Do the Math on $700 Billion
I haven't done all the math on this but it surely sounds good compared to reading my stock/money market report this month! Something to think about.
I'm against the $700 billion bailout of Wall Street. Instead, I'm in favor of giving $700,000,000,000 to America in a We Deserve It Dividend. To make the math simple, let's assume there are 200 million bonafide U.S. Citizens aged 18+.
Our population is about 301 million +/- counting every man, woman and child. So 200 million might be a fair stab at adults 18 and up. So divide 200 million adults 18+ into $700 billon that equals $3.5 million. My plan is to give $3.5 million 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 percent. Every individual 18+ would then have to pay $1.05 million in taxes. That sends $210 billion right back to Uncle Sam. But it means that every adult 18+ has $2.49 million left in their pocket. A husband and wife would have $4.98 million.
What would you do with nearly $5 million after taxes for your family?
- Pay off your mortgage -- housing crisis solved. and
- Repay college loans -- what a great boost to new grads. and
- Put away money for your kids' college -- it'll be there. and
- Save in a bank -- create money to loan to entrepreneurs. and
- Buy a new (high mileage!) car -- create manufacturing jobs. and
- Invest in the market -- capital drives growth. and
- Pay for your parent's medical insurance -- everyone's health care will instantly improve. and
- Have plenty of money left go go out to dinner every night, creating lots of new jobs for those poor kids that aren't quite 18.
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 ("vote buy") economic incentive that is being proposed by one of our candidates for President.
If we're going to do an $700 billion bailout, let's bail out every adult U S Citizen 18+!
We deserve it and Wall Street and its regulators 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 $700 Billion We Deserve It Dividend more than I do the geniuses at AIG or Washington Mutual. And remember, this plan only really costs $490 Billion because $210 Billion is returned instantly in taxes to Uncle Sam.
Ahhh...I feel so much better getting that off my chest.
PS: Feel free to pass this along to your pals as it's either good for a laugh or a tear or a very sobering thought on how to best use $700 Billion!!
- - -end of viral e-mail.
OK, now that that fantasy is done, let's start at the very top with what the author says: "I haven't done all the math on this but it surely sounds good." The key there is he hasn't done the math. $700 billion distributed to 200 million people doesn't give them $3.5 million each, it gives them $3,500 each. Big, big difference! You can certainly argue that citizens would do better things with that money than Wall Street, but let's start the argument with correct figures! -rc
Posted September 26, 2008
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