William Thien

Talk of Another Stimulus Package? Here is My Stimulus Package.

Posted on: August 24, 2011

There is talk of another stimulus package, conjecture in the news. To me this is an interesting prospect because when a previous stimulus package was proposed I wrote to my elected officials and also telephoned them with some interesting numbers, and my elected treated the numbers with complete disregard, almost as if my elected were on a tether which lead directly to the banks and large insurance companies, who after receiving the stimulus were giving their management $1,000,000 bonuses just six months later. I could hear them partying in their offices shouting, “Suckers!” Blowing on party favors, inhaling helium balloons.

It occurred to me at the time that the amount of money proposed was such a huge sum and it was going to such a small segment of our country’s businesses, primarily banks and insurance companies (primarily in New York’s financial district), that it was really just a special interest favor. Banks and insurance companies tend to be somewhat predatory in social behavior (that’s why some cultures don’t allow the charging of certain types of interest) and I thought it was unusual for the government to be looking out so thoroughly for them. The term “too big to fail” was used as if someone had created a script for the robot media and our elected to flail about so that we should all be scared to death if the money went anywhere else. The media and our elected went along with the story like faithful zombies, infecting the rest of the country with their feverish fear mongering, coming at us from all directions with their crazed lies.

Let me add that the largest banks use supercomputers to figure out every possible economic outcome to every possible economic variable and probably can predict the future better than the local palm reader. So why did they need to be bailed out in the first place? Or was it all a big boondoggle?

So, with that said, getting back to my numbers, my stimulus package. At the time I figured that were the federal government to give that huge stimulus sum to individual taxpayers, it turns out it would amount to anywhere from $3,500 to $7,100 per taxpayer, depending upon which number you used for the total amount of taxpayers. It was my contention that were the money distributed in such a manner it would be a far more effective stimulus package than merely trying to prop up one clever industry after another, if you know what I mean.

If the individual taxpayer had that kind of money coming in they would to a large extent have done things like pay off credit card debt, make purchases (good for sales tax revenues), and take care of the other things which come along with modern American life. In effect, a real stimulus across the board would have happened, not simply banks and insurance companies giving $1,000,000 bonuses to their management, some as soon as six months later, you know, the kind of behavior they would have strung people up for during medieval times, perhaps even just a few decades ago. Nobody of any measure was prosecuted this time, though most would probably agree what happened was really quite criminal at least in a social context, primarily because of the condition the country is in today. In fact, one could probably argue that the stimulus package did exactly the opposite of what it was supposed to do, that it increased credit card defaults and home foreclosures while simultaneously providing a reason for banks to increase credit card rates and increase profits. In a way, not only did the stimulus strengthen the position of the financial sector, it weakened the position of the consumer in relation to the banks, it gave more power to the banks over the consumer. This to me seems like it could not have been by accident. Remember, the largest banks use supercomputers to predict the outcomes of just about every economic variable. In essence, they knew what the outcome would be of such a stimulus package long before it was contemplated.

Yet, imagine how such a stimulus as mine, where taxpayers would have received that money, would have stimulated retail sales! You could have even placed a tax break on purchases of products made in The US. Wow! That would stimulate things, now wouldn’t it? And many of the recipients would have probably just put the money in the bank and the “too big to fail” problem would have then been solved as well as the banks would then have maintained solvency, the origin of the fear mongering in the first place.

Instead, credit card companies began raising interest rates causing massive, record numbers of defaults, people started to foreclose on their homes, you name it. It was a poor, perhaps stupid decision on the part of our elected, there can be no question. Banks are going to fail. They do all the time even during good economic times. So why bail them out? Too big to fail? I think the $1,000,000 bonuses tells us all we’ve been had, that it was a crock, sponsored by our elected officials, putting us all into massive debt as a country and prolonged economic strife.

Essentially, our country’s elected decided to prolong the depression and give the money to a few small segments of our economy and let everyone else suffer through protracted economic blight. And they made a conscious decision to do that.

That leaves two choices, either they don’t care about the general public or they are on the take in one way or another. Because I for one offered a different plan, a plan that would have worked. At least it would have worked for me, and I’m willing to bet it would have worked for every one of you as well.

Too big to fail? If you ask me, if our elected need to be looking out for anyone, they should be looking out for the American public, because if you ask me, that’s the “too big to fail” you need to be looking out for.

Copyright © William Thien 2011

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