My step Father, a naturalized citizen of the United States shared with me the following letter he sent to President Bush on Thursday. We rarely agree politically. As I usually point out to him, “he doesn’t know what he’s talking about.”
At any rate, his letter is insightful and offers a different perspective on the magnitute of the bailout needed and the best way to get there.
Subject: 700 billion “rescue plan”
Date: Thu, 25 Sep 2008 12:29:06 -0400
Dear Mr. President,
There are roughly 200 million adults in the United States. Dividing 200 million adults into the current super-complicatedÂ 700 billion dollar “rescue plan” amounts to $35,000 per adult. Why not simply send each adult a check for $35,000 which would be taxable at, say, 30%. Thus, 210 billion would flow right back into the treasury leaving a net outlay of 490 billion.
In this scenario single adults would receive $24,500 eachÂ after taxes, a married couple, for example,Â would get a netÂ $49,000. All these monies would flow directlyÂ through, and relieve,Â the presently stressed financial systemÂ by way of consumer deposits and new investments.
The resulting never-before-seen economic boom would wipe out the 490 billion debt through surging tax receipts and this “economic crisis” would be history within a few months.