The American Government needs to work better for the people. It needs a redo. As long as it does, let’s try to make it a comprehensive redo in which many goals are reached. The USA Plan is a step in that direction. The USA Plan multitasks to reach the following goals:

1. The implementation of the USA Plan will create millions of jobs immediately by the infusion (redistribution) of $1 trillion a year into the marketplace. It should shoot our annual growth rate from its anemic 1.3% a year to 7% to 10%.

2. The USA Plan will facilitate cuts in the national debt from $190 trillion to $80 trillion overnight, and thereby lift the enormous obligation of America’s young to fund the retirement of our older citizens. See US Debt Cut by USA Plan.

3. The implementation of the USA Plan will reduce crime, poverty, victimization, and dependency on government.

4. The implementation of the USA Plan will save cities, counties, states and the Federal Government from the bankruptcy that will occur, or is occurring, by creating a self-financing retirement/pension system that will replace millions of plans presently underfunded or not funded at all.

5.  Universal Savings Accounts will economically emancipate single, married and divorced women. It automatically generates wealth for them even if they are married and don’t work.

6. The USA Plan will not allow the government or the courts to invade or otherwise tax “USAs”. Wall Street will have no say in the trust that administers the USAs. USA management will be independent and under the control of the account holder with few limitations.

7. The Universal Savings Account nest egg essentially narrows the distance between the rich and the poor and goes along way to reduce or eliminate the issue and complaint of “income disparity”.

8. The individual’s Universal Savings Account will fund better education and health care for themselves and their offspring.

9. As everyone will be invested in the stock market, the worker will have skin in the game, and therefore will have reason to help management improve the bottom line, and therefore the value of their own Universal Savings Account.

10. The Universal Savings Account will reduce stress individually, collectively and within relationships like marriage, where presently there is a concern to save and invest for retirement.

11. The passage of the USA Plan will, over time, restore the public’s confidence in its politicians, which at this moment is almost non-existent.

12. America’s workplace environment should improve, by the elimination of labor-management disputes on retirement and old-age medical needs which The USA Plan provides.

13. The individual’s Universal Savings Account will use the same tax shelter as the ultra-rich like Warren Buffet and Bill Gates – there will be no tax on the appreciation in value of the taxpayer’s investments.

14. By eliminating the need for corporations to fund their own employees’ pensions and old-age medical needs it will enable them to be more competitive with foreign manufacturers.

15. The individual’s Universal Savings Account will enable the pursuit of happiness and provide many with a reason to live, be responsible and live a life free of crime. This will especially be true of minorities who have had few opportunities to educate themselves and get better jobs. Even a minimum wage worker will retire a millionaire and leave to his/her heirs a substantial nest egg to fund their best education and healthcare on the planet.

16. The USA Plan is not a political gimmick. It uses both capitalism (the stock market) and collectivism (a 40-year investment without withdrawal) to achieve its goals. It will be the Super Bowl of government redos.

17. There are many adversarial relationships in American life – women v. men, labor v. management, etc. Enactment of The USA Plan will go a long way towards everyone pulling in the same direction, which will lead to our ultimate societal goal of “domestic tranquility”.

18. The enactment of The USA Plan will not affect benefits due participants, now or in the future, under existing Social Security and Medicare Programs. Monthly checks and medical care under those programs will continue as specified by law. Over time, the “USAs” will supply those benefits to retirees as most everyone will have sufficient funds to fund their own affluent retirement and the best medical care on the planet and will not need either Social Security or Medicare. The USA Plan calls for the benefits presently paid under Social Security and Medicare to be the floor under which no future benefits can fall to enable those few who never get USAs to be covered.

19. Under The USA Plan, payroll taxes are directed into each taxpayer’s own personal USAs to accumulate, grow and compound into his or her own personal wealth. However, the benefits due participants under the Social Security, Disability, and Medicare programs, which heretofore were financed by payroll taxes, still have to be funded and guaranteed by the U.S. Government. How? As the enactment of the USA Plan will reduce the US Government’s funded ($20 trillion) debt and unfunded ($110 trillion) debt from a total of $130 trillion down to $80 trillion, there is plenty of room to cover those obligations until increased future income tax receipts cover them. In other words, borrow from the Fed to cover the cost. This borrowing will be offset by the increase in tax revenues and the value of the dollar as a result of implementing the USA Plan.

20. The stock market is a risky investment according to its detractors. If that is the case why are the monies of every public and private pension fund in America invested in stocks? The knee jerk reaction is the market just falls and everybody loses money in his or her 401(k). Well, that is true if when the DOW dropped 50% from 12,000 to 6,000 you sold your stock and took a loss. Now, if you hadn’t sold, the DOW rebounded and your portfolio went up 400% from a low of 6,000 to 24,000. The benchmark DOW 500 Stock index has had an almost 10% per year increase in value and dividends paid in 40-year increments since 1871. The USA Plan does not permit the taxpayer to make investment decisions other than which stock fund or funds (minimum of 500 stocks per fund) he or she wants to be invested in during their 40-year working life. This limits losses from such mistakes as “going to cash” or “switching to bonds” which would magnify risk immeasurably, as novices usually sell out at the top and bottom of a cycle just as the market turns in the opposite direction.

