By Josh Truman
PHILADELPHIA, PA\ July 24, 2011 \ DIVERSE NEWS — What would happen?
Well, you may think of it as a bankruptcy. And what happens at a bankruptcy hearing?
1. You will be alleviated of some debts but not all.
2. You have the right to restructure (like a business).
3. You will have to restructure based on needs.
So, let’s say you are the government. You only have a certain amount of money and a certain amount of responsibilities. So, where can you make cuts?
SOCIAL SECURITY
If you based your redistribution on needs and are responsible for peoples’ livelihoods, then you could easily start there.
Here, you have the largest amount of the population, who are middle-class and since you must distribute based on basic needs (survivability, basic necessities and housing), you can start making cuts.
Take the middle-class example, the majority, and utilizing their incomes of retirement, bonds, IRA’s and savings and benefits from their employers, etc. What you, as the defaulter, would need to do, is make a claim that your concern is the subsistence of all the people. So, why should someone receive more than the other?
The middle-class people have, on average, a retirement check coming to them every month in the amount of $1,900 along with $14k in savings and an IRA or tax-shelter in the amount of $80k for the ones who saved.
The defaulter considers $1,200/monthly as the mean guideline for subsistence.
What do you do?
First of all, Social Security is not guaranteed. And, as with other government aid, such as welfare and SSI, recipients are required to disclose their incomes, including bank accounts, properties, etc. And if there is a certain amount that is over the limit – their check stops. The defaulter can implement this as a rule.
Since the middle-class example makes well over the subsistence level, they will receive the minimum amount for their security. If they make over a certain amount, they will receive nothing at all.
Where will the money go?
THE POOR
If you have a poor person, citizen or not (those rules are already in place), then they can receive the maximum under the rule of redistribution. Not only that, since subsistence is the virtue, they may also be eligible for a housing allowance and food-aid. All this because the middle-class example who worked their whole life, already has a home, plenty of savings and are secure in their retirement years. In order to balance everyone’s subsistence, redistribution will be the key to provide.
Thanks for working all those years, millions of people are depending on you.
-JT
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