Bar Stool Economics
You may have seen this before, but even so, it is worth a revisit as we head into the Obama years
Bernd inspired me to post this on the forums when we were at MOM. I hope you enjoy it. This was passed around on the first round of bailouts, even before the now $700Billion:
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
bonafide 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 billion 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?
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Pay off your mortgage - housing crisis solved.
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Repay college loans - what a great boost to new grads
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Put away money for college - it’ll be there
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Save in a bank - create money to loan to entrepreneurs.
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Buy a new car - create jobs
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Invest in the market - capital drives growth
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Pay for your parent’s medical insurance - health care improves
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Enable Deadbeat Dads to come clean - or else
Remember this is for every adult US 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 $1,000.00 ( “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 US
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
I wish this guy had run for president…he’d win by a landslide.
And that was $85B…what would $700Billion give us!!!
Yatchs for everyone!!!
As far as I can tell there is only one (major) mistake in your math. 85 billion divided by 200 million is $425 not $425,000 oops.
Yes, they could all go to northern European countries where the tax rates are much, much higher yet people enjoy a higher standard of living than in the US. Oh, and let’s not forget the higher education levels, higher environmental standards, health care for all and not just the lucky, lower infant mortality rates, lower incarceration rates,“flatter” society in terms of the differences between the richest and poorest members of society, etc.
Quite the bitching. The US has very low taxes compared to many other countries.
It’s not what something costs you, it’s what you get for your money.
Rolf
Wheat Hill MHC
PS: Jeez, I felt good when I woke up on 11-5. I do believe I will feel even better on 1-20.