I’m against the $85 billion bailout of AIG. Instead, I’m in favor of giving $85 billion to America in a We Deserve It Dividend. To make the math simple, let’s assume there are 200 million bonafide U.S. citizens, age 18 or older. Our population is about 301 million-plus, counting every man, woman, and child. So 200 million might be a fair stab at adults 18 and older
So divide 200 million adults into $85 billon and that equals $425,000. My plan is to give $425,000 to every person age 18 and older as a We Deserve It Dividend.
Of course, it would not be tax-free. So let’s assume a tax rate of 30 percent. Every person age 18 and older would pay $127,500 in taxes. But it also means that every adult would have $297,500 in their pocket. A husband and wife would get $595,000.
What would you do with $297,500 to $595,000 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 parents’ medical insurance—health care improves.
Remember, this is for every adult U.S. citizen age 18 and older, 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 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.
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, the 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, D.C.