A different bailout plan?

Jan 16, 2010 Posted Under: economics

A friend and I were talking about the bailout, and I mentioned an idea I’d heard from a couple of the late night comedians …

Instead of giving the $1.5 Trilliion to Wall Street, the banks, and Detroit, we could have given it to ourselves — it would have been about  $50,000 per citizen.  (My friend suggested $100,000 low interest loans — perhaps even better?)

A lot of this would have saved homes from foreclosure and credit cards from default, going straight back to the banks.  The rest would have made its normal 6-8 times traversal of the economy before it got taxed back out of circulation.  Many new purchases of cars and every other imaginable thing would have spurred us out of the recession smartly.

As it is, we have managed the largest bonus plan in history to the fewest number of the smart thieves, the engineers of the debacle.  And left our, and the world’s,  economy stalled out for  probably  another  ordinary economic cycle  (7-15 years?)

It doesn’t really work at the nickel-and-dime level, like Bush tried.  But it could work like gangbusters with some real money.

What do you think?

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