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Bail Out The People, Not Corporations
Over the last several months, our Government, both led by Republicans and Democrats, have dished out tax dollars to financial institutions, car makers, and insurance companies. Because of this, the deficit has ballooned and there appears to be no end in sight. The only thing economists seem to agree on is that despite giving out trillions of dollars, the economy has not improved. So I propose a bold new idea (well maybe not new), instead of giving the money to corporations who are asking for it because of mismanagement and greed, give it to the American People.
Bold Action Is Needed
Nobody disputes that the American economy is in dire straights. Further, nobody disputes that bold action is needed to bring the economy out of the current tailspin. President Obama is proposing bold action, yet his plan calls for giving trillions of dollars to financial institutions and car makers. He does this without asking for that much in return.
If the government is going to dish out trillions of dollars, why not just give it to the American People. And I do not mean in tiny sixty dollar chunks every pay period. I mean, give every American Family that filed a tax return last year a large amount of money - say $100,000 for each family or $50,000 for single people. Would this really put us in more debt than giving it to AIG or GM? No, and it will have tangible benefits across the economy.
Banks Will Benefit
One of the main causes of the financial institution meltdown is that banks are not able to keep cash reserves in place due the failure of the housing market and the inability of people to pay back loans. If the government gave the American People bailout money, the banks would be a direct beneficiary without having to be in control of the money.
First, if the government writes people checks, they are going to deposit that money in banks. This alone will increase the amount of deposit each financial institution holds and will help alleviate the cash reserve problem.
Second, people will pay back the loans. I do not believe that a majority of the people who are facing foreclosure want to run away from their debt. If given the chance, many of these people will bring their loans current. This will help the average American and help the Banks as well. Plus, if people can make payments on the loans, the banks can starting making new loans again because their cash reserves are in order.
The Business Community Will Benefit
If Americans are given a large amount of money, they will pay off debt. But, furtherance of the American way, Americans will go out and buy things again as well. Americans will buy cars, electronics, go to dinners, see movies if they did not have to worry about the consequences of spending $20. This in turn, will help the business community as much, if not more, that unfreezing the credit markets so small business can take out more loans. My plan will create profits again, which in turn creates confidence and jobs.
The American People Will Benefit The Most
Last time I checked, government existed to serve the people, not corporations. Yet, nothing is being done to help the individual American right now. Yet, it is the average Americans who are feeling the brunt of the current recession. It is Americans who are losing their jobs, homes, savings, retirement and college funds.
So, let's bail them out. Let's give them money and let the American Consumer decide which one of the needy corporations are worthy of our confidence and our dollars. If a Bank is liked by the American consumer, the American Consumer will deposit his money there. If the American Auto Industry is worthy, Americans will buy their cars. Conservatives keep saying the market will fix all the problems of the economy, alright, then lets give the American People money and let the market decide.
Americans, rich and poor, will be paying for the bailouts for decades to come. The rich by higher taxes, the poor by less social services. Why not let the American People decide where the money should be spent? Why not give Americans the opportunity to make their lives a little easier instead of ensuring that CEOs don't lose their jobs. If given the opportunity, the American People will do the right thing. The same cannot be said about the government that is supposed to serve them.
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