So, I admit, I (Ann) don't know jack about the economy, but this is a facebook message I received from a friend of mine and fellow theologian named Chris... I'm game!
"To all those in Washington who are not hearing the American people,
I have yet to talk to anyone who is actually in favor of the government bailing out all of these massive institutions. Probably, because I haven’t talked to any CEO’s…just average Americans. We all agree that something needs to be done, but what?
If the government has their heart set on giving out that much money, I have some thoughts on what to do with it. So here is my plan…and why not put it on facebook, this is where the real America congregates anyway.
My Government Bailout Plan
Compile a list of US homeowners. Narrow that list down to just their “Primary residence,” no investment property or rental property. Then narrow that list to just their 1st mortgage, if they have more than one. Then the government pays that off. Also, go back over the last 6 months and see how many of the foreclosure would fit the requirements, pay that off and return it to the foreclosed owner. This would probably cost less than $700,000,000,000.
This would create cash flow for the failing financial institutions while ensuring that our property is owned by the people and not the government. The relief would be given to the majority of the US and not to a comparatively small number of large institutions. In turn, this would generate cash flow amongst the people of the US for investment into small business, retail, charitable organization and our own retirement (since Social Security is failing as well). It also increases tax revenues for our country as the government will receive much of the money that has been written off each year by claiming the interest paid on our mortgages.
Then as sales tax revenue, fuel revenue and increased income tax (from mortgage interest) comes in, the government adjusts its size to accommodate the amount of money we pay it. By this point many of the American people will have been empowered by more financial resources to handle many of the social problems that we have looked to the government to solve for us.
There is something to be said about the principle of “the year of jubilee.”
These are the thoughts of an average American and I admit that I am no economist. Who else has a plan?"