AIG Bailout - An Opposing Plan

[TruBlu]

Today I received this in an email, you know one of those that one guy creates and it gets forwarded all over the place. Some guy thought of a plan that opposes the US government's AIG bailout. While not completely plausible and the fact that it just won't happen means that this is just something to get you thinking a little. Just read it, its good and I like it, so I figured some of you may.

I'm against the $85 BILLION 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, aged 18+.

Our population is about 301 million counting every man, woman and child. So, 200,000,000 might be a fair stab at adults 18 and up. Now, divide 200 million, 18+ adults into $85 billion - that equals $425,000.00 each! Yes, my plan is to give that $425,000 to every adult as a 'We Deserve It' dividend.

Of course, it would NOT be tax free. So, let's assume a tax rate of 30%. Everyone would pay $127,500.00 in taxes. That sends $25.5 billion right back to Uncle Sam! It also means that every adult 18+ has $297,500.00 in their pocket. A husband and wife would have $595,000.00!

What would you do with $297,500.00 to $595,000.00?

* Pay off your mortgage – or buy a house - housing crisis solved.
* Repay college loans – what a great boost to new grads.
* Put away money for college – it'll really 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 parents to come clean – or else.

Remember this is for every adult U.S. citizen, 18 and older (including the folks who lost their jobs at Lehmann 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 'economic incentive'.

If we're going to do an $85 billion bailout, let's bail out every adult U.S. citizen!

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 the money and AIG doesn't. Sure it's a crazy idea, but can you imagine the coast-to-coast block party?!

How do you spell Economic Boom? W-e D-e-s-e-r-v-e I-t d-i-v-i-d-e-n-d! I trust my fellow adult Americans to know how to use the $85 Billion 'We Deserve It' dividend more than do the 'geniuses' at AIG or in Washington, D.C..

And remember, my plan only really costs $59.5 billion because $25.5 billion is returned instantly in taxes to Uncle Sam. Good idea? I think so.

[StormCrow]

I can't believe that my tax dollars are going to make the rich richer....

In my opinion they need to pay that money back...

Same with this 700 Billion dollar rescue plan.

Storm

[SlightlyCatholic]

I can't believe that my tax dollars are going to make the rich richer....

In my opinion they need to pay that money back...

Same with this 700 Billion dollar rescue plan.

Storm

Welcome to the ugly face of capitalism- the wealthy helping the wealthy. Who knows, we may end up back where we were a hundred years ago with the big oil and railroad tycoons. After all, we're just a nation of whiners!

[CAPSmith]

Today I received this in an email, you know one of those that one guy creates and it gets forwarded all over the place. Some guy thought of a plan that opposes the US government's AIG bailout. While not completely plausible and the fact that it just won't happen means that this is just something to get you thinking a little. Just read it, its good and I like it, so I figured some of you may.

I'm against the $85 BILLION 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, aged 18+.

Our population is about 301 million counting every man, woman and child. So, 200,000,000 might be a fair stab at adults 18 and up. Now, divide 200 million, 18+ adults into $85 billion - that equals $425,000.00 each! Yes, my plan is to give that $425,000 to every adult as a 'We Deserve It' dividend.

Of course, it would NOT be tax free. So, let's assume a tax rate of 30%. Everyone would pay $127,500.00 in taxes. That sends $25.5 billion right back to Uncle Sam! It also means that every adult 18+ has $297,500.00 in their pocket. A husband and wife would have $595,000.00!

What would you do with $297,500.00 to $595,000.00?

* Pay off your mortgage – or buy a house - housing crisis solved.
* Repay college loans – what a great boost to new grads.
* Put away money for college – it'll really 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 parents to come clean – or else.

Remember this is for every adult U.S. citizen, 18 and older (including the folks who lost their jobs at Lehmann 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 'economic incentive'.

If we're going to do an $85 billion bailout, let's bail out every adult U.S. citizen!

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 the money and AIG doesn't. Sure it's a crazy idea, but can you imagine the coast-to-coast block party?!

How do you spell Economic Boom? W-e D-e-s-e-r-v-e I-t d-i-v-i-d-e-n-d! I trust my fellow adult Americans to know how to use the $85 Billion 'We Deserve It' dividend more than do the 'geniuses' at AIG or in Washington, D.C..

And remember, my plan only really costs $59.5 billion because $25.5 billion is returned instantly in taxes to Uncle Sam. Good idea? I think so.

I hope whoever actually came up with this plan isn't an accountant.

$85,000,000,000 / 200,000,000 = $425.00 each. What would I do with an extra day an a half of pay? Not much.

So lets work with your figure.

$850,000,000,000 would give us $4250.00 each
$85,000,000,000,000 would give us $425,000 each

So unless you want an $85 trillion dollar bail out plan...

[TruBlu]

I hope whoever actually came up with this plan isn't an accountant.

$85,000,000,000 / 200,000,000 = $425.00 each. What would I do with an extra day an a half of pay? Not much.

So lets work with your figure.

$850,000,000,000 would give us $4250.00 each
$85,000,000,000,000 would give us $425,000 each

So unless you want an $85 trillion dollar bail out plan...

