Solving the Economic Crisis:
I must have seen about a dozen ideas put forward on how to handle the current economic ‘difficulties’. (I personally think it is going to eventually be a total collapse, but that’s another story.)
Some of these ideas call for tearing down the present system and installing a socialist system. These don’t bear serious consideration in light of the near collapse of socialism worldwide.
The government has, as is to be expected, some ideas of its own. Every one of these ideas both from citizens and from government has one thing in common….
Putting large sums of taxpayers’ money into some portion or another of the economy.
Some call for more ‘bailout’ for failing financial institutions. Some call for ‘bailout’ of companies that provide large numbers of jobs. Some call for government to spend huge sums of money on refurbishing the physical infrastructure of the nation. This, it is said will provide employment for many who are already, or are about to become, unemployed.
Now all of these great, and not so great, ideas show a clear understanding that, whatever will or can be done, it will entail a huge expenditure of taxpayers money. I read a news item the other day, I forget where it was, where someone estimated that the amount of money needed would be on the order of many thousands of dollars per capita – MANY thousands. (I think the sum mentioned was over $10,000 for each and every adult person.)
It is thought, that by investing in such “bailout of the wealthy” schemes, employment will be created and money will be “earned and spent” thus keeping businesses in business and our economy alive. Perhaps this is true, perhaps not. I’ve never seen trickle-down economics work yet.
In all of these ideas about saving the economy runs one common thread. A whole bunch of money must be spent and the arguments as to which businesses should get that money are endless and as varied and ingenuous as you could want.
Proponents for each sector of business and government are each certain that he is right and that the proponents for any other sector are completely wrong. Each claims that his own special interest will ultimately get the most money “into the hands of the population so that spending can revive the economy”.
I think they are all wrong. They are all thinking “trickle down” economics of a sort. What...”Give money to businesses so they can hire people who will earn a pay-check who will spend (maybe) that pay-check which will make businesses prosper and hire more people, etc., etc.?”
Whoa.......Hold on there podna’!
If you need to get people spending so as to revive the economy – why not just give THEM the doggone money? Directly? They are going to be on the hook for paying it back so why shouldn’t they be the ones to get it?. . . ALL of it.
Why filter it down through government agencies or businesses that have proven unsuccessful at managing themselves, or indeed, through ANY intermediary? Such filtering will mean that only a small portion of that money will get to those who must spend it to make the economy come back to life, the citizens.
So here’s a thought….. Let us, instead of bailing out undeserving financial and corporate interests, “bail out” the citizens! Suppose that each adult citizen were “bailed out” to the tune of $10,000.
If it is given to each and every adult citizen, he/she would be able to spend a bunch on things they need or want. This will create a huge demand for goods and services of all kinds. With the huge demand for goods and services this would create, businesses will prosper - employment will skyrocket - more spending will occur - more businesses will pull out of the slump - more people get hired. Round and round we go. The downward spiral becomes an upward spiral once again.
And in a fraction of the time it would take by any other method, IF any of those other methods would even do the job at all.
Sometimes the simple solution is the best one.