Solution to US economic problem - Give every US citizen \$1,000,000

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Edwin Clarkposted 15 years ago

Instead of giving US corporations bailout/loans the government should give each of its citizens \$1,000,000 to spend on anything they want within the United States.

According to the US Census there are 305 million citizens. \$305 million dollar checks going out to people who will spend in the US is a paltry sum compared to the billions going to big business who may or may not survive.

Think about all the small businesses that could be started. Even new and bigger business could be started if a group of people invested together. Jobs will be created and people will buy.

People can buy cars, invest in stocks, pay all or part of their mortgage, buy a house, take long vacations in Disney World, whatever.

Bailing out car companies which I'm afraid to say are doomed to fail is just as good as burning the cash.

But give people money and they'll buy cars. The sales funnels back into the car companies, factory workers keep their jobs. People are happy

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JYOTI KOTHARIposted 15 years agoin reply to this

Bail out package of \$ 700B means \$2300 to each American citizen. Can Americans get out of their problem with this money?
Thanks,
Jyoti Kothari

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Edwin Clarkposted 15 years agoin reply to this

Hi Jyoti, I think you got your figures mixed up. It would cost every US citizen \$2300 in taxes to provide the bail out package of \$700 billion to big corporations. Now this \$2300 will obiviously come from people (like me) who are able to pay taxes, so children, people on welfare etc. are excluded.

US census bureau http://www.census.gov/main/www/popclock.html says there are 306 million men woman and children in the United States

So if the government gives each \$1 million dollars, the total is \$306 Million.

Tiny sum compared to \$700 Billion going to big business, right?

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Mark Knowlesposted 15 years agoin reply to this

Much as I hate to agree with Jyoti, your mathematics are a little faulty.

The amount of money committed is currently in the region of \$8.5 trillion.

Or \$8,500,000,000,000 (American billions are smaller than everyone elses)

With an estimated population of 301 million, that equals \$28,239 per person, or a Brand new Ford Mustang GT Premium coupe

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TheMoneyGuyposted 15 years agoin reply to this

Call me crazy, but if 305,000,000 people recieve 1,000,000 dollars, then would not the total outlay be in the realm of say 305,000,000,000,000 dollars like 305 trillion dollars.

I Think that will be more than a Mustang!

TMG

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panah100posted 15 years agoin reply to this

You got it there, unless we are dealing with Japanese Yen or something, you are not going to get 1 Mil.

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AEvansposted 15 years agoin reply to this

Funny you wrote about this as my husband said the same thing, however we know that they are not going to do it and they are trying to figure out tiny stimulus packages, so if you owe the IRS I guess you won't get one at all. One million people owe taxes and they cannot even pay them,have they looked at that as well? Maybe they should write that deficit off too as they seem to write off everything else.

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Alex Belalposted 9 years agoin reply to this

I wish the government will give every us Tax payers one million or half a million, i'm sure it will fix all kind of problems in our economy instead of bailing out the banks, which they will kick us out of our homes if we don't pay them after taking our money
It's very good investment, and don't forget it's our money after all
where is the guts Mr. president?

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gamergirlposted 15 years ago

My my.

Please do not come to the "finance" forums and not know how to do math.

Sheesh.

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Edwin Clarkposted 15 years agoin reply to this

Hey, its just an entertaining thought, no need to get all upset

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SirDentposted 15 years ago

Now this is a funny thread!!!

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gamergirlposted 15 years ago

LOL

I'm much more vicious when I'm actually upset.  It takes more than someone not being able to do simple multiplication for me to really get angry.

*patronizing wink*

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ngurecoposted 15 years ago

Edwin Clark, if you give each of the 305 million US citizens a million dollar each, you will need \$305 trillion. US is still one of the finest economy on planet earth but I am afraid \$305 trillion is not a small amount to give out for free.

If giving out \$305 trillion were such a snap, you may think the highways would be jammed bumper-to-bumper with chauffeured limousines. This is not be the case as there would be too much money competing to buy very few limousines, and a limousine will end up costing ten million dollars (have heard of Zimbabwe?).

If each citizen would hold such sum of money, then the Chinese will wash you, clothes you and feed you. The beneficially will be the Chinese who will have exported their goods and services to you.

