Instead of giving $85B to bail-out AIG…what about this idea?
Posted by: admin / Category: creative real estate investingI received an email the other day with this rational. Of course it won’t work, but its still nice to think about it.
I’m against the $85,000,000, 000.00 bailout of AIG. (That’s 85 BILLION DOLLARS).
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 US 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 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.
Kindest personal regards,
A Creative Guy & Citizen of the Republic
I am not saying its perfect or that I made it up! I received it on an email and it is the way the average citizen feels…just an idea…dang!!
And Fatima…I do understand the bail out of the banking system…as much as the next person…as much as the politicians want us to understand. Geez, girl…obviously you take this answers stuff TOO seriously!
Very creative idea, but I do not think that our Congress, Senate and White House thinks as much about individuals as they think about the just a bundle of "economy."
I was thinking that to boost the economy and give people more security, they could give us a year or two of no personal federal income taxes. This would allow regular Americans feel more secure instead of bailing out the companies that we will have to probably bail out again in another 10-15 years after the next real estate boom, but I do not think this will happen either.
July 1st, 2010 at 6:52 am
Obiously you do not understand the bailout.
It is to pay out the stock market and all the finantail companies.
(that would be nice but, it is not the point of the bailout)
If we do not have the bailout the whole stock market will fall…savings accounts…and your morgage/loans.
Their are many other things but, ya.
If we do not do the bailout all the shops will be closed because of the stockmarket.The whole world will fall and not the USA alone.
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I don’t know everything but, I get the point of it.
July 1st, 2010 at 7:22 am
I think you might want to check your math. $85 billion divided by 200 million is only $425 rather than $425,000. Your bailout plan would cost $85 trillion.
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Basic math.
July 1st, 2010 at 7:39 am
Very creative idea, but I do not think that our Congress, Senate and White House thinks as much about individuals as they think about the just a bundle of "economy."
I was thinking that to boost the economy and give people more security, they could give us a year or two of no personal federal income taxes. This would allow regular Americans feel more secure instead of bailing out the companies that we will have to probably bail out again in another 10-15 years after the next real estate boom, but I do not think this will happen either.
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July 1st, 2010 at 7:55 am
85 billion divided by 200 million is 425 dollars. Not 425,000 dollars!
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July 1st, 2010 at 8:01 am
How about no bailout at all? Look, Bush has been saying how well the economy was then BAM all of a sudden they need 700 Billion dollars just weeks before an election. First they said last week that it was needed now then it was by Thursday then by Monday. Last Paulson said is that the loan was needed as soon as possible. Doesn’t really sound that urgent after all.
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July 1st, 2010 at 8:09 am
first, adaiha is correct, the math is wrong.
85 000 000 000 / 200 000 000 = $425. not $425,000.
but, we’re not done yet.
<<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>>
– you might keep in mind that we got where we are because ordinary people bought houses that they had to know, or really should have known, they couldn’t afford. that doesn’t show that your fellow Americans have a clue how to use money.
– for many years now, the national savings rate has been negative. Americans are spending more money than they’re making. that doesn’t show that your fellow Americans have a clue how to use money.
– for many years now, Americans refuse to elect a politician who does not promise them a tax cut. even when that tax cut has to be paid by deficits. deficits must be paid by our children. tax cuts paid for by deficits is stealing from our own children. that doesn’t show that your fellow Americans have a clue how to use money.
however, just for a moment, consider what would happen if we all got a $400,000 present / bonus / bailout / rebate.
in truth, quite a number of Americans are both greedy, and not too bright when it comes to managing money. if you were to hand them $400,000 it wouldn’t surprise me if more than 1/2 of them would quit their jobs. then where would the country be? who would drive your food from the farmer to the grocery store? that would be the worst thing that ever happened in this country. you’d starve.
Kindest personal regards,
A dumb boring old Citizen of the Republic
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from above, how ’bout: <<I was thinking that to boost the economy and give people more security, they could give us a year or two of no personal federal income taxes.>>
that’d be nice, i don’t want to pay tax. but:
are we going to stop paying the military?
are we going to stop paying veterans benefits?
are we going to stop paying medicare doctors?
are we going to stop paying interest on the national debt?
let’s see, the current national debt is in the order of $10 trillion.
and the Total Outlays (Federal Funds): $2,650 billion a year.
thus, in 2 years, the national debt would be $15 trillion.
that’s $15,000,000,000,000.
worse, there really aren’t 200,000,000 taxpayers.
even worse, if we skip folks that pay very little, the actual number of taxpayers is considerable less than 100,000,000.
so, for each real taxpayer, their share of the national debt would be:
15 000 000 000 000 / 100 000 000 = $150 000.
that is, they’d have to pay interest on a $150k mortgage every year.
and get absolutely nothing for it.
maybe that’s not such a good idea either.
in fact, i really don’t see the government giving out money to individuals as a good idea ever.
surely not when we have the massive national debt we have today.
July 1st, 2010 at 8:42 am
minor flaw
it;s not "$425,000"
it;s "$425"
you people are innumerate
numerically illiterate
whoever did this doesn;t know the difference between a billion and a trillion
[clue: there is a difference, a BIG one]
wle.
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