Debunking the "We Deserve It Dividend"
I'm sure anyone out there with a basic understanding of arithmetic can see the problem with the following e-mail forward that's making its way around the Interwebs:
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 improves
• 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 know how to use the $85 billion We deserve the ‘We Deserve It Dividend’ more than the geniuses at AIG or in Washington DC.
And remember, The Family 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.
Well, before you start imagining what you might do with $425,000, or even $297,500 ...
... you might want to check your decimal places.
$85 (updated) billion million divided among 20 million Americans would only result in a payout of $425 (before taxes), according to this analysis by the urban legend site Snopes.com.
They also point out that even giving every American a share of the (updated) $700 million billion proposed (and rejected) bailout would only come out to about $3,500 per person. Not enough to pay off many mortgages, I'm afraid.
