Instead of bailing out AIG to the tune of $85B, take a look at this plan and it shows you what can be done to stimulate the economy. This is a brilliant idea, but because it makes sense, it'll never get traction...Unless we yell really loudly about it.
Let's take that $85,000,000,000.00 and spread it around. Take a look at this formula, it's noteworthy and it really makes sense.First some simple math:
Let us assume there are 200,000,000 bon-a-fide U.S. Citizens 18+. That number is probably high.
Our population is about 301,000,000 +/- counting every man, woman andchild. 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 per adult.
Give $425,000 to every person 18+ as an American 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 the Tresuary.
But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $850,000.00 and their tax share would be less then $255,000.00 that would be double the single tax rate, but still a significant number.
What would you do with six figures in your family budget?
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
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 $1,000.00 ( "vote buy" ) economic incentive that isbeing 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.
We deserve it and AIG doesn't.