Ok, I have been following all the November Doomsday threads, and they have some merit, but in all likelihood we will be around in another month to
debate more stuff, so we need to go ahead and work towards fixing the politics and economy.
Now, in one of those other threads, somebody made some suggestions for how the bailout could have been spent. We have all seen these suggestions in a
variety of different ways, but I want to bring them together, with real data and show several scenarios that would have already worked.
First off the Raw Numbers:
$2,000,000,000,000 That is $2 Trillion dollars
If there are 300 million US residents then that equals
$6,666.67 per person (including children and infants!). That would have been more 10x the tax rebate that Bush gave!
If there are 75 million households then that equals
$26,666.67 per household. That is close to a year's salary for most families!!
According to THIS Bureau of Labor
statistic, there are 3.6 million "working poor"
familines in the United States with at least 1 parent working full time, but still falling below the poverty line.
How does $555,555.56 per impoverished working family sound? That is how far $2T could have gone!!
What about our next generation?
Well there is $829B in total Student Loan debt that is strapping the next generation of college attendees. These are the future of our country in
Engineering, Medicine, Accounting, and even Politics! Anybody think it would stimulate the economy if we forgave all that debt??? An extra $200 or
$500 per month in the pockets of young families and entry level workers trying to get ahead?
Sign THIS PETITION
if that sounds like a worthwhile
investment versus sending our money overseas or to big corporations!
What about all that money that went to carmakers?
They ran bad business plans, and the American public shifted our purchasing power to cheaper, more efficient, and more dependable foreign automobiles,
so the government turned around and subsidized the bad plans? Well, according to
Auto/Consumer/Revolving debt in the country is $2.48T. The baiout could have wiped out 80% of all consumer debt in one motion!!
Does anybody think the economy would have immediately recovered if all our credit card and automotive debt went away over night? Imagine the
purchasing power!! Imagine the production need! Imagine the result on the unemployment rate!!
Now, think about this.
The government gave this money to lenders and manufacturers and it didn't really get to us litle guys, BUT, what if the money went toward all that
outstanding debt? The lenders would still have gotten the money!!! They would still be enticed to open up the purse strings, make new loans, make
new investments, etc.!! It would have had the exact same effect, except it would have been immediate, and us little guys would have realized an
immediate impact from it. Instead, we are all left scratching our heads and wondering where the money got spent? We have the increased national debt
to show for it, but we don't have the economic recovery we were promised.
I know, some people don't like handouts. Some of us work very hard, and we despise people that would take advantage of the system, and are already on
government subsidies. Well, according to THIS Wiki
write up, there are 40
million people on Welfare receiving approximately $360B. That averages to $90k per person? In reality most of that money ( approx. 2/3rds) goes
toward administrative costs, and other programs, but imagine doubling or tripling the payout to Welfare for a year? No extra Adminstrative cost, no
added expenses, just pure benefits to the little person!! Say we double what we pay out? It only costs approximately $120B extra to double the
benefit. Therefore, lets say we Quadruple the payout!! Now those on welfare would be getting 4 times the amount they currently get, but we only used
$500B of the bailout.
That still leaves $1.5 Trillion dollars to go to the working poor families!!
That is still $5769 to be paid out per man, woman, child, and infant that isn't already on welfare!!
OR, that is still $416,000 per "working poor" family.
OR, that is still $24,000 per family of 4!!
OK, so lets say we QUADRUPLE welfare benefits. AND, we pay off / forgive all Student Loans in the Country, AND we give every "working poor" family a
nice $100,000 one-time gift to get them on their feet.
What would be the cost?
Well, the answer is that we could
(1) Quadruple welfare benefits for the year,
(2) forgive all Student Loan debt,
(3) give every working family that falls below the poverty line a $100,000 gift,
and still be left with enough of the $2 trillion dollars to paydown the National Consumer debt by 20%
Does anybody think those steps would have helped the "recovery" a little more directly, and had lasting benefits to the populace? And stimulated
production and consumer lending? And saved the Democrats their elections? And, restored some faith in the government decision making?
What am I missing here? I am no economist, but I can use excel and read some research papers in 1 afternoon, and I can get some exciting numbers.
What were the real economists looking at?
edit on 5-11-2010 by getreadyalready because: (no reason given)
edit on 5-11-2010 by
getreadyalready because: (no reason given)