I didn't even do the math on that lol. But seriously, I'm still opposed to the bailout because the pompous bastards that are running these companies drove them right into the ground. Now they want some money from the man to help them out, I'd say tough luck and then invest the money into a company that has their head on strait.

Oh, and maybe we should start regulating these companies more (no thanks to the Bush Sr. or Clinton administrations for that) so that the government doesn't have to bail them out. Just my opinion...

[CAPSmith]

The bailout is an effort to avoid another Great Depression. Trillions of American's dollars are tied up in those firms and for them to be gone, overnight, would be devestating to our economy and the millions of Americans who have invested in them.

Do I agree with it, in principle - no. I don't think that those who make the right decisions and invest their money wisely should have to burden the debt of those who were greedy and stupid with their money. However, unfortunately, this might be a necessary evil.

[Spider]

I didn't even do the math on that lol. But seriously, I'm still opposed to the bailout because the pompous bastards that are running these companies drove them right into the ground. Now they want some money from the man to help them out, I'd say tough luck and then invest the money into a company that has their head on strait.

Oh, and maybe we should start regulating these companies more (no thanks to the Bush Sr. or Clinton administrations for that) so that the government doesn't have to bail them out. Just my opinion...

I think you'll find insurance and finance are already regulated to a considerable extent and the regulators certainly aren't smart enough to predict this kind of stuff. If the regulators were that knowledgable and prescient they wouldn't be regulators, they'd be big money players.

[StormCrow]

I agree with Spider,

Insurance and Finance are well regulated it is the CEO's that need regulation.

Exxon last quarter made a net quarterly profit of 11 million dollars. Don't we as the American people (no offense Spider...lol) have the right to say that they should be ashamed of themselves? Seriously the markets are crashing for one reason...greed.

Storm

[SlightlyCatholic]

I agree with Spider,

Insurance and Finance are well regulated it is the CEO's that need regulation.

Exxon last quarter made a net quarterly profit of 11 million dollars. Don't we as the American people (no offense Spider...lol) have the right to say that they should be ashamed of themselves? Seriously the markets are crashing for one reason...greed.

Storm

Unfortunately, there's no way to stop people from being greedy and stupid, both of which many CEO's have become. All we can do is take appropriate action after the fact. I still think a problem with our overall economy is the simple fact that a sports player has the capability to make 25 times more than our President. I guess that tells us where our priorities truly are. The Romans treated their gladiators as slaves and we put ours at the upper echelons of society.

[TruBlu]

Unfortunately, there's no way to stop people from being greedy and stupid, both of which many CEO's have become. All we can do is take appropriate action after the fact. I still think a problem with our overall economy is the simple fact that a sports player has the capability to make 25 times more than our President. I guess that tells us where our priorities truly are. The Romans treated their gladiators as slaves and we put ours at the upper echelons of society.

Oh that's one thing that really makes me mad. These sports players are getting paid hundreds of thousands, millions even to play a game. Then they are considered "heroes." And why are they paid that much? Greed. Can't stand it...

[space3math]

I agree with Spider,

Insurance and Finance are well regulated it is the CEO's that need regulation.

Exxon last quarter made a net quarterly profit of 11 million dollars. Don't we as the American people (no offense Spider...lol) have the right to say that they should be ashamed of themselves? Seriously the markets are crashing for one reason...greed.

Storm
I know this is a side note, but what exactly about Exxon proves greed? Their profits are large, yes, but so is the amount of business they conduct - their profits have generally fallen at about the 10% range, which is not exactly an unusual mark. There also hasn't been any relation found that I'm aware of between increased gas prices and increased profits.
Sources for specific data can be found later if needed (got to go to class for now), but I've heard this argument many times before and Exxon just seem to be a great example of corporate greed. Does greed exist? Absolutely, but let's not lump Exxon in there just because it's a big business and we're mad about high gas prices.
(And no, I don't have any family members that work for Exxon!)

[Billyd]

I saw an article in Reader's Digest awhile back that broke down the cost of a gallon of gasoline and where each cent goes at $3.00 gal. I will try to find the article.

[CAPSmith]

I agree with Spider,
Exxon last quarter made a net quarterly profit of 11 million dollars. Don't we as the American people (no offense Spider...lol) have the right to say that they should be ashamed of themselves? Seriously the markets are crashing for one reason...greed.

Exxon's profit in Q2 of 2008 was ~11.68 BILLION dollars.

2007 annual sales were ~375 billion dollars.

Break that down, you get 93.75 billion per quarter in sales.

11.68/93.75 = 12.4% profit

Did you know that Wal*Mart makes about 450% profit on the clothing they sell to you?

Heck the company I work for has a significantly higher profit margin that Exxon does. You pay more in taxes per gallon than the oil company profits.

[mtnsldr]

There are so many factors that go into this that it is nearly impossible to unequivocally say that Exxon or any other major Oil producer is making "more" profit.

However, one thing that has been noticed is that based on prices and the weight of the dollar, etc we ought to be paying around 2.60 per gallon. Prices are nearly equal to what they were when we were paying that price before... So the question is if that dollar isn't fleecing the pockets of the oil industry, where is it going?