21. You can ask if banks are only paying 1% on savings accounts, how can The USA Plan claim to deliver a 10% return. The simple answer is that government, through the Federal Reserve, determines bank interest rates theoretically to stimulate growth or counter inflation. Under the previous administration, rates have been artificially dropped to almost nothing. The government or its agencies on the other hand have no control over stock prices and dividend payments – they move generally on the income earning capacity of each particular corporation. If you owned the DOW 500 stock index on January 1, 1996 and held it to December 31, 1997, your portfolio went up 70% (not the 2% the bank would have given you). Under Obama, the dow dropped 50% then rebounded. Under The USA Plan, the yearly infusion of almost $1 trillion of new capital into the economy should generate substantially greater rates of returns than usual.

22. Enactment of The USA Plan will allow all government entities to avoid the bankruptcy of their safety net programs. As The USA Plan leaves the existing Federal Social Security and Medicare programs in place to service legacy participants, and others that fall through the cracks, it also makes the existing benefits the floor under which no future benefits can fall. The incentive of The USA Plan’s multi-million dollar nest egg to retire on will lead to a massive reduction of those needing safety nets.

23. The Plan calls for the annual infusion of that $1 trillion right into the equity marketplace. The infusion of new capital into the economy will generate enormous business activity and kick our rate of growth north of 10% per year in the near future. With that rate of growth, the unemployed will vanish as employers seek to staff new companies and expansions. We anticipate that private sector employees will syphon off the workers no longer needed in the public sector which will solve a collateral problem.

24. The Rise Up Theory of EconomicsThe Rise Up Theory of Economics does for the poor and middle class what the “Trickle Down” Theory did for the rich – it enables them to become wealthy and achieve the American Dream of financial independence. It is a simple concept. It redirects the 15.3% presently paid by individuals (and, in the case of employees, by their employers too) in the form of Federal payroll taxes into a personally owned investment account (a Universal Savings Account “USA”) that will grow into millions over the citizen’s working life. The funds are invested in safe indexed stock funds that have historically been growing at over a 10% rate for the last 25 years.

25. The average American makes $50,000 per year and pays $7,500 in payroll taxes. Under the USA Plan, that $7,500 invested weekly for their 40-year working life in indexed stocks will generate a $4 million nest egg and generate an income of $33,000 a month to retire on and buy the best medical care on the planet.

26. Every American has the chance to create wealth and retire comfortably. It won’t cost them a dime to create a million-dollar nest egg at retirement and monthly checks in the tens of thousands. When Congress passes The USA Plan legislation, payroll taxes which are presently sent to the government, will be redirected to the taxpayer’s own personal investment account – called a “USA” ( Universal Savings Account) – and immediately invested at the taxpayer’s instructions into approved indexed stock funds to grow over their working life into their personally-owned multi-million dollar nest egg. Just the income off the nest egg will afford each taxpayer a huge monthly check with which to enjoy an affluent retirement, the best medical care on the planet and a sizeable nest egg to pass on to the family.

We have an opportunity to make the world a better place. Rather than wasting time compromising the political ideologies of progressives and conservatives, Americans could use that time to employ modern economic and scientific advancements to eradicate poverty. The USA could lead the world into a new era where prosperity is the rule rather than the exception.  It is truly a plan that will deliver the American Dream to ALL people.

The USA Plan has tremendous benefits for city, state and federal governments, businesses, union workers, union management, African Americans, Latinos, married, single and divorced women. Every aspect of the American society will be set on a path to modernity utilizing proven liberty and free market principles that have made this country the greatest and most notable nation on earth.

My name is Jeffers MacArthur Dodge and I am a member of the Prosperity Commission.

My Grandfather Joseph Morrell Dodge was a chairman of the Detroit Bank, now Comerica. He later served as an economic adviser for postwar economic stabilization programs in Germany and Japan, headed the American delegation to the Austrian Advisory commission, and worked as President Dwight D. Eisenhower’s director of the Bureau of the Budget.

He formed economic reconstruction plans for West Germany after World War II, and implemented financial reforms in 1948. He later moved to Japan, having drafted another economic stabilization plan, widely known as the Dodge Line. In December 1948, he became the financial adviser to the Supreme Commander for the Allied Powers (SCAP), General Douglas MacArthur.

He orchestrated the development of the Japanese Savings Bank that eventually funded Japan’s recovery from last in the world in GDP to only second behind the USA. And he did it in only 10 years.  Its magic was the people didn’t have to pay taxes on the interest they earned. Millions upon millions of Japanese invested in that plan and the rest is history.  The USA Plan mirrors that approach by making ALL the people a part of the success of the economy.  And no tax is paid on the appreciation of the stock.