Bail Out America Plan

    Along with 95% of America, I have had ENOUGH of these "plans to nowhere". I'm talking about the poorly planned, poorly executed rushes to give away our taxpayer dollars to predatory industries, corporate swindlers, Wall Street snake oilers, and all the other big businesses and cronies of the Bush administration. So, I've come up with a plan that may be the REAL solution to our economic quagmire. I propose that if we bail anyone out, we Bail Out America.

    The only people who can stimulate this economy are WE, THE PEOPLE. So here is the plan: Give $1 million dollars to each and every American citizen, including the disabled, calling it damages and reparations for what has been done by the Bush Administration. The money will be paid out in increments of $125 thousand every 6 months over 4 years. The program will then sunset. That money can be used by each citizen to buy back their homes, fix their cars, buy food for their families, and pay for the needs of their children. The money would have one irrevocable condition: no recipient could voluntarily quit their job or close their business for those 4 years. The penalty for voluntary quits or closure of businesses that were not closed at the inception of the program will be to empower the IRS to collect the tax on the ENTIRE $1 million, acting as a disincentive to closures and quits.

     There must be simple eligibility criteria: you must be a citizen of the USA at the date the program begins. Late-comers will not be included. They must not be CONVICTED prisoners of any jail or correctional facility. They must be 18 years of age and NOT a dependent of a parent or guardian. If disabled, they must be recipients of SSI/SSDI or pending approval by hearing. Job related disability must remain a coverage of workers compensation by the states. Changing jobs, getting a new job, expanding a business...all of these would be encouraged. Importantly, this will NOT impact eligibility or receipt of current SSI/SSDI benefits, Veterans pensions, or SSA retirement. What little we receive now would remain in place, just as what little wage earners receive now will remain in place. Of course, as businesses recharge, they can choose to increase wages.

     We will be able to suspend, not discontinue, subsidy programs such as Food Stamps, Section 8 housing, and even some costs under durable medical equipment, so long as controls are placed on regulation of those industries that have shown themselves to be predatory: the mortgage lending industry, the credit and banking industry, the insurance and medical industries. The money held back from programs that may no longer be needed during this time goes into the incremental pay out pot.

      It's not cumbersome. It's simple. It has no pork attached. It's sleek. I don't think it can create a recession or depression. And it IS financially do-able. Rescind the Wall Street bail money (for bad faith by the Wall Streeters). Rescind the banking bail money for the same reason, and suspend payment to Detroit. They won't need it if there are 305 million millionaires in the USA over 4 years.

      As each Cabinet head goes through each line item, put that into the Bail Out America pot.  Who couldn't work their homes out of foreclosure with that? Or buy or fix their cars? Or find a bit to give to charities? Or infuse  all the manufacturers with capital earned from sales? Some claim that my Bail Out America plan would create inflation and wreck the mortgage industry. Why? If the plan was structured as incremental, $250,000 a year would not be enough to destroy this or any industry. It would, however, be enough to encourage very low rates for interest on just about everything. I would think that many persons would still play the market, stash money into 401Ks, start savings, etc. Of course others could be victims of scams as well. How exactly is that any different than the here and the now of the mortgage, banking and scamming industries? Supply and demand would be rebalanced, with oversight and regulation on those who have already shown themselves to be untrustworthy, such as the oil and gas industry, the credit industry and Wall Street.

     The Obama proposal calls for $800 per household to try and stimulate the economy. This is less than a half measure. You see, I think that it does matter whether the amount is $800 or $1 million. The economy will have a better shot at righting itself with the larger amount paid out in increments than with the paltry amount of $800 being proposed along with a ton of pork for lobbyists. I live on SSDI. What did the $300 I received (government discrimination of the disabled lives) do for the economy? Or the $600 you received? It all came at a time when the "gas crisis" drained everyone. And there wasn't a crisis at all! If I received $125K right now, a large amount would go to pay off my mortgage because I am at high risk of losing my home. However, not all of it could go to the mortgage. There is still the cost of heating, lighting and food. Not a bit of these basics has gone down, despite the end of the gas crisis, upon which everyone claimed they needed to raise prices to cover "costs". Please.

          The mortgage industry, as with all other industries that prey upon the people, would always survive. They might just have to reduce their bonus plans for their CEOs, but so what?  The next generation will still be able to buy a home but this bail out would keep those interest rates fixed and low. Do not focus on just one  industry. I'm suggesting that EVERY industry will benefit because every industry will be accessed or accessible by everyone. However, a real, bonafide Bail Out America can't have any impact unless the amount is enough to enable Americans to participate in the economy. People are still going to look for the lowest prices and the most for their money. The only difference is that MORE people would be able to participate in the economy. That should go a very long way to eliminating poverty in this country. The secondary benefit will be in the lack of government incentive to keep raiding Social Security (which is why it's always in "crisis"). The Social Security tax could even be slightly increased in order to bolster ONLY that program.

