What we could do with $85 billion
There is an email going around today that discusses some populist alternatives to the $85 billion bailout of AIG. I found the idea intriguing, if unrealistic, and I thought we could have a discussion.
What do you think of the bailout? How would you use the $85 billion to help the economy? Here is the email in it’s entirety (props to T. J. Birkenmeier, A Creative Guy & Citizen of the Republic):
Update: As noted in the comments below by attentive readers, Birk needs to check his math. $85,000,000,000 divided by 200,000,000 is $435, not $435,000.
Update 2: Below Birk refers to the $85 billion AIG bailout. The bill that Paulson and the Bush administration are floating to Congress today is for $700 billion. That would put the individual total at $3,500. Methinks I could pay down some debt with that.
The Birk Economic Recovery Plan
Hi Pals,
I’m against the $85,000,000,000.00 bailout of AIG.
Instead, I’m in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.
To make the math simple, let’s assume there are 200,000,000 bonafide U.S. Citizens 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 up..
So divide 200 million adults 18+ into $85 billon that equals $425,000.00.
My plan is to give $425,000 to every person 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 individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam.
But it means that every adult 18+ has $297,500.00 in their pocket.
A husband and wife has $595,000.00.What would you do with $297,500.00 to $595,000.00 in your family?
- Pay off your mortgage - housing crisis solved.
- Repay college loans - what a great boost to new grads
- Put away money for college - it’ll be there
- Save in a bank - create money to loan to entrepreneurs.
- Buy a new car - create jobs
- Invest in the market - capital drives growth
- Pay for your parent’s medical insurance - health care improves
- Enable Deadbeat Dads to come clean - or else
Remember this is for every adult U S Citizen 18+, including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.
If we’re going to re-distribute wealth let’s really do it…instead of trickling out a puny $1000.00 ( “vote buy” ) economic incentive that is being proposed by one of our candidates for President.
If we’re going to do an $85 billion bailout, let’s bail out every adult U S Citizen 18+!
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.
Here’s my rationale. We deserve it and AIG doesn’t.
Sure it’s a crazy idea that can “never work.”
But can you imagine the Coast-To-Coast Block Party!
How do 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 DC.And remember, The Birk plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.
Ahhh…I feel so much better getting that off my chest.
Kindest personal regards,
BirkT. J. Birkenmeier, A Creative Guy & Citizen of the Republic
PS: Feel free to pass this along to your pals as it’s either good for a laugh or a tear or a very sobering thought on how to best use $85 Billion!!
Posted Sep 23, 2008, 4:06 pm by Randy in The Economy
8 Comments
Something to say?
You must be logged in to post a comment.
Nice writing style. Looking forward to reading more from you.
Chris Moran
Birk needs to brush up on his math before putting us in an even worse position. It adds up to $425 per person, not $425,000.
The math is wrong. 85,000,000,000 divided by 200,000,000 is only $425. Not nearly as much fun. I could still use the $425 though.
LOL, Chris Grim & JT are right. That makes it smaller than the recent stimulus package. I don’t see $425 each solving many economic problems. Oh well *sighs*
I like the concept. I was actually thinking …why not give the money to the people who can’t pay their mortgages. They could then get caught up, paying them to AIG and the other lenders in distress. AIG’s money problem solved. If AIG is expected to pay back the money, which I assume they will have to at some point, we could request the same from the individual home owners. After all the government has the power to withhold earnings, add liens to the properties, withhold refunds and a myriad of otherwise illegal ways of protecting their interest. Most of us who are owed money do not have these means available to us, mostly because of the bankruptcy laws. Uncle Sam on the other hand, has a very strong right arm.
Only in America will $85 billion give $425 thousand each when divided by 200 miilion! Enron Accounting Co.
From FDR’s “Nothing to Fear” inaugural address in the depths of The Great Depression:
As pointed out by NBC’s David Gregory on Race To The White House.
@Brenda
Your ideas are not that far-fetched. President Clinton was on The Daily Show last night saying pretty much the same thing. Turns out that was what they did in the Depression, and it worked very well.