AIG bailout? How about a US Citizen bailout?

[daniel3417]

I got this e-mail today. It would never happen, but this is definitely something to think about...

"I'm against the $85 billion bailout of AIG. Instead, I'm in favor of giving $85 billion to America in a "We Deserve It Dividend."

To make the math simple, let's assume there are 200 million bonafide U.S. Citizens 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 into $85 billion that equals $425,000.

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 $25.5 billion right back to Uncle Sam. But it means that every adult 18+ has $297,500 in their pocket. A husband and wife has $595,000.

What would you do with $297,500.00 to $595,000.00 in your family?
Pay off your mortgage
Repay college loans
Put away money for college
Save in a bank
Invest in the market while the gettin's good
Pay for your parent's medical insurance
Etc etc etc

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, it includes those serving in our Armed Forces.

If we're going to redistribute wealth, let's really do it instead of trickling out a puny $1,000 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. 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."

[RedGoneWILD]

this is priceless....and is getting forwarded on!

thanks for sharing

[RedGoneWILD]

only one problem....it amounts to $425 per citizen, not $425,000

[daniel3417]

only one problem....it amounts to $425 per citizen, not $425,000

I just did the math and you're right! I guess I should've checked the e-mail for errors first, but I suppose the principle is still interesting to think about..

[TheTGB]

I was just talking about this with my friend last night. I'm going to be $80k in debt after this year in college loans when I graduate. I'm pretty sure I won't get a government bailout. Although I might get bailed out by a job I choose. That would be nice.

[OnePimpTiger]

Hmmm...giving money the government has collected as taxes back to the people. Why not just enact across the board tax cuts and not let them collect it to begin with? That is a great idea, although it's nothing novel...conservatives have been saying that for years!

I'm sick and tired of everybody saying the bailouts should go to the people instead of the financial institutions. First of all, the financial institutions are the foundation of the economy...if they fail, the economy fails. There's a little more to it than just giving them a handout, the government is trying to ensure the strength of the entire national economy.

Also, a lot of people are bringing up the point that bailing out the companies will just make them more likely to do it in the future. That's exactly the same, only more so, in the case of the citizens. I have little sympathy for the thousands of people who have been living beyond their means while saving little to none for years just to keep up appearances and it's finally caught up with them. And I know somebody will say "The banks were misleading people and lying to them about how much of a loan they could afford." I bought a house 2 years ago. Before I went to any bank to ask about a loan, my wife and I sat down, went over our finances in detail, and calculated how much of a payment we could afford and, based on that, how much of a house we could afford. When I went to the bank, yeah they told me I could get a much larger loan than I expected...but guess what, I knew I couldn't afford it even though they would give it to me. It's pretty simple, you should figure up how much you can spend on a house and, even if somebody tells you to go higher, you should stick with that amount. If you do the proper research for as big of an investment as buying a house, you would know about the terms, interest rate, etc. Before I talked to any bank, I knew what an ARM was and all about variable rates w/balloon payments. People did more research on what cel phone to buy than they did on how to buy a house. If people kept proper finances, they wouldn't be in this situation to begin with. My family has no credit card debt, modestly priced vehicles (both bought used), free cel phones, etc, etc, etc and we're doing just fine. We've been trying to sell our house for over a year and we actually are making quite a bit less now (around $15,000/yr less) than we were when we bought the house, but we haven't even been late on a single payment and we're getting along just fine....because we live within our means.

So now all these people who've bought big, nice houses and brand new cars and all the latest gadgets and video game systems and mp3 players and $400 cel phones while not saving a penny are losing the houses they couldn't afford to begin with...of course they are! And if the government bails them out, they'll start right over again buying another house they can't afford without putting a dime back for savings for the next time this happens.

As much as people are saying the financial institutions deserve what they get, so do most of the citizens.

I'm sorry if that sounds a little harsh...and that it was so long. It's just been grinding on my nerves for weeks. I'm a huge proponent of personal responsibility and this whole debacle is a perfect example of America's almost complete lack of it any more.

[RedGoneWILD]

tiger pimp...i agree with you man! In fact Ron Paul pretty much preached personal responsibility and living within your means. My first job in high school was selling credit cards and it made me sick the first time I transferred a balance of over $100,000. How in the hell does somebody rack up $100,000 balance on a credit card? I could understand if it was for expenses for running your business or things like that, but these weren't.

Because of my experiences there, I'm the 26 year old idiot who's NEVER had a credit card. Car & house loans I am not referring to...I'm talking about buying non-essentials, and lots of them, on credit cards.

I lean towards the great philosopher Randy Moss...STRAIGHT CASH HOMEY! If I don't have the funds, i'm not buying.

However, I did just want to say that the reason we are bailing these companies out is because apparently they weren't fiscally responsible themselves. So it goes both ways. Yes people need to be smart about what kind of loan they can afford, but the lender needs to be smart too

[TheTGB]

Greatest thing I've read today:

"I lean towards the great philosopher Randy Moss...STRAIGHT CASH HOMEY!"

[chljoe]

I could see someone charging 100 000 dollars worth of stuff. I know I could.

[shortking98]

The only reason I have a credit card is to build credit. But I agree, there are plenty of people who shouldn't have one until they figure out the whole personal responsibility thing.

In the mean time I need to buy a new house, hopefully it comes with a garage so I can park my new car in it ;)