With little fanfare -- and much less reasoned debate -- the House of Representatives approved $25 billion in artificially low interest, taxpayer-funded loans for the U.S. auto industry. The Senate and President are expected to provide their approval in the next few days, but the details on how loans would be doled out will not be decided until after the November elections.
Given the $700 billion gift to bankers currently being pushed through Congress, it would be hard for Washington to take a principled stance against an auto industry bailout. But the industry had been hoping that the terms and conditions of the loans would be decided before the election, when both parties are looking to win votes from industry workers in battleground states like Ohio and Michigan. Analysts say that Congress may be feeling less generous after the elections.
With bailouts for the auto and banking industries underway, now would be a good time to deliver the elegy for capitalism and free markets. We have now transitioned into a hybrid model -- privatized reward and socialized risk -- where companies can earn billions and pay out bonuses when times are good, and count on handouts when the going gets tough.
Last updated: February 13, 2012: 08:46 AM
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Reader Comments (Page 1 of 1)
9-25-2008 @ 10:34AM
hank said...
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 - 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 US. 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 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 I do the geniuses at AIG or in Washington, D.C..And remember, The plan only really costs $59.5 billion because $25.5 billion is returned instantly in taxes to Uncle Sam.
9-25-2008 @ 12:04PM
Bill said...
Great idea Hank! I enjoyed your post. I believe that you included our 20,000,000 undocumented guest workers.
When they receive this gift of $297,500 after taxes, or do they not pay taxes unless they live here longer that 7 years, they will be able to return to their homeland, culture and retire. Then we will appreciated additional savings in welfare, police and prisons; also, we will solve the hot political issue of what to do with 20,000,000 people who cannot vote and work in virtual slavery.
9-25-2008 @ 12:38PM
dan said...
God your math is so bad, it makes that idiot Bush look smart. You are probably the reason why we are in this mess to begin with, too math-challenged to know that you can't afford that crappy loan sold to you.
9-25-2008 @ 1:00PM
BostonOU said...
The plan sounds great, only problem is with the math. $85 billion divided by 200 million people is only $425, not $425,000. Bummer though...
9-25-2008 @ 1:03PM
BostonOU said...
I'm not as upset about it as dan though ;)