In Response to AIG Bailout

I received the following forward from a friend of mine on Friday:

Fw: We Deserve It

This is GREAT!!!!
If only some way, some how this could come to pass…

Dear Congress and Mr President:

I’m against the $85,000,000, 000.00 bailout of AIG. (That’s 85 BILLION DOLLARS). 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 18+. 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. So divide 200 million adults 18+ into $85 billion 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. So let’s assume a tax rate of 30%. Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000, 000 right back to Uncle Sam. But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $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 – what a great boost to new grads
Put away money for college – it’ll 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 Dads to come clean – or else

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman 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 ( ‘vote buy’ ) economic incentive that is being proposed by one of our candidates for President.If we’re going to do an $85 billion bailout, let’s bail out every adult U S Citizen 18+!

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. Here’s my rationale. We deserve it and AIG doesn’t. Sure it’s a crazy idea that can ‘never work. But can you imagine the Coast-To-Coast Block Party! How do you spell Economic Boom? 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 DC. And remember, The Family plan only really costs$59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam. Ahhh…I feel so much better getting that off my chest.

Kindest personal regards,
A Creative Guy & Citizen of the Republic.Fw: We Deserve It

Here’s my response:
The thing is, the gov’t actually bought part of AIG and now owns it, so it didn’t just hand them $85 billion. Hypothetically this means that the taxpayer money will be returned to the govt and our taxes shouldn’t have to get raised to cover it. And the other thing is, while you and I would all probably use the money wisely, the majority of Americans wouldn’t, for whatever reason. Look at all of the people who win the lottery. 99% of them end up filing bankrupty at some point after having won, because Americans have no clue how to manage their finances and feel entitled to get whatever they want. I can say this because my poor mother is an example of one of these people who needs a swift kick in the arse sometimes to get her head on straight. A combination of that entitlement, poor management of these banks, and poor government oversight/regulations has gotten us into this mess.

But, at the same time, getting a check for $300,000 would be nice. I don’t know what the answer is to this problem, other than people really need to stop spending money that they don’t have, and start saving some of the money that they do have. The only control we have in life is over our own personal choices.

Nevermind that $85 billion split up among 200 Million people only comes out to $425 per person.   This, by the way, in no way reflects on my friend who passed along the email.   She is a very smart and sweet person, and who among us wouldn’t want a check for a large sum of money, no strings attached?  It sounds nice in theory. But, sometimes I wish the economy would come crashing down temporarily and we’d end up in a depression, that maybe it would make some of the people in this country wake up from this sense of entitlement.   Nowhere does it say in the constitution we have a right to life, liberty, the pursuit of happiness…a house, two cars and a plasma screen TV.   Guess what, if you can’t afford a 20% down payment on a house, then you probably shouldn’t be buying it anyhow.   Live in an apartment, I did for the first 23 years of my life.   Can’t afford a new car?   There are plenty of used ones out there, or try taking the bus.  I’m just tired of all of this, and I’m tired of listening to people whine and manage their finances poorly and manage their lives poorly.  I’m tired of the companies and banks who take advantage of those who don’t know any better….predatory lenders, telemarketers, all of them.  I’m tired of the media who tells us we can have it all.   And I’m tired of our government not doing anything real about any of this.

What do you think?

Until next time,


2 Responses

  1. I think I agree with you! We bought a house in 1976 for $23,000 in Southern California, backing up to a golf course. The thing was, it was not a fixer-upper. It was a tearer-downer. But we couldn’t afford to tear it down and start over. So for the next 30 years, we improved it little by little. It was still small with 3 bedrooms and only one bathroom. But we enjoyed raising our kids there. As circumstances dictated (my mother’s death, inheriting my childhood home, renting it out for 14 months and then deciding to remodel the kitchen and move in ourselves) we sold our home at what just happened to be the top of the market. Major blessing. We put the money into CD’s at IndyMac Bank. And made good interest. Then there was that take over by FDIC. For about 3 weeks we dealt with incorrect information and had a significant amount of our savings (nest egg for retirement) frozen. It all worked out…..I guess. It was all insured. But times are crazy. Who knows what comes next. The house we sold is on the market again for about $150,000 less than the selling price we received for it.

  2. I’m glad that everything worked out for you, because it certainly sounds like you’ve done the right things to manage your finances. But, from hearing your experience, it is kind of scary that the safest place for our money sometimes seems like it may be under the mattress.

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