How to save the United States of America's economy
The answer to the current economic problem is to pay the mortgages of people up to $700,000,000,000 dollars. Rather than trickle down the money from the top percolate the money up from the bottom. This solution will solve the immediate problem of home owners loosing their homes, and put the much needed cash into the hands of the banks.
From what I have read of the proposed solution We the People will guarantee loans which are in great chances of default. By guaranteeing the loans the banks are free to loan additional money to new clients and the economy continues to operate. But the home-owner still cannot pay his/her mortgage and when the loan fails he/she and family become homeless. To make matters worse We the People are the bank owners and are responsible for evicting those former owners.
In my proposal We the People, (the government), gives the money to the [struggling] home owners by paying off our mortgage. That way the bank get the money, and is free to make additional loans. And now that the home owner is released from the burden of the monthly mortgage payment he/she is able to make purchases like cars, major appliances, home improvements. These purchased are an instant economic stimulus. Major money begins to flow through the system through the thousands of small businesses in local communities.
If the largest banks fail in this scenario, too bad. The executives should have thought of the consequences when they approved their business plans. The economy will be fine because the 'little' guy will be in a position to spend and that money will percolate up to the banks which had always done the right thing. This plan puts the people ahead of business and saves the family. Small business benefits and by extension all economic sectors see huge gains. This is the 'real' help the government, that is We the People, can provide to help each other out of this greedy mess.
Labels: bank, economy, money, percolate up, trickle down
posted by Donuts and Coffee at 9:25 AM
1 Comments:
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 billion that equals $425,000.00.
My plan is to give $425,0 00 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 Safe in a bank - create money to loan to entrepreneurs. Buy a new car - create jobs Invest in the market - capital drives growth (Although, I don't think that's a very good idea right now ! ) 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 d o it...instead of trickling out a puny $1000.00 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 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 Family 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.
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