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Hey, ladies, how many think this would work?

I was watching Jon Stewart last night at 8 (because I'm totally in love with him, but that's for a different post :-) Anyway, he stated something that I have been thinking about for a few months with regard to this 800 billion stimulus package (not to mention the 750 billion that went to the banks) -
What if the government gave that money to the taxpayers and ensured that they would ONLY pay off their debt? He called it the "trickle up economic theory". This way, the banks get the money they need while our income is freed up to pump back in the economy in the form of purchases.
Do you think it would work? If you were handed a large chunk of cash to pay off your debts, would you? Or would you go buy yourself a new jet? :-)

Answer Question
 
plylerjones

Asked by plylerjones at 8:13 AM on Jan. 29, 2009 in Politics & Current Events

Level 11 (508 Credits)
Answers (28)
  • I'd pay off my debts. And if i had any left over, I'd have some fun with it. A jet? Not so much. But stock my freezer with food? You bet.

    christaberk

    Answer by christaberk at 8:16 AM on Jan. 29, 2009

  • It would be like $5000/per taxpayer I think.
    800 billion divided by 151 million taxpayers (based on 2008). BUt that wouldn't work because Obama also wants to give money to those who DO NOT pay taxes. So, it would be less.
    grlygrlz2

    Answer by grlygrlz2 at 8:17 AM on Jan. 29, 2009

  • Ohh and with aprox $5,000 I would save it... Live normal and HOPE that the Social Sec. I am paying into is still there when I retire but PLAN to save for my own retirement. :oP
    grlygrlz2

    Answer by grlygrlz2 at 8:23 AM on Jan. 29, 2009

  • oooow also in love with John S :) As I would love to say we would all act responsibly and pay our debts back ( I know I would) my instint tells me that there are more who would not. That is part of the reason most Americans are in the mess in first place, miss management of money. The large chunk would probably go toward the jet, or new car, or whatever. This is not a terriblely back thing though. It could be the spark needed to stimulate the retail markets, which increases production, increasing demand and thus forcing industry expansion. Now if we could just get that industry to be US based instead of Chinese then we may have something. just some thoughts.
    missv66

    Answer by missv66 at 8:23 AM on Jan. 29, 2009

  • sorry about all the misspells
    missv66

    Answer by missv66 at 8:24 AM on Jan. 29, 2009

  • I"ve kinda thought about this one myself. My theory was if the government instead of just handing over billions of dollars told the banks to divide the money to go into two phases first phase take all the customers behind 30 or more days on a loan and pay the back owed amounts then renegotiate the terms of the loan so the payments would be lower and they could make the payments you cure one problem. Then phase 2 take the current people and according to what they make re adjust the loans so that they would be lowered and the people would have an easier time making those payments. Then the bank would be getting the money and the people would have an easier time with the loan payments.

    babyfat5

    Answer by babyfat5 at 8:28 AM on Jan. 29, 2009

  • The MAJORITY of American taxpayers would likely squander it, and not use it to pay off debts--they'd use it for frivolous purchases...you know, consider it "found money."

    If some DO realize the value of the "gift" (which was YOUR money by the way), you would likely pay off any debts that you are behind on, and save the rest. Maybe you would try to get ahead a little.

    But $5000 (as grly pointed out) would be a best case scenario, we'd likely get less, and anyone who owns a home and/or has a couple of dependents knows, that even $5000 doesn't buy much, doesn't absolve MOST people of their credit card debts, it only holds you over for a month or two (rent/mortgage, groceries, gas, clothing, daycare/after school activities, etc)...it isn't like hitting the lottery!
    LoriKeet

    Answer by LoriKeet at 8:30 AM on Jan. 29, 2009

  • babyfat5
    ...first phase take all the customers behind 30 or more days on a loan and pay the back owed amounts then renegotiate the terms of the loan so the payments would be lower and they could make the payments you cure one problem. Then phase 2 take the current people and according to what they make re adjust the loans so that they would be lowered and the people would have an easier time making those payments. Then the bank would be getting the money and the people would have an easier time with the loan payments.

    ***
    But, the problem with your theories is what do people LEARN from their mistakes in agreeing to buy more house than they could afford, or accepting the terms of an ARM loan? Nothing! Claiming ignorance on the biggest and most important purchase of your life is not acceptable! What about those of us who saved, and purchased a home within our means and have FIXED rate mortgages? Do we get a BONUS check?!
    LoriKeet

    Answer by LoriKeet at 8:38 AM on Jan. 29, 2009

  • Exactly Lorikeet. $5000 would not buy much these days. And people paying down debt, doesn't stimulate the economy. (as we found out as a nation with the first stimulus check last year)
    grlygrlz2

    Answer by grlygrlz2 at 8:41 AM on Jan. 29, 2009

  • the gov't doesn't give a good s$^t about our debt or health or any of that crap.
    driftwood

    Answer by driftwood at 8:54 AM on Jan. 29, 2009

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