Have you heard about this???
By speakeasy
@speakeasy (4171)
United States
September 27, 2008 6:59pm CST
I received an intrigueing email today with an interestng proposal/plan. The originator of the email requests that it be passed on to other people so I am posting it here exactly as it originated.
"Hi Friends,
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 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,
Birk
T. J. Birkenmeier, A Creative Guy & Citizen of the Republic
PS: Feel free to pass this along to your friends as it's either good for a laugh
or a tear or a very sobering thought on how to best use $85 Billion!!"
What do you think about this plan? Would it work? Would any politician consider it? Are the figures and the math correct?
2 people like this
5 responses
@equilady (43)
• United States
28 Sep 08
I got this in an email too and tried to post it here but my rating isn't high enough to paste yet so I couldn't.
I think it is a wonderful idea. Of course it will never happen because the politicians are really not working for the average American, they are working to protect the big businesses and the people who could afford to RISK their money in the stock market and real estate to begin with! That is what the stock market and investing is all about RISK. So why do we now have to bail out the bone heads who took a risk, based on greed and the thought that they were going to rake in hoards of money while the rest of us worked to make ends meet? I say let it crash. Yes we will all have some difficult times. We will all have to work harder for a while. And hopefully we wil ALL learn some serious lessons!
Maybe we should send this plan to the politicians and see who even mentions it. No, wiat, that would be a waste of time!! It doesn't benefit any of them! This bail out is in my opinion one last gift from our fearless leader to his big business friends!!
1 person likes this
@speakeasy (4171)
• United States
29 Sep 08
And, you can tell who his friends are by looking at which companies he is letting fail and which ones are being bailed out.
1 person likes this
@speakeasy (4171)
• United States
28 Sep 08
I agree, big business has a strangle hold on our politicians and this supports the little people; not, big business. Unless they are like WalMart and think they would get a bunch of that money when people spent it. Then, big business might support it.
1 person likes this
@redyellowblackdog (10629)
• United States
29 Sep 08
I am sorry but the plan would not have the effect you predict. If every legal American adult suddenly received almost $300,000 the massive resulting inflation would be mind boggling. Think not?
How would anything get done with everyone thinking they have enough money they do not have to work for awhile? I'll tell you how things would get done. People would have to pay more to get things done. How much do you think it would take to get the garbage men to go to work? How about the farmers to raise food? How about the truckers to haul all the goods America needs to survive?
Just because everyone suddenly had a lot of money does not mean the necessary chores of life still do not have to be done. Even though people had a lot of money, the mundane necessary chores would be needed to be done and it would take a lot more money to tempt already well off people to do those chores.
@redyellowblackdog (10629)
• United States
30 Sep 08
Absolutely, without a single doubt, if everyone received $300,000 there would be massive inflation. Whether or not this is gloom and doom is debatable but it is not refutable that increasing the money supply enough to give all citizens $300,000 each would be inflationary. My explanation that seemed like gloom and doom is only a common sense attempt to explain the process.
It is a classic beginning economics exercise to ask a class what would happen if everyone is given $1,000,000. The answer is massive inflation. Everyone can't be rich. Rich is only having more money than others. If everyone has a lot of money, no one is rich.
I was attempting to convey the idea that giving away this massive amount of money would little effect anything in a long lasting meaningful way. The money supply would be inflated. Lenders with loans out would be screwed. That's about it.
@speakeasy (4171)
• United States
30 Sep 08
Number one - this is not what I predict - I am just passing this proposal on.
Number two - while some people would quit working many others would continue to work. They would pay off mortgages or just go out and buy that house they wanted. They would pay off those big credit cards debts or outstanding medical bills (so, they could run up more later). Some would save their windfall for retirement. Others would just go out and blow it all. Farmers would still be working; but they could pay off loans or just go out and pay cash for that new quarter million dollar piece of machinery that would make their job easier or for extra land to grow crops on. Truckers would buy new trucks or upgrade the existing ones; the ones who are getting too old to work would retire but the young ones still love the road and lifestyle. Also, since this money is only supposed to go to the legal US citizens, we still have MILLIONS of ILLEGAL immigrants that would still need to work for a living.
If my husband and I were to receive this type of a windfall (from the government or a lucky lottery ticket) we would pay off our mortgage, upgrade some things on our house, pay off other bills, purchase new cars, my husband would take early retirement and do some traveling in a small RV periodically, the rest would be saved for our retirement and I would continue to work simply because I am not ready for "retirement".
So, I do not think everything would be "rosy" like the originator of this propsal suggests; nor, do I beleive it would be all "doom and gloom" like you predict either.
1 person likes this
@LittleMel (8742)
• Canada
29 Sep 08
I think he is right that those companies are responsible for their own conduct. They made high risk investments for example and it went awry due to the economic situation, well it happens they have to swallow it. On the other hand, sharing this money to just everyone over 18 yo doesn't sound like a good plan either. Even in the times of crisis, there are still people who have a job or able to make a living although they have to stick with budget. I would rather have the money divided as percentage, like progressive tax concept. Those who earn less due to whatever reason such as disability, having more dependants than others etc will get higher percentage of this money. This way when they pay tax, these people can still take home enough money to support themselves. It would be easier to do it per family, not per individual. that way the head of the family is responsible on paying the tax on it and distribution of the rest of the money.
I haven't checked if this calculation is right however so the figure may not be that big after all. Since it always happens that when earnings go up, prices go up too, the govt will have to control the prices of basic needs items like medical, food, gas, schooling etc Hopefully most people would learn from the lesson and would stack on savings and low risk investment instead of spending spree just in case the economy takes a downturn again they would have enough to hold on
@speakeasy (4171)
• United States
30 Sep 08
Just like any other windfall - different people would handle this massive surge in different ways. Some would use it responsibly and others would just go out an blow it.
But, that doesn't mean the government should go out and bail out these companies either. They are NOT bailing them all out anyway only select ones. Others are being allowed to fail and are being bought up/out by their competition. In addition to this bailout of AIG; they are talking about a 700 BILLION dollar bailout for other companies.
This is NOT money we already have available just "sitting around" - this is additional debt our government (taxpayers) will owe.
1 person likes this
@miller23231 (873)
• United States
28 Sep 08
I've read that and I don't think there's a politician alive who would go for that! I think it's a fantastic idea!!! Nice to dream.
@speakeasy (4171)
• United States
28 Sep 08
Actually, can you imagine how MANY votes a politician would receive if they announced a plan like this just before an election! Just announce that if you were elected, one month after you took office, each and every adult over the age of 18 who is a legal US citizen would receive a check for more than $200,000 with all of the taxes on that money already paid so no additional taxes would be due.
Most people would fight their way to the election site IF they believed the candidate could pull it off.
