Francis Townsend

Francis Everett Townsend (; January 13, 1867 – September 1, 1960) was an American physician and political activist in California. In 1933, he devised an old-age pension scheme to help alleviate the Great Depression. Known as the "Townsend Plan", this proposal would pay every person over age 60 $200 per month, with the requirement it all be spent quickly. It was never enacted but the popularity of the Plan influenced Congress to start the Social Security system, which involved much smaller amounts. The Plan was organized by real estate salesman Robert Clements, who made Townsend only a figurehead while the Plan expanded to thousands of clubs in many states. Townsend was born just outside Fairbury, Illinois, where he is memorialized by a post office named in his honor.

Life and career Francis Everett Townsend was born the second of six children on January 13, 1867, in Fairbury, Illinois. After Townsend contracted swamp malaria as an infant, the Townsend family moved to Nebraska where Townsend had two years of high school education. He is buried in Woodlawn Memorial Park in Compton, California.

Townsend Plan

The Townsend Plan proposed that every person over 60 be paid $200 per month. The Old-Age Revolving Pension fund was to be supported by a 2% national sales tax aiming to stimulate the economy.

There were three requirements for beneficiaries under the scheme:

they had to be retired; they had to be "free from habitual criminality"; they had to spend the money within 30 days (to stimulate the economy). and launched his career as an old-age activist. In 1978, The Associated Press reported that the National Townsend Plan would be shut down by the end of February that year, with only state chapters surviving, and that by then it had a "dwindling and aging membership."

While being questioned Townsend became angry at the questioning and stormed out. He was prosecuted for contempt of Congress and sentenced to 30 days in prison. However, in 1938, just as he entered jail to serve his sentence, he was granted a pardon by President Roosevelt.