The Stimulus Package isn't Enough: What Should Have Been Done With the 2008 Government Bailouts

The recent stimulus package has been a topic of debate for many lately. Some feel like it's far too small, based on the gigantic bailout packages received by big business in recent months, and others feel like it's a slap in the face. The nerve of the government, giving us back such an insignificant portion of our own money! Why even bother?

Personally, I fall somewhere in the middle of the two camps. The government has been so committed to giving money to big business, when it's the small businesses that make our economy thrive. If the focus had been on putting the bailout money back into the wallets of small businesses and average, everyday Americans, I'm willing to bet we wouldn't be in this mess.

According to the Congressional Research Service (CRS), the total of the 2008 bailouts surpassed the inflation-adjusted amounts of each and every major war the U.S. ever took part in, from the American Revolution to the recent wars in Iraq and Afghanistan. The top ten major wars in our past totaled up to $7.2 trillion in current dollars. The cost of the 2008 bailouts? $8.5 trillion.

What would have happened if the government would have given the bailout money to American citizens? Well, first of all, every man, woman and child would have received roughly $27,300, which translates into $109,200 for every family of four. Even if you argued that just the parents or adults (over 18 years old) should get the money, $54,600 is more than enough to save the struggling middle class from losing their houses by the drones. Which means that people are able to pay their mortgage payments and avoid the mass foreclosures that are threatening so many banks. Problem solved!

With a nice nest egg, people would also be more willing and able to get out and shop, maybe by buying a new car, deciding to renovate their homes, or replenishing their wardrobes. Basically, stimulating the economy. Now, some may argue that a lot of that money would leave the country. But maybe instead of spending so much time hearing bailout proposals from big businesses, the government should have put more effort into educating the public about the true state of our economy and telling Americans how they could use the $28,000 individual bailouts to save America. Some of the cheapskates among us would still send their money overseas in an effort to save a buck or two, but given the right information and a little spending power, most Americans would be happy to do what they could to stimulate the economy and save their beloved country.

Those who are against this plan might argue that it would be supporting a Socialist economy and taking away incentives for people to better their own situations. Although $28,000 is a nice chunk of change that would drastically improve the lives of many Americans, it certainly isn't enough to retire on. People would still need to work hard, but at least they would have a little breathing room to help them make ends meet. In the face of so many layoffs, what the American people need most right now is a little financial help. Not from banks, who will offer unaffordable loans with high interest rates, but from their government, who can take some of the money from their own taxes and distribute it back to the taxpayers.

The bottom line is that our money was used for the bailout packages when it should have been given back to the hard-working American taxpayers as a whole. Instead, a large chunk of the bailout money (which, remember, came from taxpayers' money) was given to financial institutions so they could turn around and offer us credit at outrageous rates, leaving us to pay them back the money that we gave them at twice, maybe three times the original amount. Not a pretty picture, is it?

Furthermore, if every person who received this $27,300 would tithe a minimum of 10% to their valued charity, the money would go even further. Numbers 18:26 says '...then you should offer up a heave offering of it to the Lord, a tenth (10%) of the tithe.'

Many people are waiting to hit the lottery before they tithe. If you are waiting to make more money before you tithe, you will never get there, I believe with all of my heart that everything in this world is God's, and we owe our thanks, which includes helping our fellow man.

What about if we made every American take a percentage of, say, 10% (for the sake of argument) and put it into a US savings bond or something similar? Such a move would strengthen the United States as a whole and help teach many Americans how to use their money wisely. After all, one of the major arguments against giving money to the people is that they are irresponsible with their money and would just blow it on useless stuff. Instead of wasting our time on blame, shouldn't someone be teaching people the right way to handle their money?

Besides, don't tell me an extra $2,730.00 in everyone's savings account wouldn't help the banks and consumer confidence. Do you have that much in a liquid account?

This could also have been a missed opportunity to nationalize Social Security. But that is a topic for another day.