Bail Out The People, Not Corporations
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The Bailouts
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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Iff you gave each citizen one million...just use round numbers..$300,000,000. That leave $670,000,000,000 to bail out companies, banks etc...Right?
That is what I am saying. Plus, in my non economic background, opinion, if you gave the money to the people, you may not have to give it to the companies because banks, businesses, etc would receive a majority of the money anyways in the normal stream of commerce. Or at least, you won't have to give them as much and they would not be burdened with debt.
One requirement to receive the money would be auto repay of all debt...then you get the remainder back...seems too simple. i agree with what you are saying as well. i live in a tourist area...tourism was down because of gas prices...maybe even offset gas prices...
We have all been sayig that but nobody is listening , we should all write the white house and maybe our voice would be heard, then again if they gave the money to us, then they couldn't control the people however I agree that it makes sense. I vote you in BG you have my vote now go and get them!!!:)
I am ready.
Tourism has almost died in many places in California. I agree some should go to debt, I know mine would. But, if I paid off student loans, lowered my mortgage and got rid of credit cards, then my income would go to other things. Isn't that what we want. Giving it to bank so they can lend, cause more debt, doesn't make sense to me.
One reason AIG Is getting all the money Is because they are the Investors for the pensions of our congresspeople . So do you believe for one second they are,nt going to keep funneling money Into that ? AEvans my friend they hear us they choose not to listen ! That Is why we are starting to get these teaparties . We are back to taxation without representation !
Thanks for reading.
They aren't even taxing us yet for it. That is the problem. Just more debt. Give me some money and I will pay off my debt, then go spend. Seems like a more sound policy.
Tony: That makes me ill , here is a good one for the banks that happened to us, we had a house yes we had a house and our arm kept re-setting we gave JP 6,000 dollars for a modification and they miraculously lost the ppw and auctioned our house. We were still making payments and they claimed banking error, needless to say we had to hire an attorney which is costing bucko bucks and we are now in a rental. We have yet to recieve any later saying our house was auctioned, the bank took our money and the investor who bought it told us we had to move because he owned. We stripped all of our stainless steel appliances etc. including our pool equipment and fans that we put in. The investor wasn't happy but we told him to take it up with the bank as we had no idea we were on the auction block as no letters were ever sent, however our money was certainly taken. Needless to say we now have a huge foreclosure stamped across our credit and our home shouldn't have been snatched at all. How is that for a great banking system? Now that I told my story I feel better now, we need to take back our rights and I am certainly open to suggestions. :)
AEvans I am really sorry to hear that .And bgpappa I forgot to say this Initially but another solid hub !
Thanks Tony. Sorry to hear that Evans. I too have had problems with Banks, but not to the extent you have. Someone hacked into my account, on Payday. I caught it late. Informed the Bank. Bank said they would close the account and open a new one. Next direct deposit would be taken care of. Wasn't. Lost another paycheck. Lost two paychecks. Bank said, by letter, they would refund all and take care of my account. Didn't. Lost another paycheck. Three paychecks. I closed my account. They haven't refunded yet. Been over a year.
That being said, how does helping banks help people like me. My credit is ruined, so noone is going to lend to me right now. (guy filed tax return on my behalf, took out payday loans, etc.) Doesn't make sense.
It certainlt doesn't make sense does it? They take your paychecks and the snatch our house, I am wondering how many others have been had by corupt banks? And there are many more coming down the pipe line. We are all vicitms and I do not trust them one bit!!! I do not believe it is going to get any better, you have been robbed and we have been robbed , so who is going to help the ones that have been there for them all of the time? I bet if we all pulled our money out and stashed in our homes, they would do something about it, wouldn't they? I also bet if everyone handed in there keys on there homes , they would also go belly upor returned every vehicle financed, could you imagine? What do you think they would do then? Our government may do something about that , now wouldn't they?:)
I think that is what is happening. People are walking away from their homes and not buying cars. The banks are running low on cash. That is how this started, and it started a few years ago.
Sorry about your house, that is just horrible.
Thanks for reading.
