How to fix the economy

**BadeMillsap** · 03-27-2009, 07:47 AM

Where do I sign up???

Sounds like a better plan than anything we are seeing come from Washington ...

**Uncle Cracker** · 03-27-2009, 07:49 AM

As is typical with any gross oversimplification, this one is full of holes...

If everybody over 50 is suddenly gone fishing, what happens to their knowledge and experience, much of which is necessary to make corporate decisions, and train future generations? You can't stupefy the work force in one quick stroke. The results would be catastrophic.

If 40 million people buy new American cars, what happens to the repair and parts industry? And the majority of those new "American" cars are built with parts made in other countries. Who would we really be helping? And what happens to the used car industry when there are suddenly 40 million trade-ins to dispose of, and 40 million people who are prohibited from buying them?

And can anyone really judge the impact to an already crippled banking industry if they are suddenly hamstrung by not being able to get interest revenue? (And are instead paying interest on the deposits of all those big checks...)

And after all that, who's to say that whatever is left of my $mil will be enough to last my remaining 30 years?

This is a crap idea, designed to appeal to unrealistic people, and to gain readership and sell papers and advertising space. No matter how naive you might be, deep-down, you know the world doesn't work this way...

**Russianwolf** · 03-27-2009, 08:33 AM

40,000,000 people at $1,000,000 each........ sorry my calculator won't even go that high.

Cost

$40,000,000,000,000 Yep, that's $40 Trillion

(as a side note: Let's take the $700 Billion Bailout that happened last year and give it to these 40 million "retirees". That would be $17500 each. Not millions, not even Tens of thousands. Seventeen Thousand Five Hundred and 00/100 Dollars)

**Shep** · 03-27-2009, 09:02 AM

How is giving everyone over 50 $1 mill patriotic? When I turn 50 and don't get 1 mill, will the government be un-patriotic to me? Won't this set a precident to give everyone 1 mill upon reaching 50? How will this effect immigration? I'm sure we won't be able to keep everyone out at that point. What will this due towards saving for retirement if uncle sam will give it to you? If no one saves for retirement, what will happen when the money dries up? If the money dries up and uncle sam prints more money to cover this patriotic promise, how much will $1 mill be worth when rapid inflation takes it toll?

Just some thoughts, but last I checked all that Americans are entiled to is Life, Liberty and the Pursuit of happiness, not guranteed happiness with a $1 mill government nest egg.

**Alex Franke** · 03-27-2009, 09:22 AM

Originally posted by Uncle Cracker

This is a crap idea, designed to appeal to unrealistic people...

You think it was a serious plan? I thought it was a joke.

**Uncle Cracker** · 03-27-2009, 10:33 AM

Originally posted by Alex Franke

You think it was a serious plan? I thought it was a joke.

I think something in between. I think it was just serious enough to not be a joke. My point was that simplified thinking is being used to sell headlines. There is nothing about our present economy that is a joking matter, even to me...

**master53yoda** · 03-27-2009, 05:40 PM

As Cracker says it sounds good unless you think about what it would do. Kinda like Greenspan's solution in 2000 to 2006, sounded good to reduce the cost of money and lower the banking reserve requirements to increase purchases on credit, instead of resolving the problem in 2003 he just moved it out 5 years. We are at present experiencing the rest of the 2000 economy correction that was manipulated and made worse.

He didn't think through about what would happen the instant either the interest rate started backup due to inflation or the poor credit risk of the new people using credit started causing defaults, and the ineptitude of the banking industry in controlling its risk level.

The banking industry historically has not been good at watching risk level, IE the cause of the crash in 1929 and much of the depression was the result of very similar banking practices as what has happened in the resent past, the difference being that back then the government was unable to step in and limit the effect of bank failures as they can do know with our tax dollars.

The problem as we go forward is that the federal reserve has used all its ability to effect the economy through the banking system and hasn't been able to resolve its earlier economic manipulation the only future economic effect will have to be money injected into the economy by the federal government some of which is going to backfire and not accomplish what was intended. This money injection is easiest by assisting existing business.
During the depression the business industry was so bad due to the governments restrictions on business that the government had to start funding projects directly through the WPA etc. One of the least understood things about the 1930s depression is that it was greatly exacerbated by the governments interference in business practices and costs. The fact that not until after WWII was there more industrial employment then there was in 1929 is not widely none.

This has gotten to long so I'll stop. it is just my .02 worth and food for thought.

**Alex Franke** · 03-27-2009, 06:06 PM

Originally posted by Uncle Cracker

I think something in between. I think it was just serious enough to not be a joke. My point was that simplified thinking is being used to sell headlines. There is nothing about our present economy that is a joking matter, even to me...

Yes, I see your point. I agree.

**jonmulzer** · 03-28-2009, 09:43 AM

Originally posted by master53yoda

The banking industry historically has not been good at watching risk level, IE the cause of the crash in 1929 and much of the depression was the result of very similar banking practices as what has happened in the resent past, the difference being that back then the government was unable to step in and limit the effect of bank failures as they can do know with our tax dollars............

One of the least understood things about the 1930s depression is that it was greatly exacerbated by the governments interference in business practices and costs. The fact that not until after WWII was there more industrial employment then there was in 1929 is not widely none.

One of the least understood things about the 1930"s depression is that the federal reserve caused it. One of the least understood things about the federal reserve is that it is not Federal at all.

**master53yoda** · 03-28-2009, 01:56 PM

Originally posted by jonmulzer

One of the least understood things about the 1930"s depression is that the federal reserve caused it. One of the least understood things about the federal reserve is that it is not Federal at all.

Here is a site that has a fair bit about the depression and the government exacerbations which were many. It gives a bit different view of FDR's qualities as a president. It takes a generation before we even get a little bit about what was realy going on during any presidency.

My dad was born in 1911 and his views of FDR were substantially different from what was being taught in school as I remember.

The site: http://www.cato.org/pubs/tbb/tbb-0508-25

Just food for thought and perspective.

**jonmulzer** · 03-28-2009, 02:07 PM

Article not found. Try linking it again.

**Wood_workur** · 03-28-2009, 05:02 PM

Originally posted by Uncle Cracker

If 40 million people buy new American cars, what happens to the repair and parts industry? And the majority of those new "American" cars are built with parts made in other countries. Who would we really be helping? And what happens to the used car industry when there are suddenly 40 million trade-ins to dispose of, and 40 million people who are prohibited from buying them?

By American cars he means Toyotas. The auto maker that does the most stuff in this country.

**master53yoda** · 03-29-2009, 08:09 PM

Originally posted by jonmulzer

Article not found. Try linking it again.

http://www.cato.org/pubs/tbb/tbb-0508-25.pdf

it gets messed up when you try to set it up as a link.

How to fix the economy

How to fix the economy

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