by Ron McBride
There are 49,122,624 Americans on Social Security and Disability in
this country. If the rumors about the Obama Stimulus Package are true,
they will not be eligible for this Stimulus Payment. This is approx 50
million Americans who are more in need than any other group, and they
will be discriminated against. It would be a crying shame if this is
true. These are the backbone of this country.
Word is that the Obama plan calls for a tax rebate to approximately
150 million workers making less than $200,000. The tax breaks would be
worth $500 for individuals and $1,000 for couples. Secondly, any
relief for consumers won't be available till March/April at the
earliest as the new President tries to get his near $800 Billion
stimulus package (over 2 years) through congress.
Obama's advisers said that they would not duplicate the rebate checks
sent last year. "Most people spend their 2008 Stimulus check on
services, merchandise or just repaid debts", claims many on the
Republican side of Congress, but I say so what, money is money and
when it is spent for any of the preceding it is going to help the economy.
At moneycentral.msn.com they estimate that the average debt per
American household with at least one credit card was $8940 in 2002,
the last year for which figures are available to me. I haven't
included mortgage or vehicle payments or debts here, just the
revolving credit debt.
Commonsense tells me that if I owed $8940 in Credit Card Debt, and the
US Government in its wisdom were to give me $7,500 in a stimulus
package, then I could pay this debt down drastically, thus saving me
monthly payments and loads of interest. The resulting payments made on
these cards would save the issuing banks, and reduce their exposure
and default rates. It is a win-win situation.
I believe that a stimulus pkg that amounted to $7,500 per household,
regardless of income, would be the main engine to drive our economy
back onto a positive track.
We handed out $750 Billion to banks and Big Business (the second half
was released yesterday Thursday) and we the people, are in worse shape
than before. Now they are discussing another $825 Billion to revise
the economy. And yesterday new worries over Citigroup and Bank of
America surfaced, they are already lining up and holding out their hands.
By US Census estimates there will be 113,567,967 households by the end
of 2009, when mutiplied by the suggested $7,500 we get an amount of
$851,759,752,500. This is doable without a doubt just look at the
previous paragraph. It is equivalent of the Corporate handouts made to
Big Banks and other Big Business entities.
Even if only 50% is used for repayment of debts, the remaining 50%
would be used to purchase things either wanted or needed for the
household, thus further stimulating the economy.
Based on a standard multiplier of 6, which most economists use, the
"People's Stimulus Package" (another entry under Economy) would
generate $5 Trillion for the economy.
In addition to this one time Stimulus Payment, I believe that we
should formulate anti-usury laws that will regulate the Credit Card
companies and the Banks that issue them... I have seen interest rates
of 28.99% right here in Illinois, it may even be higher in other
states such as CA or NY. There is no reason on God's green earth for
anyone be it credit and loan companies or Federal and State Banks to
charge more than 12-14%. Put a stop to this white collar crime, pass
the laws and regulations needed, then enforce them with jail time for
those who violate the public trust.
Perhaps we could establish special bank accounts for each household
that would receive the Stimulus checks, and the bank would then issue
a special debit card for use of the recipent. The reason for this is
that only products made here in the USA or from other domestic
manufacturing companies would be elgibile to be purchased with these
special Debit Accounts. It wouldn't cause a much bigger workload, and
banks who recieve help with their liquidity and benefit from the use
of OUR dollars at the same time.
It is on the backs of the poorest and middle class Americans that this
recession (we are toying with a depression as well), is hurting the
most. Many of these people do not make enough to even file an income
tax form, I know my wife and I are two of those. We are not only the
history of the last 6-9 decades, but we are the foundation of America,
it is our Social Security dollars that Congress has siphoned off over
the years, and spent on their pet pork barrel projects. It was our
sweat and labor that provide the foundation for the workers today who
receive many times more income than we did at the same age.
We have given out 350 billion (estimates are that with the additional
incentives it will amount to 8 trillion dollars) to banks who not only
didn't need it, but who rub our faces in it by taking espensive
corporate holidays and paying ridiculous salaries to executives who
basically fill a chair and figure ways to screw the average citizen
out of a few more pennies.A little known TARP provision provided banks
with a $250 billion tax break (You want proof?, check Pg 53).
Appropriations Committee chairman, Representative David R. Obey,
Democrat of Wisconsin, said that the bill would create a board to
oversee how the stimulus money was being spent and that money
allocated under the recovery bill would be tracked on a new Web site.
By all means setup a strong oversight system to ensure that American
dollars remain in the hands of Americans, not in off-shore accounts.
Also there should be public reports provided to the American people
that not only keep them informed of what is going on but couple it
with an education program on how to better care for ones money and
credit. I believe that the accounting of TARP and other rescue
measures should be included in the aforementioned public reports, not
in legaleze but in away that the average person could understand, this
alone would encourage people to look at thier own expenditures and
earnings and gain better control of their family finances.
Lets provide $7,500 to every household, regardless of income,
everyone, let us allow them to bail not only themselves but our
country out of what promises to be a decade of recession and yes even
a depression is possible.
I just dug out and re-read "The Crash of 79" by Paul E. Erdman, it
does an excellent job of presenting how big banks work, and is quite
entertaining as well. Read it you will be amazed.
But back to the Stimulus Package, increase it to $7,500 per household,
do it NOW, and then guide the American people as they make the CHANGE
that President-elect Obama promises, happen.