Solution to Financial Bail out.
Last Updated on Tuesday, 30 September 2008 03:22 Written by Brian Tuesday, 30 September 2008 03:22
Normally I don’t do this, but this message from my company’s HR person who happens to be a CPA was just too good not share with others.
Not to mention I am all for it!
Solution to Financial Bail Out – We Deserve It Dividend.
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 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 each. 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 have $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 re-distribute 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 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, this plan only really costs $59.5 Billion because $25.5 billion is returned instantly in taxes to Uncle Sam.
Love the idea. Hope it will result in some comments on your blog by those who really understand this stuff
I would please suggest rechecking your math. You’re off by 3 orders of magnitude, also known as a factor of 1000. The amount per person would not be $425,000. It would be $425. You got more than this in your “Economic Stimulus” check a few months ago.
Isn’t your billion there about a thousand times too big?
85 billion == 85 thousand million usually, which doesn’t stretch so far when divided by 200 million ($425 each, or less than the recent tax break).
Your HR probably shoudln’t be considered a decent CPA based on his math here.
$85,000,000,000.00 / 200,000,000 = $425.00, not $425,000.00
I normally don’t do this but:
You should really take a math calss again and that HR person should be fired for manifest incompetence.
(if you still don’t get it: 85.000/200 = 425$ each, you missed it by just 3 orders of magnitude …)
I’m afraid your maths may be the only person’s worse than that of the bankers themselves.
$85 billions = $85,000 millions = $425.00 per adult american.
And that’s about €1
This is absolutely brilliant!! +3
Interesting idea, except that my math shows me that’s $425 per each of the 200 million citizens, not $425,000. $435 doesn’t really give everyone enough to do anything life-changingly useful.
Maybe you need a different CPA.
Wrong maths. 85 billons for 200 million people is just 425 for each one. It is not 425k as your CPA friend pointed out.
% echo $(( 85.e9 / 200e6 ))
425.
Perhaps the american inability to do math might have something to do with why we’re in this mess.
I wouldn’t normally comment on some random blog, but the math is out by several orders of magnitude. Each tax payer gets $425 under this plan. Try paying off your house loan with that.
I think that math’s a bit off. (85*10^9) / (200*10^6) = 425. (Unless you’re in a country where a billion is 10^12, but we’re talking about US dollars here….)
Err … doesn’t 85 bilion divided by 200 million equal $425 each rather than 425 grand?
Your math is off by a few orders of magnitude…
85000000000/200000000
425
That’s 425 dollars per 18+ citizen.
your math is off by a factor of 1000. Unless you’re giving away 85 trillion dollars, the AIG bailout is $425 / person in your current math.
85,000,000,000 / 200,000,000 = $425
Fail.
I only see one problem: $85 billion divided by 200 million is only $425 per person.
That’s some arithmetic!
It’s great to find intelligent people! As many have pointed out in the comments the math is incorrect. The whole purpose of this post was to see during our “economic crisis” how many folks actually take the time to determine if the math was correct or not.
Almost everyone in my company, except 2 of us, whom this was sent to was more worried about how they were going to spend the $425,000 as stated instead of realizing it was only $425. I mean it was sent by the guy who does our books, so the math had to be right?
Needless to say he got a good laugh out of it as did I which is why I posted it.
The Fedora Community passed with flying colors!!!!
Also keep in mind, AIG’s 85 billion was a loan costing them around 12% interest ongoing, plus 80% of their stock value immediately. That’s pretty far from free money – taxpayers are getting paid quite a bit in fact.
It seems that everyday a new American industry is asking from US government a bailout because of impending financial exigency. After the failure of California-based IndyMac Bank, many people have wondered how safe their accounts really are. The government created the $750 billion TARP program to bailout troubled financial institutions in order to stave off a possible depression. This is like how getting a payday loan in order to hold you over until your next payday can also stave off a possible depression. A string of catastrophic bank failures would just make things worse, but it seems hard to justify giving the banks funds after they use those funds to give out corporate bonuses and buy corporate jets. You don’t see people doing this with a payday loan now, do you?