I love your hub and thanks for listening sorry to vent about the bank on your article , this is a great piece and I am also sorry to hear about your money situation, let's look on the bright side, we are still working and eventually it will have to end!!:)
Social upheaval Is starting to happen . And I hate to say this but some state are already training the National Guard for rioting . People are gettin pissed off and unfortunately a crisis Is what It took to wake us up ! AEvans and bgpappa I am sorry for the situations you are both In . It might sound corny but I consider you guys like hub buddies !
tony: I am your hub buddy too!! I vented on here and bless BgPappas heart he listened and you listened to. You are correct social upheavel is starting to happen and people are getting damn mad, I cried and then got angry , however I am past it now as the house we are in is less and bigger so I guess you can say we are blessed.:)
Thanks Tony, same here.
I don't know if social upheaval is upon us, but a little revolution every now and again never hurt anyone (peaceful of course.) I had hoped the Obama movement would be just that, but so far I am not convinced.
Evans, venting is good, so is sharing your story. Good for you (therapy) and good for others as it puts a face to the problem. Too often, these problems are discussed in the abstract and people forget that real people at stake.
Oh by the way bgpappa If you want to know why the people will never get a penny and why our officials do not listen to us read " The creature from Jekyll Island " unfortunately It gave me a headache after I read It ! The author Is a man named G Edward Griffin .
Thanks, I will check that out. My thinking is it is trickle down all over again. If we give banks money, they will lend to everyone. We know this isn't true. And why encourage more debt?
And why give Gaza $900 million ?
Very true. I am ok helping others, but only after we help ourselves. Gaza needs help, but one year from now if we are in a Depression, we can't help anyone.
With the government owning 80% of AIG now, it made me think that the government SHOULD own these huge corporations-especially in the circumstance of owning the majority. Private ownership should not benefit so greatly from the government's "welfare" money. I had not see any of the AIG execs driving anything other than a Tempo.
I fthe government had owned AIG before, we would not be in the predicament. The "smartest" people in the Nation would have a say on the loans and, even though I don't always agree with certain politicians, it seems the decision for the greater good is always the ultimate choice.
Certainly a valid point of view. But I question how AIG go so big. No corporation should be so big that if it fails the entire economic systems fails as well. Don't we have laws against monolpolies? Well, maybe not a monoploy, but a failure of regulation - - - again.
Thanks for reading.
That's exactly what they should do, but we don't have a voice!!
We have a voice, but not enough of use it. Imagine if we stopped paying taxes because we disagree with the war and tbut he giving money to AIG. Radical I know, but what if we threw our insurance policies into Boston Harbor?
if you give the people each a million dollars the prices will inflate just as much. How about you read up on post WWI germany and they did something similar and people would have to bring wheelbarrels of money to buy a loaf of bread....
Why don't you read up on Post WWI Germany and understand what they really did, but your point regarding inflation is well taken. And there is real concern about the value of the dollar that has been mostly ignored.
My point is, we are spending the money anyways, I just think it should go somewhere differernt.
bgpappa,
This seems like a good idea until the money gets into the hands of the people.Debt is servitude and submission,it keeps many people doing things that they wouldn't do if only they had more money.There would be a coast to coast party and many a boss would be told in which orifice to place,that spreadsheet,french fries,invoice etc...As people from every socio-economic class decided it was now time to take an extended vacation or fly around the world in a hot air ballon.Joe six pack,formerly known as the pizza delivery guy, would be driving around in a in an H2 Hummer to deliver your pizza...eventually.We've actually dipped into a negative savings rate in this country and people are financing Happy Meals! Then the predatory capitalist would really come unhinged with a massive onslaught of credit cards to people with bad credit,18 year old college students...with no credit limits.I'm afraid the bailing out of the people wouldn't work because we'd spend our way into servitude again,build a few thousand more public storage units and fill them up with garbage.At least with our ever increasing poverty,the awareness of our meaninglessness to our non representing representatives is illuminated.I only hope that it is enough to inspire or agitate the apathetic masses to get involved.I'd give the party about three years(according to lottery winners statistics)and we'd all wake up with one massive hangover
Thanks for the comment.
I think those party's are going on now, in the Board rooms of AIG and General Motors. And they are asking for more.
If we are going to waste and spend billions of dollars, at least let the people go down happy.
But I think most people would actually pay off debt, or at least make purchases that would help the economy. Right now, the money is going out and there is nothing to show for it.
I know there are many people who believed the banks are controlled by Jews. Personally I don't believe this. What is your opinion on this matter. IE, blaming the poor economy on Jewish people. I am quite concerned because of what many people believe regarding Jews and banking.
