Saturday, March 21, 2009

Economics

There is so much discussion about what the government can and can't do for corporations and Wall St. companies. The amount already spent buoying up these companies is quite staggering. I'm not sure what it's up to - but doing a quick internet search, I see that in October 08, the estimate was already at 5 trillion. Now, that's 12 zeros. I pulled out the calculator and divided it by 300 million (US population). $16,666 each. So, it's probably higher now. Why not just give EVERYONE a million dollars? Forget bailing out the companies. Just put a million in everyone's account. What would happen? You can bet that a lot of people would buy a new house, or a car. Detroit - saved. Let's say they also made a rule that prices could not be raised for a year from their current rate. People would be spending in no time if they were millionaires.

What would you do if you suddenly had a million, tax free? Would it still seem like a lot of money? Would you travel, or save, or go on a wild spree? Lump sums have a funny way of quickly disappearing. But in this case, wouldn't that be a win for the country's economy?

1 comment:

Anonymous said...

WOW! Read inflation.