Wednesday, October 01, 2008

Do the Math Before You Start Blowing Your Horn

I've recently received an email that is/was circulating the Intarweb regarding the Grand Bailout Scheme.
I have a couple issues with the retasking- Nice idea, poor math skills.

Be sure to read the notes at the end.

The Email: (BTW- thanks Roach and BN)

> Hi Pals,
> I'm against the $85,000,000,000.00 bailout of AIG.
> Instead, I'm in favor of giving $85,000,000,000 to America in a We
> Deserve It Dividend.
> To make the math simple, let's assume there are 200,000,000 bonafide
> U.S. Citizens 18+.
> Our population is about 301,000,000 +/- counting every man, woman and
> child. So 200,000,000 might be a fair stab at adults 18 and up..
> So divide 200 million adults 18+ into $85 billion that equals
> $425,000.00.
> My plan is to give $425,000 to every person 18+ as a We Deserve It
> Dividend.
> Of course, it would NOT be tax free.
> So let's assume a tax rate of 30%.
> Every individual 18+ has to pay $127,500.00 in taxes.
> That sends $25,500,000,000 right back to Uncle Sam.
> But it means that every adult 18+ has $297,500.00 in their pocket.
> A husband and wife has $595,000.00.
> What would you do with $297,500.00 to $595,000.00 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 parent's medical insurance - health care improve
> Enable Deadbeat Dads to come clean - or else
> Remember this is for every adult U S Citizen 18+ 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 $1000.00 ( 'vote buy' ) 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 18+!
> 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!
> How do you spell 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 DC
> And remember, The Birk plan only really costs $59.5 Billion because
> $25.5 Billion is returned instantly in taxes to Uncle Sam.
> Ahhh...I feel so much better getting that off my chest.
> Kindest personal regards,
> Birk
> T. J. Birkenmeier, A Creative Guy & Citizen of the Republic
> PS: Feel free to pass this along to your pals as it's either good for a
> laugh or a tear or a very sobering thought on how to best use $85
> Billion!!

Nice try-

Birkenmeier has a nice idea but appearently he's like the math geniuses
that run AIG, Lehman, etc...

85,000,000,000 divided by 200,000,000 is $425, not 425,000.

Even if you use the big number for the Overall Bailout of $700,000,000,000,
you only get $3,500.

No mortgage payoff, no new car.


TBG, distressed.

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