Monday, 08 June 2009
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Bail the Citizens Out!
I just did a very quick calculation and I am sure this concept will stir quite a lot of debate but it would solve the economic crisis tomorrow.
Instead of the 30 plus billion dollars we gave to GM before they slid into bankruptcy we could have given everyone in the USA 1 million dollars with the stipulation that they bought an American automobile.
Yikes that is one-tenth the cost and it would get the economy off of life support as well as save GM, Ford and Chrysler.
Is this a naïve solution? Or is the solution so simple the geniuses in Washington could be overlooking the obvious?
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About the Author
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- From: Gentemann@xanga
- Name: Gerald
- About Me: After working globally for both McCann Erickson and BBDO Worldwide in more than 26 countries I started a mobile marketing consulting firm called Mobilize Worldwide for Fortune 500 companies, helping them to take advantage of the power of mobile devices. Mobilize starts and executes every assignment with the assumption that there is a tangible business goal to achieve and that our communication strategies must align with the business objectives of our clients.
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Comments (14)
if we give everyone a million dollars, would they continue to work anymore? im sure there are many other things that make this idea impossible..
perhaps something less than a million dollars is good..
It is a naive solution. (sorry)
good point...I think it would cause chaos...how about a cool 100k?
@TofuPanda@xanga -That would destroy the monetary system.
Is it not destroyed already?@FireYourBoss@xanga -
That's okay...please elaborate...why is it naive? My colleagues in banking believe it is naive to continue bailing out failed businesses. The tab must be paid by someone.@der_lila_Stern@xanga -
@TofuPanda@xanga - haha, agreed!!! people are freaken lazzzzy
@TofuPanda@xanga - Our unemployment rate would shoot up to 50%, guaranteed.
Here's are a few reasons why that wouldn't work.....
1) Giving everyone $1 million would devalue the currency. The laws of supply and demand can't be ignored. Demand would far outstrip supply and as a result, the prices for everything would skyrocket to negate the effect of having the extra money.
2) GM's problems go beyond no one buying their cars. Their system is broken and needs serious overhauling. They needed to go into bankruptcy last year instead of begging the Govt to carry them. This is what years of fighting the future of higher mileage quality cars resulted in. Plus with the devalued currency from #1, those extra sales wouldn't make much of a difference anyway.
3) We have bigger problems than GM such as AIG which has sucked $200 Billion+ from the Govt coffers.
@Gentemann@xanga - If everyone was given $1 million, the cost of everything would go up proportionally. It would make the debt that people already have look small, but ultimately it wouldnt do anything.
I have mixed feelings about all of the bailout plans. Letting all of those businesses completely fail - and thus losing all of the jobs - is a scary thought as well.
Thanks for the reply and your thoughts on the matter. The whole thing is troubling and most people have no answer and so we are all forced to simply accept whatever the Congress chooses to do @der_lila_Stern@xanga -
Personally I love it.
MATH FAIL
$30,000,000,000 ($30B)
300,000,000 (300 million Americans) = $100 per person.
What's got me isn't the auto bailouts so much as the bank bailouts. You don't bail out the banks, you let them go under as a lesson to all the reckless investors out there and let the FDIC do its job. That's what it's there for.