Dr. Francis Townsend's Townsend Plan

Definition

The Townsend Plan was a proposal during the Great Depression by Dr. Francis Townsend, an American physician, which advocated for the federal government to provide $200 per month (a significant amount at that time) to citizens over 60 years old on the condition they retire and spend the entire amount each month.

Analogy

Think of it like a monthly subscription box for seniors, but instead of getting random items in the mail, they receive money from the government with one rule - they have to spend it all within that month!

Related terms

Social Security Act: This is a law enacted in 1935 to create a system of transfer payments in which younger, working people support older, retired people. It was partly influenced by ideas similar to those behind the Townsend Plan.

Great Depression: A severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States. The timing of this event greatly influenced proposals like Dr. Francis Townsend's plan.

New Deal: A series of programs and projects instituted during the Great Depression by President Franklin D. Roosevelt that aimed to restore prosperity to Americans.