      Incremental pay outs would not and could not create an inflationary economy simply because those increments are not enough. They are certainly not enough to destroy mortgage companies, since homes and taxes are generally far higher than the increments. As for housing, you tell me where you think you can find a stick built home and property, taxes and all, for under $125K. NOBODY is going to sit on that bail out money except the very, very rich. And they already paid cash for their homes in the first place, thus establishing that the mortgage industry can and will survive people being able to pay higher down payments or extra on their principles.

     The majority of Americans right now fall FAR below the "magic" $250K per year earned income status. What we have right now is an economy almost identical to Mexico: the very, very rich and the very, very poor - with nearly ZERO middle income earners or class. Equalizing the economy with incremental pay outs will make a huge impact on restoring the middle class of America, simply by enabling them to "buy back" that status. That "buying back" would FEED the mortgage industry and encourage competitive rates. It would also force the credit industry as a whole to rethink their usurious and predatory schemes, reducing credit card debt and dependency overall.

     Nobody has a crystal ball. However, I do know that you can't stop a train by throwing a balloon at it. We are on a runaway train of economic damage. Rather than derailing the beast, or letting it run amok, why not think of rerouting it toward an upward hill? The incremental influx of bail out payments to Americans would very likely slow this poverty train, allow Americans to reinvest in their own futures, stimulate the economy by increasing demand for production, save back billions in government programs that may not be so badly needed (like Food Stamps) and offer a sort of "time out" for the states to develop their single payer medical and health care programs, thus forcing the insurance and medical industry maggots to quit feeding on businesses and individuals. Yes, Medicaid and SCHIP would remain in place but competitiveness in the medical and insurance industries faced with single payer mandates could drive costs down, thus saving dollars in a program that has been inflated by provider greed.

    The success or failure of this plan is measurable. Two years after it begins, we look at the GNP, the unemployment rate, housing rate, growth or start up of new businesses, etc. We look at all the things that are measurable, and we look at how much has been trimmed away from governmental budgets. Without any exceptions, exactly 4 years after the plan begins, it will sunset. We will know by that point how much more we have succeeded by doing the work ourselves rather than throwing it at bloated and irresponsible entities. Furthermore, Congress shall not give itself any form of raise or increase in benefits for this entire 4 years. They shall get nothing until they have earned back our trust. This is not unreasonable; this is common sense.

     And may I point out just one other fact? The United States government has already been making incremental pay outs for reparations for almost 60 years. The idea was to buy the people they paid into extinction (that's how it first started). Later, it became Congressionally mandated. Ladies and gents, I give you the Navajo Nation, Alaska natives, and all per capita recipients. The only codicil was that all of the welfare programs remained in place, so there would be a disincentive to education and employment. There was never a mandate to work (still isn't) or build businesses. Mortgage lending was inapplicable because HUD builds all the homes and the rent on the homes is under $100 a month. They are a microcosm of total government support.

          It didn't exactly work the way the government planned, though. The Navajo Nation, in fact nearly every tribe in America, beat the system by becoming industrious. Who owns all of the casinos outside of Vegas and Atlantic City? They also developed their own water and utility companies. And mortgage lending was never harmed by those who chose to live off the reservations. Their per capita payments went to cars, their homes, food, etc. Indeed, many nations developed their own banking, construction, and manufacturing industries. The catch is that you must be Native American to benefit.

          Incidentally, I seriously doubt that around here where I live we would have our one Wal Mart, three grocery chain stores and various gas stations, much less the motels and other services, if it were not for the regular distribution of the per capita payments. Hurt the economy? Not hardly. It's just a Bail Out America program, in increments, on a smaller scale. And, it works.

     So now I am asking you to join this action. If you like the idea, see room for improvement or see potential pitfalls, lets talk about it. If, however, the plan is fundamentally sounder than bailing out big business or accepting that pitiful $800 "stimulation", then let's work to get this in front of the noses of our fellow Americans. Let's push it into the spotlight shining on those in Congress touting themselves the financial and economic wizards who know what you and I need (as if...) Let's make it part of a change that we can accomplish by petitioning. Above all, let's look at who really makes this country work: We, The People.

Recent Signatures