my stimulus package
By American Girl in Italy on February 6, 2009 at 10:00 PM in stimulus tax package
I decided to write my own stimulus bill, since everyone’s doing it these days. I admit, once you take the task of spending a trillion dollars, it gets kind of fun. I can kinda see why there was so much pork in the Obama bill, it is fun spending *other people’s money*.
My plan focuses on fixing the problem that started this whole mess, and providing immediate relief to the people. If the government is serious about providing relief, and stimulating the economy, I don’t know why they proposed the plan they did. There was a lot of pork benefiting government employees, a handful of people, and misdirected projects (coupons for tv??). They only allotted a small amount to be spent in the next 18 months, and there were way too many pet projects, in my opinion.
If I were President, this is what I would propose:
Homeowners
I would bailout the homeowners who have defaulted/are defaulting on their mortgages. Pay off the past delinquent amounts to the banks, and tack the sum on the end of the homeowners mortgage loans. I would also lower the interest rates back to the subprime rates, so homeowners can afford their original loans, and keep their homes.
This would help the millions of homeowners who have lost, or are in danger of losing, their homes. It would get money flowing back into the banks. This would make cash available again, and get credit flowing. It would take a huge burden off homeowners, and relieve the paradox of thrift – we need to move people from saving to spending. This would get money flowing back into shops/businesses again. This would also help calm the over-all panic, and stop/slow the devaluation of properties in neighborhoods with abundances of foreclosures. One in five homes for sale are due to foreclosures, and there are currently 19M homes and apartments sitting empty. We need to stop the values from falling further, and stop more people walking away from their homes.
There are arguments to be made for NOT bailing them out, and we can blame people for purchasing homes they couldn’t afford, and blame banks for approving faulty loans. But bottom line, when the housing bubble burst and property values began to decline, the sub-prime mortgages became delinquencies and defaults, and that is what got us into this mess. So, it seems to me that this is the problem that needs to be fixed first.
I’m with George Bailey on this one, “Is it too much to have them work and pay and live and die in a couple of decent rooms and a bath?” I think it makes more sense to keep people in their homes, and keep the money flowing, then to just blame them for buying homes they *couldn’t afford*. And it is definitely better then making squatters out of former homeowners. And yes, it does use tax payer dollars to bailout people who defaulted on their loans. But the Obama plan wanted to use tax dollars to purchase condoms and prevent STDs…
$250 Billion (assume 20 M homes, with $10K debt per home, with $50 Billion to spare)
Daycare
I would provide money to states to set up daycare programs for people who need a hand right now. Many families and single parents can not afford day care for their kids. Some have lost jobs, or need to have two income homes. This would create jobs in day care, and would take a huge burden off working parents. Perhaps they could be not state run, but private day cares in companies. So, if you have a job, your company can set up a day care, or many small companies can join forces, and set up a day care for their employees. This still needs work, but I think something can be figured out to provide relief.
$2 Billion (figure proposed in Obama plan for child care subsidies)
Transportation vouchers
I would set up a program for the states to reimburse carpoolers, or provide bus or metro tickets. This is good for reducing traffic congestion, gas consumption and pollution. It also gives a little financial help to people who have to commute for their jobs. And perhaps allows someone, who is jobless, to search for/accept a job further from home, if need be. And it puts money into the mass transportation industry, keeps people in their jobs.
$650 Million (money Obama allotted for TV vouchers)
Healthcare
I would give people who have lost their jobs/without healthcare a $500/$1000 voucher for healthcare. Keeps clinics and hospital workers working, and people covered in case they get ill. This is just a quick solution, to get through this period of economic downturn.
$50 Billion (47M without healthcare/$1000)
How much would a Clinic on Wheels cost? I might want to set up a program for that, too. Big vans, with doctors and nurses, that drive to poorer neighborhoods and elderly neighborhoods, to bring medical attention to the people. There could be a small fee for the visit… I wonder what the cost of a program like that would be. They set up in a neighborhood, once a week, for visits. And in rural communities if needed.
$250 Billion (figure Obama set aside for income transfer payments)
Infrastructure
I would give money to fix the infrastructure which will create jobs, fix our falling bridges, and pot-holed roads, and weakening pipelines. And I would spend it now, and start fixing the problems now. Everyone wins on this one.
$60 Billion (double what was proposed by Obama)
Tax cuts
I would give tax cuts. I don’t have a clue about how this works, or any details, or even how it really helps, but people seem to like it. I need my team of smarty-pants people to help figure this one out. Where is Hillary when you need her?
$40 Billion (double Obama’s proposal)
Literacy Program
I would set up Books on Wheels programs. Creates jobs, and promotes reading. We used to have this program when I was growing up, and lived in the boonies, and I loved it. A library on wheels comes to your neighborhood once a week, and you can check out books. Reading is fun. :O)
$650 M (money Obama wanted to spend on new cars)
Teachers and Schools
I would give states money to hire more teachers, and help schools with after school programs. Education is key for our future. And after school programs keep kids off the streets, off their computers, and out of trouble.
$66 Billion (figure Obama set aside for universities)
Stimulation Spending
I could give every single American $1000 and spend $300 billion. Or, I could give $2000 to every American over 18, and spend $420 Billion. But instead I would give everyone over 18 a $500 or $1000 debit card, to use as they want. This would stimulate the economy, because everyone would be shopping! And I think I would dole them out in 5/$100 cards, so people could gift them away, or donate them to charity if they don’t need them. This puts the cash in hands of people who need it, and would promote stimulus. Could be spent on food, gas, clothes, or tvs, whatever.
$200 Billion (guestimate)
I have no idea how much my Stimulus Package would cost, in reality. But, using the numbers I assigned, based on the figures used in the Obama stimulus, I spent: $919,300,000,000, $919 Billion.
I would like to understand the details/benefits/consequences of my stimulation spending debit cards ($200B) and whether it would actually benefit long term. If not, I would replace it with green job creation. From what I understand, inserting $200B into the economy would help to stimulate the economy, and also benefit the benefactor. It seems like a win/win, but what are the benefits long term? Does it really help? Does anyone know?
I just did this for fun, and am not proposing this *be* the bill. And, obviously I don’t have a team of economic advisors, or experts to help with *my* plan. I just think the administration can come up with something better than their original pork plan. I think it seems pretty obvious the *people* were not the top priority in their plan. If stimulating the economy and providing relief was really their objective, I think their proposal would look a little more like mine.
So, again, I just did this for fun, to see what I could come up with. I have some pet projects in there that could be cut, but at least they involve education and healthcare. Do you like any of my ideas? Are they all stupid? What would your plan look like? Do you have any ideas for creating jobs and providing relief? How would you propose getting out of this mess?
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