Stimulate the Payoff of Personal Debt

Hey Feds, here’s a free policy recommendation to help fix the economy: enact a three to four year program permitting people to prepay their debts with pretax dollars that would otherwise be used to make their tax-exempt 401(k) contributions. Current annual 401(k) contribution limits are $16,500 per person age 49 and under, and $22,000 per person age 50 and older ($33,000 and $44,000 total, for a husband and wife). On a national scale, the potential amount of debt that can be eliminated is enormous, particularly if the program continues for several years.

This country is in debt. Americans are in debt. Instead of spending more, the country and Americans need to spend less and pay off debt. It seems obvious to everyone but Congress and the President. Jeff Snyder has put forth the proposition that we should incentivize people to pay off their debts instead of spending money they don't have.