The solution to the problem is to forget being given money for free. The citizens should work hard to avoid excessive imports, work harder so that you can export (and at low workable prices) as much of your surplus as you can.

Remember that every time you find yourself (your country) short of money, there is somebody (another country) elsewhere who is having excessive of what is your short.

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Edwin Clarkposted 15 years agoin reply to this

Hi nguero, I'm aware of world problems. But this is just an entertaining thought, even if it was plausible it may not even happen.

I believe in hard work and working for what I earn. But let me ask you this?
With the fact that people are being taken advantage of economically somewhere else, and your government offered to give you 1 million dollars, are you going to say no?

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Dustin L26posted 8 years agoin reply to this

But what if we regulate what types of spending can occur to foreign nations?

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ngurecoposted 15 years ago

The government is by extension you and me.

What they have is actually what is ours. If they offered to give each one of us a million dollars, tell them no because it’s bad economics. It’s the “government by the people” and my share may not be worth \$1 million.

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SirDentposted 15 years ago

I still think this is a very funny thread.

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John Bentley IIIposted 15 years ago

Edwin clark is on the right track with the idea of bailing out the people themselves,
all of this money will go right back into the economy from your local AM-PM all the
way up to the biggest of companys,it would eliminate tax dollars paid out in food
stamps,wellfare,Etc.and because poverty is the main cause of crime,crime also
would drop saving tax dollars and solving the prison over population problem.
This makes more sense than handing all this money to a CEO to retire on it
in the Bahamas,because that is who has ended up with the money before.
As far as math goes 305x1 will always be 305,if it is tax free of course.

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Mishaposted 15 years ago

While on the surface it seems much more beneficial than giving money to the big corporations, it will have the same effect on economy - a short lived boost coming back to the same issues, amplified...

What people are going to do after they spend their stimulus money?

PS All that assuming the math is correct, which in reality is off million times

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John Bentley IIIposted 15 years ago

Misha,My math was an attempt at dry humor,I should have put 305x1.00 is 305
dollars,305 million divided into 305 million people would be 1.00 each.
I would like to address the tax issue,I'm not sure that the amount the IRS
says is owed is correct for this reason alone,one year I did not file due to a
job that had me working 20 hrs a day.7days a week and it got away from me.
They sent me a bill for \$5000 and had me in the single tax braket with no
dependents even though I had been married and filing jointly for 20+years
with 2 children that I had been claiming for 16 and 18 years,they were not
honest with the billing and hoped I would just pay the amount due,I filed
and got a check back for \$2800 dollars,so thier estimates on who and
how much is owed may be way off.
A simple look at the previous years tax return would have changed everything,
this habit of dishonesty from the IRS should be looked at closely.

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gamergirlposted 15 years ago

P.S. 20 hours a day 7 days a week is illegal, isn't it?

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SirDentposted 15 years ago

I still think this is a very funny thread.

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John Bentley IIIposted 15 years ago

Not when I was building the company that I am now doing very well
with,that is what it takes to be successful as a self employed

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John Bentley IIIposted 15 years ago

There is no limit on hours that a person can work for themselves,
I found that I was even dreaming improvements and solutions the
4 hours that I did find to sleep.

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VENUGOPAL SIVAGNAposted 15 years ago

Aid packages to big business can ensure the continuity of business and welfare of  thousands of workers.  If each citizen is given something, it will vanish earlier and will expect something more somewhere...  Why so much unhealthy and wild imaginations?  Why not you think of paying a million as loan (those who can) to Govt. instead ?

Building a business house is not so easy and they are entitled help from the Govt. as they would have paid millions in taxes to Govt.
Let the Govt. help the big business houses and let the US economy flourish once again.

All your comments are like tigers and lions competing to take their share of meat from a  dying animal.  Whose Govt. is it after all .... ?

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Scott Mandrakeposted 15 years ago

I can`t really see giving everyone a million dollars as being a good thing.  Some people are just not equipped to manage that amount of money.  That being said I think that maybe we can discuss whether or not i`m wrong after we find out what exactly we would each do with a million dollars.

Join me here to discuss your hypothetical fortune http://hubpages.com/forum/topic/10250#post112244

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