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The Promising Handshake

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The Promising Handshake The Promising Handshake There is not a single region in America that does not face unemployment. Few economic issues are of more concern to the average American than unemployment. The solution, a onetime lucrative severance package in exchange for retirement of a specific generation in the form of an upfront check, called the Promising Handshake. Basically, the Promising Handshake is an incentive to retire if the employee falls within the baby boomer generation, making room for the unemployed and incoming generation to find adequate jobs. It would be a federal program, in the company’s best interest because the incoming labor force would start off at a lower salary, significantly boosting the company’s profit. It would be the government’s responsibility to inform every working American over a certain age about this new option. This means it is still the employee’s choice to continue working, but if they retire by a specified year this would be their only chance to accept this offer. Companies would be allowed to give incentives to skilled employees that are still needed so long as their offer does not exceed 90% of the government offer. This one lump sum of cash offered would be based on years worked, job performance, and the amount of money paid into the system by the employee over that duration. If at least two of these factors meet undetermined high standards the retiree will also be able to collect Medicare as early as age 60 starting the year the Promising Handshake goes into effect. This is a new concept in the way that it would be on a national level, government supported, and benefit the unemployed, companies, and most retirees. A slightly similar, but still quite different concept is the Golden Handshake. However the Golden Handshake is a much smaller, non-government enforced, company policy used mostly as a safety net for wealthy executives to offset the risk of being fired. This does not benefit the general public in any way. The Golden Handshake also does not base the amount of a benefit received on performance, work experience, or amount of money contributed like the Promising Handshake does. This innovative concept is a great deal for the baby boomer generation in that it is designed simply to boost the economy making their lump sum of cash worth more in the long run, especially if they planned on retiring soon. As for the unemployed, aside from the new job positions it opens up, these positions are higher paying than previous jobs because they would now require degrees and specific skill sets, creating a high demand for their labor. This will also benefit many colleges because more people will be entering colleges in order to acquire degrees to fill these new jobs. The companies will also find this idea more cost efficient because higher paid employees will have incentives to retire allowing new employees to fill their place for far less money. Since the generation this is offered to is retiring, they will obviously be spending the money, putting it back into the system which is clearly an economic boost for the future of our nation. One of the biggest issues that must be addressed about this radical idea is where this money is going to come from to pay for these incentives without bringing the economy down. Typically with a Golden Handshake, the money to pay for incentives comes from the company that offered it. However the Promising Handshake is going to draw its money from several different places using a government Stimulus and a tax on companies. The Stimulus is just a starter loan the government would use to pay for the money upfront for all the retirees. This would only be temporary, because in the years following a tax would be enforced but in a way so as not to deter the average American because it would only be placed on the companies. This should also not daunt the companies because this tax would only be a percentage of the amount of increased profit after the Promising Handshake had taken affect. The Promising Handshake, as its title implies, is a promise. It’s a promise to the retirees that they will get their money, the unemployed that jobs will open up, and the companies that their profits will increase. More than anything it is a reassurance to the American people that the economy will improve and everything will work out just fine. References Beiser, Vince. "Rise of the Corporate Plutocrats." Los Angeles Times Magazine (Los Angeles, CA). Oct. 17 2004: 10+. SIRS Researcher. Web. 30 Sep 2011. "CEO Golden Handshakes or Shameless Shakedowns? 'System Is out of..." Globe and Mail (Toronto, Canada). 20 Mar 2001: n.p. SIRS Researcher. Web. 30 Sep 2011. Adler, Joe. "FDIC Details 'GoldenParachute' Limits." American Banker 15 Oct. 2010: 15. Gale Power Search. Web. 30 Sep. 2011. Cryer, Max (2010). Who Said That First. Exisle Publishing Limited. pp. 113. .
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