OVERVIEW, and What’s New With ER In 2021?
Hello, my name is Davis Jackson. ER is the Economic Rescue solution to rescue our children and grandchildren from our unsustainable fiscal path. Conventional wisdom says we have only two options, both of which mean guaranteed pain for every family and business in America: raise taxes / cut benefits. ER is a genuine third option which eliminates the pain and generates a huge WIN-WIN for everyone. It’s easy to cut through the fog and brainwashing of conventional wisdom if you’ll just let yourself confront the truth for a few minutes. Just please clear some space and make room in your mind for considering actual data.
I’d like to give you a quick update on ER with 2021 info. The main focus is to show you how easy it will be to implement ER. It’s low-hanging fruit! Imagine that you’ve got a friend in business as, say, a dentist or a construction company or a general small business services provider. Anything that you’re familiar with, okay? Now let’s say your friend comes to you and asks you to help her figure out what’s happening in her business. She feels busy, and customers tell her she’s doing good work … but she says the business is losing money and hemorrhaging cash flow. She’s going deep into debt to keep the business open. She asks you to look things over for a couple of days and see if you spot anything, get a fresh set of eyes. You spend Day One observing the activities, and you confirm that the business is doing good work and appears to be using best practices in your industry. On Day Two, you find the problem.
Your friend’s business is paying $300 per hour for labor. Everyone else in the industry pays an average of $25 / hr for labor. The dentist pays $20 / $26 / $37 for dental assistant / medical lab technician / dental hygienist. The construction company pays $22 / $22 / $25 / $25 / $29 / $29 for auto mechanic / welder / HVAC mechanic / carpenter / plumber / electrician. The small business services provider pays $20 / $20 / $26 / $27 for HR assistant / bookkeeper / paralegal / graphic designer. Your friend is paying 12 times what she needs to. That’s why her business is losing money, hemorrhaging cash flow and going deep into debt.
Now, you might be wondering how anyone could be this silly. How could anyone get into the mess of paying 12 times what everyone else in the industry pays? That’s ridiculous. Just stay with me for the moment, we’ll deal with the silly soon. For right now, just imagine you have found this practice occurring in your friend’s business.
You could fix that virtually overnight, right? Your friend just needs to start using the same model everyone else in the industry uses, paying $25 / hr for labor. Her business will immediately start generating profits and positive cash flow, which she can use to pay off the debt and return to prosperity. Easy and immediate, right?
Well, that’s exactly what we’re dealing with in ER. Congress uses 30% of covered payroll to fund our Social Security and Medicare benefits, when the rest of the retirement annuity industry would charge 2.50% of covered payroll to fund the same benefits. If we switch to the same model everyone else in the industry uses, our federal fiscal performance will immediately start generating surplus and positive cash flow with which we can pay off the debt.
The three short videos explain more about how it works. This is the key point I wanted to cover in this update, to really get it settled in your mind how easy this is to fix. Now let’s deal with the silly. You might ask, how did we get into this mess? How did we go so wrong? Let’s look at what FDR’s vision was in 1935 when he started Social Security. His message to Congress of January 17, 1935, uses terms such as “sound financial management of the funds and the reserves”, “annuities”, “self-supporting”, “voluntary”, “individual initiative” and “supplanted by self-supporting annuity plans”, which taken as a whole, can only be understood as a description of personal accounts with real assets using compound interest to meet the goals.
Similarly, his use of the terms “mitigating … prevention … and alleviation” of economic downturns can only be understood as a description of real assets held in personal accounts. Existing debt does not make things easier in a downturn, it poses a burden which becomes more difficult to pay. Only capital can serve to mitigate the results of a downturn. FDR’s words point toward real assets in personal accounts, not toward government borrowing.
But Congress never ran it that way. In the beginning, it might have been a bit of greed, just a desire to use a new pot of money for something else they felt was urgent, intending to put it back soon and get back on the right track. But the greed became a habit, as they enjoyed spending the new money. Then arrogance reinforced their habit, refusing to be questioned about how they were managing our money. Finally, brainwashing and intimidation were added to prevent people asking any more questions. So we wind up paying 12 times what we need to, and so-called “experts” are seduced and/or intimidated into agreeing that, why, yes, the Emperor is wearing a beautiful multi-colored robe!
That’s where we are. But now you know how easy it is to fix. Just start pointing out that the Emperor is not wearing a beautiful multi-colored robe, he’s naked as a jaybird! Pretty soon it will be obvious to everyone, and we can then easily fix it.
Also, remember that we have God’s Word on this, promising that it will work! (See the sixth FAQ for details.)
The book is now a revised edition, with updated calculations based on 2021 data. First sixteen chapters same as before, just adding a Chapter XVII with the update and a plea. The plea involves observing that, based on recalculating the liabilities and revenue stream for 2021 … the ER solution still works, but we’re running out of time!
What is the ER train?
The ER Train works by restoring revenue streams – YOUR revenue streams – away from wasteful government management and into a true Retirement-Plan funding method.
At the same retirement age as Social Security and Medicare, the life insurance industry and public employee pension plans would charge 2.50% of covered payroll to provide these benefits.
Congress, though, takes 30% of covered payroll to provide these benefits (income taxes are used to pay for Medicare, on top of our 15.3% payroll tax). That’s the 12:1 waste factor, 30% vs. 2.5%. It is already scheduled to become a 23:1 waste factor, with the sum of cost rates rising to 57% of covered payroll by 2080.
Once converted to the Retirement-Plan funding method, the cash to pay our benefits…comes from our portfolio! Just as a retirement plan should operate.
All we need do is manage our liquidity, as the life insurance industry and public employee pension plans have done safely and successfully for centuries. If we just do what we say we’re going to do with the money (keep Congress’ hand out of the cookie jar), the market will easily provide the liquidity we need.HOW IT WORKSGET THE BOOK
How will this help me?
More Take home pay
secure retiree health care benefits
The Train conductor
A graduate of Washington & Lee University, Davis served as an infantry officer with the 1st Cavalry Division. In 37 years as a CPA in both regional and Big 8 firms, as owner of his own firm and then corporate Controller and CFO roles, his teams have won 17 national awards across five different industries.
The ER solution has been briefed to Congress (twice, 1981 and 2008); approved by the Republican Party of Texas State Convention and much more…READ MORE
America does not have a low savings rate …
we just suffer a hideous embezzlement rate! Stop the embezzlement, and we will immediately enjoy the fruits of our abundant savings rate.