How Welfare Works under Circulatory Spending

Welfare is replaced with your 25 withdraws that you get at age 18. These withdraws are for you to do things like building your own personal finances outside the system that is all your own. You can go to your own bank or investment firm and buy things like stocks, mutual funds, bank cd's and more. Sense your withdraws are totally tax free you will not lose much money so you can start building up that money right from where you left off. What this does is give you additional sources of money you can withdraw from in between your 25 withdraws in case of an emergency you may have throughout the course of your life.

There will be a strong recommendation that all young people under the age of 18 will need to some type of financial education before you make your first withdraw. We want everyone to clearly understand all the advantages you are going to have and how to take full advantage of your account to make the most of the new opportunity provided. The law will also strongly recommend that the people who are over age 18 to get some training as well. Tax companies can play a big roll in this since they built there business around the government tax code. They can revamp their business to help train people how to manage their money properly. It is not enough to just have your own account without some type of strategy.

Using your withdraws strategically will help you do things like setting up your childrens college fund, down payment for a home or first and last months rent for an apartment, money for daycare ect. Programs that helped people with things like grants, HUD programs, WIC, unemployment, Food Stamps and more will over time be reduced 75% to 90% to only help seniors who will not be able to get on the new program and homeless children. As those seniors move off welfare will continue to be reduced. For younger adults there will be more focus on helping you find a job or training for a new job. Work is a #1 priority under a Circulatory Spending model.

With our URHB in place this will open even new possibilities for young people to train for work. Since the URHB will be incharge of issuing student loans the monthly payments would simply be deducted from either your parents account or that students. The interest rates would be very low since the URHB will have more than enough money from taxes and working with investments firms to keep rate low. This is perfect since when young people start working there will not be much in their account to use yet. They can use this money to help pay for college or trade school or to help with rent and other expenses. They can apply for one as early as 18 years old so they will have what they need as they move on to their next phase in life.

Neither welfare, charity or unemployment is the proper way to deal with poverty. The best way to deal with poverty is through job creation, wealth building, entrepreneurship and money management training. The best charity you can give someone is a steady job. Every year our country has projects that either go undone, get put off for later or gets done once every other year or so instead of annually. There will always be a need for general laborers to keep America going. Money used for these services should go for these kinds of jobs instead of welfare, charity and unemployment. Let's take a look at how the money we spend on charity and welfare could have been used.

Every year when you add up how much we have spent on both welfare and charity it amounts to about $1.1 trillion. Now imagine if we could somehow take that money and create 32 million jobs at full time starting at $10.00h. We would spend this amount;

32,000,000 Jobs x $20,800 salary = $665,600,000,000 in total salary.
32,000,000 jobs x $12,700 URHBT = $406,400,000,000 in total URHBT.

Total money spent was $1,072,000,000,000 on salary and URHBT. When you subtract the difference you get $28,000,000,000. That amount could be used for equipment, supplies and administrative duties for those jobs. With that many new jobs being created across America the need for charity would drop next to nothing.

States and cities can work with businesses, and the wealthy to help fund these types of projects to get people working for those people who would like to help create more jobs but might not need to hire for their particular business. We would basicly be replacing welfare with something I call "Job Sponsorship Programs". The people who sponsor these jobs can have an active roll in making sure that the money is going towards the jobs they want to sponsor and not being used for anything else. Since each state can encourage the wealthy to become job sponsors to fund all kinds of projects that normally get set aside for later when there is money available. They could be given "job sponsorship notes" that can pay out in 2, 5, or 10 years or so depending on value.

There are abandoned homes that need to be torn down, trees that need to be trimmed back from streets and power lines, relining parking lots, sidewalks that are crumblings, power poles that need painting, litter that needs to be picked up, parking lot spaces that need repainting, park restoring, seniors that need help with home repair and yard work, streets that regularly flood that needs attention, parks that need work, ect. Plus, businesses need trained people to work for them and some money could go for paying the first few weeks of an employees salary in exchange for that employer training that employee. Cities can put together a list of things that need to be done and then people can sponsor these jobs so the city can hire people to get these projects done and get people trained to work. Cities will be setting the wages for these jobs and paying the new universal tax as well. All these new jobs will bring in more tax revenue and economy growth which will help the states pay back the people who invested for these jobs to be created. Investors get a small return on their money from the interest that the state taxes will give using some type of bonds and the satisfaction of knowing they help someone who needed a job find work.

Reducing the size of all three branches of government so that jobs we need more can be created is all part of welfare. The more money that goes to the people the more the people can do for themselves without the need of any welfare programs. The money your earn from your employer is your to use along side your check to manage your own life and make your own choices. But this is not a life insurance policy. You can only leave half the money left over in your account to anyone else. Everyone must work for their own money.

The over all goal of Circulatory Spending is to make welfare a thing of the past for millions and encourage employers to hire Americans and make it easier for others to start businesses of their own. With the money going to the people that work every job will have the potential to build wealth. People will be encourged to work two or more jobs to build up their money. As the people withdraw the the money and spend it in their community that will create growth in sales that can generate even more jobs for others. This puts the people in charge of the stimulus so the federal government would never need to initiate a stimulus ever again. Less borrowing will lead to less taxes and more for employees.

Circulatory Spending is not about getting rid of all welfare completely. There may always need to be some type of welfare in our system. But any in the future should be for a very short time to help a person get back on their feet and back to work. There will still be charities that can help you in your time of need. Ben Franklin once stated, "the best way of doing good to the poor, is not making them easy in poverty, but leading or driving them out of it." This is what Circulatory Spending will do at it's best.

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