Posted by
Christopher Parisho on Thursday, December 04, 2008 12:49:09 AM
With every day that passes we hear about more companies and whole industries lining up to get bail out funds from the Federal Government.
If anyone needs bailed out it is the citizens of this country.
We are the ones who at most risk if the economy gets any worse. For the $700 billion dollars initially budgeted for the mortgage bail out each man woman and child (305804120 of us as of the writing of this post, http://www.census.gov/population/www/popclockus.html) could get a bail out check of $2289.05. A household of 4 could get $9156.19. My family of 6 would get $13734.28.
How does that sound? Makes the stimulus checks look like a drop in the bucket, doesn't it?
Now I really don't support the idea of giving us all a bail out check. My real point here is to show, in a somewhat sarcastic way, just how much that portion of the bail out plan will cost each of us. That doesn't include additional bail out funds that may yet be given out. Even if every penny of bail out funds are loans, we tax payers are risking quite a lot on the gamble that the loans are paid back in full, if at all. But as the backers of the loans we have no legal right to seize assets of those who default.
The latest is the Auto Industry Bailout, or as they prefer "Loans", or "Lines of Credit". At $25 billion, it will cost each of us an additional $81.75 ($327 for a family of 4, $490.51 for a family of 6). For my family that is a months worth of groceries or utilities being taken from us (if passed) and handed to 3 corporations who are not producing products I'm interested in buying. The other auto makers have beat them in the production of quality products for a better price. Bailing them out is just delaying the inevitable. So instead of going bankrupt in 2009 or 2010, they may do it in 2012 or 2015.
The politicians who are passing these bail out bills, such as Sen. Debbie Stabenow (D, Michigan) say the Auto Industry Bail Out seems small. Yeah, to them it might. If I made $169'300.00 a year (base salary for a member of congress, http://www.thecapitol.net/FAQ/payandperqs.htm), or more depending on their position in the Federal Government and other private sources of income, then it might seem small to me too. The first bail out of $700 billion has me risking, against my will, $13734.28, or to put it in perspective about 1/3 of my annual household income.
I say if the politicians insist on passing bail outs, then they need to pass a bill cutting their pay to $1 for every year from this point forward for as long there are bail out "loans" which are not paid back. Then at least we would be getting our monies worth from them.