How to fix the entire U.S. economy faster -- and cheaper -- than Obama

There's a wondrously simple U.S. economic recovery plan bouncing its way all over the Internet this week to fix the recession, end unemployment, boost the banks, refinance the automobile industry and repair the housing crisis all in one bold stroke -- and at a fraction of the cost of the Obama administration's complex, grandiose and costly government spending plans.

Of course, this new idea plopping into and flashing out of thousands of excited e-mailboxes all over would never work politically because it wasn't designed in Washington like, say, the tax code and therefore is quite simple. Nor would it grow the size of the federal government, which would be unacceptable to many in the federal government.

Here's the idea and the math as devised by a devilishly clever, now anonymous Internet author:

Take the 40 million or so American workers over age 50 and give them each $1 million tax-free. Yup, just put that money into private hands. This seems like a wonderful idea to those whose hands are over age 50. But, of course, there's a catch. Three catches, actually.

1)  Everyone receiving $1 million must immediately quit their current job. Overnight, that opens up 40 million new positions, which takes care of unemployment and is something like 11 times better than the number of jobs the president has promised to create through government during the next couple of years.

2)  Everyone receiving $1 million would have to buy a new car, preferably American-made. Forty million new cars means an awful lot of jobs all across the nation's automobile industry and ....

... its suppliers. No car czar, bailouts or money rat holes necessary then. And GM could keep its own president if desired.

3)  Everyone receiving $1 million would have to pay off their home mortgage or buy a new house, thus pumping fresh lendable private funds back into the banks and spurring new home construction with all its accompanying new jobs in other sectors, not to mention those workers' renewed income taxes, which could help finance, say, healthcare reforms.

Even after those requirements, everyone over age 50 would still probably have several hundred thousand dollars left. Pressure on Social Security eased, maybe even reduce those payments so the government could cut young workers' withholding, give them more disposable income to spend and save.

American economy fixed. Total cost, according to this Internet formula, $40 billion, which seems like chump change in these first 100 days.

Alas, the Internet author forgot a few 0's. Total cost would actually be $40 trillion. But it sure was fun while it lasted. Pass it on anyway; the way Washington numbers are growing exponentially these days,  even that price tag could soon seem cheap.

 -- Andrew Malcolm

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Comments

[Pom Pom Girl]

How Obama Can Help The Economy

The Stock Market and the jobless rate continue to slide into negative territory since Obama's election. Both are voting No to Obamas various schemes and he continues to not get it. Irresponsible federal spending, Cap & Trade programs that will hurt manufacturing, increased taxes that will stifle small business job creation, threats of more regulation, planned Federal Judge appointments that are not favorable to tort reform and a host of other ideas are not the sort of things that make the business community feel optimistic. In addition, all of Obamas talk of big changes and government solutions mean that business can't clearly plan so they wait, shrink and posture their business plans in a defensive manner.
The fact that Obama either does not care or does not understand that he is scaring the hell out of the U.S business community is nothing short of amazing, given that he seems like a bright fellow.

A promise of fiscal responsibility, predictably constant taxes, no cap & trade schemes, judicial appointments that are not activist in nature, and a level or reduced capital gains tax is what will turn the market around and get business hiring again.

[Jeff B.]

There is a real idea on how to fix the economy faster and cheaper than Obama.

We just have to do what we did during the depression of 1920. The Federal Reserve and the government were passive toward the economy; the government reduced spending and taxes, and the economy recovered in about 18 months (a year and a half).

Cut government spending, bring the troops home, cut taxes, and allow the readjustment the market needs.

Paul Krugman doesn't talk about the depression of 1920, does he?

[Grey]

If you are under 13 years of age you may actually have believed that 40,000,000 x 1,000,000.00 =40,000,000,000.00

[Weew]

but but but that plan would not empower government and entrench a dependent class (and therefore the politicians who pander to said dependent class for votes). It certainly doesn't fit Obama's notion of "neighborliness" now does it?

Therefore it will never happen.

[JasonS]

Thankfully there's an even cheaper way to fix the economy and unlike the fairy tale mentioned in the article, this one would actually work.

Vote as many Democrats out of Congress in 2010 and then vote for Ron Paul in 2012.

It really is as simple as that.

[J. Jordan]

...and everyone over 50 is unemployed. hmmmm.
Don't think that's going to work.

[Neal McCollom]

I'm there!!!! Where do I sign up??

[Jake]

yeah and screw inflation! just print magical economy fixing pieces of paper and give them to everybody!

[Lavon Perrin]

Hey this sounds good except your math is incorrect. If you give each person 1 million dollars, that means only 40 people would get the money. There fore only 40 new jobs and only 40 new cars bought and only 40 houses paid for. This is simply math.