Bailouts: Ever think of it this way??
Category: Blog

Got an interesting email forward from my father. I haven’t verified the math and statistical figures, but it looks right on a cursory glance (Update: It’s bad math, but still sounds like a good plan, no?). Very interesting idea to say the least.

Dear American Citizens,

I’m against the $85 BILLION 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 bona fide U.S. citizens, aged 18+.

Our population is about 301 million counting every man, woman and child. So, 200,000,000 might be a fair stab at adults 18 and up. Now, divide 200 million, 18+ adults into $85 billion – that equals $425,000.00 each! Yes, my plan is to give that $425,000 to every adult as a “We Deserve It” dividend.

Of course, it would NOT be tax free. So, let’s assume a tax rate of 30%. Everyone would pay $127,500.00 in taxes. That sends $25.5 billion right back to Uncle Sam! It also means that every adult 18+ has $297,500.00 in their pocket. A husband and wife would have $595,000.00!

What could you do with $297,500.00 to $595,000.00?

  • Pay off your mortgage – housing crisis solved.
  • Repay college loans – what a great boost to new grads
  • Put away money for college – it’ll really 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 parents to come clean – or else.

Remember this is for every adult U.S. citizen, 18 and older (including the folks who lost their jobs at Lehmann 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 $1,000.00 “economic incentive”. If we’re going to do an $85 billion bailout, let’s bail out every adult U.S. citizen!

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 the money and AIG doesn’t.

How do you spell Economic Boom? W-e D-e-s-e-r-v-e I-t d-I-v-I-d-e-n-d! I trust my fellow adult Americans to know how to use the $85 Billion “We Deserve It” dividend more than do the ‘geniuses’ at AIG or in Washington, D.C.

And remember, my plan only really costs $59.5 billion because $25.5 billion is returned instantly in taxes to Uncle Sam. Good idea? I think so.

OK… let’s look at that 700 billion bailout now!

-Unknown Source

What do you think of the idea? Sound off in the comments below!

5 Responses to “Bailouts: Ever think of it this way??”

  1. Andrew Durdin says:

    $85 billion (85 * 10^9) / 200 million (200 * 10^6) = $425, NOT $425,000.

    Not quite as dramatic as your forwarded email suggests, which apparently used the older primarily UK billion (10^12) to reach an erroneous conclusion.

  2. admin says:

    I figured, but was too tired last night to be sure. Still sounds like a great plan though. I wonder if its bad math like this that somehow got us in the mess we are in. I have a friend who used to develop software for the financial industry and let’s just say the stories I have heard will make any engineer (or really any human being for that matter) cringe.

  3. Jeff Standen says:

    Assuming the math *did* work out to $425K for 200M people (85 x 10^12- US$85 trillion), it would expand the entire U.S. money supply 8X (based on the 2006 M3). Inflation would raise the cost of everything to balance the supply of “out of thin air” free money. It’s a pipe dream.

    The necessary dark side of capitalism is that you have the potential for extreme achievement *and* extreme poverty through concentration of capital. If you pull up the low end, you pull down the high end. If you do that too much then we’re all given an allowance, and hard work or innovation become unrewarded.

    Ideally producers would always be directly accountable to consumers. When money appears out of nowhere it’s rarely a good thing for a free market.

  4. Anonymous says:

    What about the many non *US Citizens* who also pay taxes? Even if the math works out to $425, its kinda unfair to take taxpayer’ money to pay only the US citizens!

  5. javanut says:

    The math dosen’t add up, but I like the intent. If Obama really wanted to put himself ‘up there’ with the great presidents he’d think more like this, rather than bailing out the perps

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