Make the Poor Rich and America Wealthier

by Dick McDonald

I may have made a mistake putting “Make the Poor Rich” in the title of my book. Most poor people don’t consider themselves poor; most consider it a temporary condition. Those that pretend to care about the poor are generally more interested in the political power attached to their advocacy. In Los Angeles the City Council considers the poverty line at $56,000 a year. Yet only people making less than $20,000 a year in Los Angeles consider themselves poor.

I have authored the Rise Up Theory of Economics to rescue not only the poor but the middle class from the indignities of never having enough income during their working life to build independent wealth to retire on. To do that I had to build a theoretical economic engine that would power that vehicle. I found that repealing entitlements like Social Security and Medicare and replacing them with personal investment accounts was the best way to do it. The plan is simple.

Take the 15.3% of our income that is sent to the government by or for us as withheld payroll taxes and put them in our own personal account and invest them weekly in the capital markets (indexed Stock and Bond funds). We chose indexed funds for security and growth. We involuntarily invest each week during our working life and we end up with a million dollar nest egg when we retire. Even a poor man making a minimum wage of $7.25 a hour (no overtime)for 40 years will end up with a $1.2 Million nest egg that throws off $10,000 a month retirement check.

The personal account is a simple solution. It has not escaped the attention of politicians in Congress – each of them already has a personal account even though many tell their constituents that personal accounts will destroy Social Security and Medicare. No, politicians know all about personal accounts and their desirability; they all are presently enjoying the benefits they deny us.

Many people have been fooled into believing that personal accounts are too risky, too costly and the transition to that method would bankrupt us. Were any of that the case why has the Congressional plan worked so well. It not only covers Congressmen but also 3.3 million Federal workers. It has been operated for almost 20 years and it has proven that personal accounts like Rise Up proposes are not too risky, not too costly and appreciate into million dollar nest eggs.

The Rise Up Theory is a wealth creation tool. It is better than Trickle Down as it invites the poor and middle class as well as the rich to the party. In addition it annually pours 15% of the personal income of all working Americans into the capital markets which will fuel a geometric rise in America’s wealth thereby vastly improving our quality of life. In today's consumer-driven marketplace Americans spend all of their income and pour nothing into the capital markets.

If you are interested in Making the Poor Rich and America Wealthier visit www.riseupeconomy.com. You can get a free e-book there that explains the whole plan replete with graphs and tables to prove the mathematics; but don’t be fooled into believing that making the poor rich is some religious or social exercise. Rise Up is just the means to make America immensely wealthier, its culture fairer and free market capitalism more appealing to the rest of the world’s population.

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