I haven't heard a lot of people blaming Jewish people for the banks failing. But it is consistent with the racial tensions surrounding the country right now. 1930s hatred for Blacks and Jews is coming back.
For me, I blame greed and lack of regulation. I also blame personal responsibility a bit.
Obama has finally figured it out, we need permanent jobs. And where does jobs come from.....Corporations. No corporations, no jobs.
Bailing out people is just putting tax money back in to people hands and raising taxes on those who pay taxes, with no investment into an a payback. We need to invest into items with paybacks, and not just spend to spend as the stimulus bill has been doing.
Keep on hubbing!
My point was if we are going to spend billions, why not let people have a bit. Bush's stilulus didn't work and in fact hurt many. The bank bailouts haven't helped anyone but banks. The people deserve a break as well, and tax breaks for the rich isn't enough.
But your point is well taken, and thanks for the comment.
I will buy your give it to the people, because it is our tax money anyway. In one hand and out of the other. So that would make it even-steven, so it would be just like a stimulus did not even happen, except many who did not pay taxes would get money back. Is that fair. Sounds like robbery to me.
And the bank stimulus money was to let the big bank absorb trillions of dollar of debt, by absorbing the smaller failing banks. And the bank are paying back the money, with interest. Did not work? I did not like the bank stimulus, but it was done in much better way than the stimulus that Pelosi and Reid did. They just spent money foolishly and did not get anything back from it, except favors from people who put them in office. This is a crime within itself.
Keep on hubbing!
The banks did not absorb the debt, meaning that people still owe the bad debts and the banks will recover that money as well. Some have paid it back with interest, some haven't. But to give banks credit for anything right now after they over extended themselves, did not have capital reserves, and were a major cause of the financial meltdown in the first place. Individuals deserve blame as well, but the banks and the failure of regualtors deserve blame as well.
Thanks for the comment.
So who absorbed the banks that would go under, and the government would have to payed trillions of dollars on the FDIC of these banks. The larger banks absorbed the smaller failing banks. A lot of the debt is still there. But the banks absorbed the debts of all the failed house loans. If not where did the go? I do understand they underwrote these debts with other debts and sold a lot of them ot other banks and investors. But is was not a spending fanansy like the stimulus is. And the banks are paying the tarp money back with interest. This money should be paid back and spend like BO wants to. I think it is illegal, if he does spend it. It was not appropriated for his spending, and it should just be paid back. That would be one of the biggest consumer confidence building things he would do so consumers would start spending again.
And I agree regulators are to blame, too. Especially Bawney Fwank. He need to be removed from office. If he work for a corporation he would have been fired over this. We need to fire him.
The best way to pay the people back is to pay off the debt, so we are free from that dept. If you give it to the poeple, they will buy LCD tv, and the money will be shipped over seas.
Keep on hubbing!
Barney Frank is not a regulator, and the Bush Administration ordered regulators to allow banks to loan out of reserves, something that was not done before. Reserves are put in place to keep banks solvent. When the reserves went away, that is when the banks got into trouble. This is why Wells Fargo and other banks couldn't cash checks anymore, because they simply did not have the cash in hand.
But there is enough blame to go around, Democrats and Republicans, individuals, corporations. You don't mind if President Obama spends the money, as long as he spends it on what you want, not what he believes is best. You disagree with what he spending goals are, and to some extent so do I, I think the Tarp profits (interest received) should go towards Healthcare. But I agree with you, the principal should pay off the debt.
Thanks for the comment.
First, corporations are persons too (a "statutory person," anyway). They don't get to vote (yet), but they do get de facto control of our elections through contributions. They cannot be drafted or serve in the military, but when we go to war, it is invariably to "protect" US [corporate] interests in the region. The biggest corporations can even write legislation (through lobbying) that they themselves are able to ignore with impunity (because they have better legal teams that the DoJ--who does not bother trying to prosecute cases when they assume it will be too expensive to force compliance). They hire teams of accountants and perform shady tricks to avoid taxes when similar tactics would land a natural born person in jail. Since the 19th Century, the average US citizen was born with "citizenship lite" in comparison.
The latest round of bailouts is just another chapter in "Capitalism for the poor, Socialism for the rich"--Wall Street's favorite book.
Agreed, this is why people need to take the country back and I don't mean in a tea party type of way. I know, but I can dream.
Thanks for the comment.
Amy G 3 years ago
Amen.