Posted by: Susan | September 29, 2008

The Best Bailout Plan

This has been making the email rounds lately and maybe you’ve already seen it.  It was obviously written at the time of the AIG bailout (how long ago that seems, sadly!) and before the current full-blown crisis hit.  I’ve edited the original a little, but it sounds like a plan to me!  Let’s get it going.

“I’m against the $85,000,000,000 bailout of AIG.  Instead, let’s give the $85 billion to America in a ‘We Deserve It’ dividend.  

To make math simple, let’s assume there are 200,000,000 bona fide U.S. citizens over the age of 18.  Our population is about 301,000,000 counting every man, woman and child.  So 200,000,000 might be a fair stab at adults 18 and over.  So dividing 200 million adults into $85 billion equals $425,000 per person.

My plan is to give $425,000 to every adult over 18 as a “We Deserve It” dividend.  Of course, it would NOT be tax free.  So let’s assume a tax rate of 30%.  Every recipient has to pay $127,500 in taxes.  That sends $25,500,000,000 right back to Uncle Sam.

But it means that every adult has $297,500 in his/her pocket.  A married couple has $595,000.  What would you do with $297,500 or $595,000 in your family?

Pay off your mortgage?  Housing crisis solved.

Pay off college loans?  What a great boost to new grads and to Sallie Mae.

Buy a new car?  Help the auto industry.

Invest in the market?  Capital drives growth.

Pay for yours or your parents medical insurance?  Health care improved.

Remember, this is for every U.S. adult, including those Lehman Brothers employees who lost their jobs and all the mortgage bankers, brokers, real estate agents, builders, developers, and others who have lost their livelihoods.  And, of course, for those in our armed forces serving worldwide.

If we’re gong to redistribute wealth, let’s really do it.  Instead of that puny $1,000 proposed by one of our presidential candidates (to buy votes).  Or that $600 provided by our current President.

As for AIG – liquidate it.  Sell off its parts.  let American General go back to being American General.  Sell off the real estate.  Let the private sector bargain hunters cut it up and clean it up.  We deserve it and AIG doesn’t.  If they did, they wouldn’t be in the mess they are in now!

Sure, it’s a crazy idea that can never work.  But can you spell economic boom?  I trust my fellow adult Americans to know how to use the $85 billion We Deserve It dividend more than I do the geniuses at AIG or in Washington, D.C.  And remember, the plan only really costs $59.5 billion because $25.5 billion is returned instantly in taxes to Uncle Sam.”

 

Now, just imagine if that $85 billion figure were replaced with $700 billion…..staggering thought, ain’t it??

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Responses

  1. Hey Susan, What am I doing wrong here? I keep coming up with $425 per person not $425,000–am I missing some digits somewhere?

  2. My calculator won’t handle that many zeros, so I assumed the math was correct in the email. It sure would work with $700 billion, though! But, after all, it IS satire….(and there are a bunch of blogs out there with the same post — wouldn’t want to spoil their fun!)

  3. Ahh, got it. Sorry to spoil the fun. But you know how I am with Excel–I never met a spreadsheet I didn’t love : -) I can’t help myself, it’s so sad.

  4. Well there you go, I would never have thought of using Excel. Must be that little engineer you’ve got in you lately! 😉

  5. Even if the number is only $425.00 per adult, It would still be a better deal to have let AiG and the rest fall and we would still have 700 billion in “real” money in the kitty. How many trees do you have to cut down to print up that kind of money anyway?


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