More on the Bailout

I know, I’m beating a dead horse and I need to let it go.   But if I get one more email about this stupid bailout and how it’s a terrible idea, or how if you took $85,000,000,000 and distributed it to the 2,000,000 American citizens over the age of 18 that we’d all get $425,000 each (it’s actually $425, before taxes), I may have to scream.

Here’s the thing:

Here’s an interesting breakout of what the bailout could cost individual taxpayers, broken up by income level.

The article assumes every dollar the government has put into the bailouts this year ($1 trillion, which includes AIG, bear stearns, fannie/freddie, the auto industry, plus the $700 billion package) will return absolutely zero. This is of course, unrealistic, however does show the worst possible scenario.

Cost to the bottom 50% income bracket – $27/year,  cost to the top 1% – $173,000/year

If you think about the email in reverse, would it be worth it to each taxpayer to pay $425 to prevent a depression and hopefully protect your retirement/child’s college tuition fund/ability to get money out of the bank/ability for small businesses to get money out of the bank and stay in business?  

Sorry, I’ve read a lot about this.   I don’t know what the answer is, but I feel like it’s important we consider the consequences.  That, and I feel my blood pressure spiking. 

Yes, the banks made a huge mistake, yes, the government made a huge mistake. Am I happy that the bank CEO’s are getting big fat severance packages when their banks get sold off?   No.   But, I also understand that life isn’t fair, and regardless of what we do, certain people in this world will likely continue to get big fat checks whether or not they deserve it.   And all I can control are the choices that I make in life. 

Until next time,

Lorelei

PS.  If you disagree with me, feel free to let me know.   I’m not an economist by any means, but I feel like we all need to think about this beyond the email forwards we receive and beyond how we feel about this emotionally.

Advertisements

2 Responses

  1. I don’t disagree with you and I thank you for the resource information. The annual cost per taxpayer seems to be multiplied by 30 years! That’s a long time.

  2. “2,000,000 American citizens over the age of 18”. You’re missing a few zeroes here, but good point anyway. The bailout is HUGE!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: