Townsend, Dr. Francis
After the war the Townsends lived in Long Beach, Calif. But Townsend’s private medical practice did not prosper so he took a position as assistant city health director. Because of the Great Depression, he soon lost that job. Then, at the age of 66 and wanting to retire, Townsend grew increasingly indignant over the plight of the large number of poverty-stricken old people like himself. In 1933 he proposed a plan whereby the Federal government would provide every person over 60 a $200 monthly pension. The plan called for a guaranteed monthly pension of $200, a quite-considerable sum in the 1930. The pension would be sent to every retired citizen age 60 or older, to be paid for by a form of a national sales tax of 2% on all business transactions with the stipulation that each pensioner would be required to spend the money within 30 days. His idea was to end the Depression through consumer spending by way of ending poverty among the elderly.
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