Carolyn Jack
Editor and CEO, Geniocity.comA project of The Genius Group LLC
Creative Nerve
October 10th, 2008 | Uncategorized
The people’s bailout?
A friend of mine forwarded the following e-mail to me yesterday. I like the author’s willingness to shatter convention and expectation with a bold, creative solution to a problem that everybody else seems to be approaching with fear, bewilderment or knee-jerk certitude. We’ll never get out of the mess we’re in unless we get inventive first.
And I like the part about money to support entrepreneurs.
It isn’t clear if such a plan could really have the effect its author supposes, so, economists, please weigh in. But even if it couldn’t work, the plan makes a sharp political point:
The Birk Economic Recovery Plan
Hi Pals,
I’m against the $85,000,000,000.00 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 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 redistribute 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 U S 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 Birk 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,
Birk
T. J. Birkenmeier, A Creative Guy & Citizen of the Republic
October 10th, 2008 at 12:33 pm
Your math is off, but you concept is sound. So far, government commitments are up to about $15K per American household and growing.
http://bailoutgate.blogspot.com/2008/10/no-end-in-sight.html
October 12th, 2008 at 11:08 pm
Hmmm. This idea could so work with a little thought and perseverance. Before I blab on realize that the biggest problem with this is that it redistributes wealth….. Millionaires (not multimillionaires) are about .15% GLOBALLY controlling … well a lot more than everyone else and are not looking to redistribute the wealth.
Here is AIG on paper:
Market cap US$6.26 billion (As of October 10, 2008, close)
Revenue US$110.064 billion (2007)
Operating income US$8.943 billion (2007)
Net income US$5.36 billion (2nd Quarter 2008)
Total assets US$1.050 trillion ( 2nd Quarter 2008)
Total equity US$78.09 billion (2nd Quarter 2008)
Employees 116,000 (2008)
If you take the AIG employees (116,000) from the equation the 200,000,000 people who benefit from this including the 116,000 AIG employees have to be as relatively productive as the AIG numbers above or there is a void in the global caplitalist system. So for instance the Total Assets of the 200,000,000 Americans would have to be 1.050 trillion.
However if the new benefactors loaned AIG back “their own” AIG money they benefactions now stockholders would be in the market. It’s a lot more complicated than this but here is a starting point.
March 19th, 2009 at 4:37 am
[...] was forwarded to me by a friend and I posted it in my blog of Oct. 10, 2008. Signed by “T.J. Birkenmeier, A Creative Guy and Citizen of the Republic,” it [...]