more people we have investing in stocks, the higher the economy will be. Stocks benefit the economy, even though everyday is not a good day for them, through more labor productivity and increasing capital.When you look at your paycheck stub you will see a series of deductions including Social Security, Medicare, state and federal taxes and the only time you seem to see some of this money again is in February when you receive your income taxes back. Our program is set up the same way, it will be a small deduction of one-percent per pay period, unless you make any modifications. In order to be eligible, you must maintain the same employer for twelve consecutive months. You can register for the Save and Prepare Act through your employer, the paperwork is a series of questions about yourself including your marital status, number of individuals that reside with you and your annual salary.

For example, if an individual makes less than thirty thousand dollars per year or approximately two thousand dollars per month they qualify for their companies to provide them with a one-time small investment of stocks or bonds (individuals under other circumstances may receive assistance as well). When these individuals are ready to retire they will not look to Social Security as their only option, even though Social Security benefits state governments through spending and sending it back into the economy.

In conclusion, The Save and Prepare Act stimulates the economy by putting money into it. Act The Save and Prepare Act is an educational and financial resource that will encourage people to invest in themselves in a simple way. It benefits the economy by encouraging people to spend and it does not cost the government any money. The best way to stimulate the economy is to save and prepare.

References:

1. DePillis, Lydia. February 2, 2018. Black Unemployment Rate Jumps After Trump Touted Record Low. money.cnn, web.Sep. 2013. Social Securities Impact on the National Economy. Aarp, web.
2. Rand, Barry A. Oct.2013. Social Secuirty’s Impact On The Economy. Huffpost.Web. updated Dec. 2017.