From my in-box. Why we screwed up the AIG deal and how it could have been done differently.
I have been alerted via PM that there is a serious arithmetical error but I will let the sharp-eyed reader find it for himself:
Rather than giving $85 bn to AIG, it should have gone to us as a We Deserve It Dividend.
To make the math simple, let’s assume there are 200,000,000 bona fide adults in the U.S.
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. 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. Assume a tax rate of 30%. Every individual 18+ has to pay $127,500.00 in taxes. This sends $25,500,000,000 right back to Uncle Sam.
But it also 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 ? A great boost to new graduates.
Put away money for college? Done.
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 off to jail.
If we’re going to re-distribute wealth, we should do it properly with money to those who paid taxes. Rather than bail out a bunch of sleazy greed-crazed Wall St. idiots, let’s bail out every adult U S citizen.
As for AIG? Liquidate it. Let the private sector bargain hunters cut it up and clean it up. Its employees will have a nice cushion to help them out. |
