The Michael John McCrae Economic Stimulus Plan (Revised)
By: Michael John McCrae
In all seriousness I believe we can revive the American economy, not with hundreds of billions of dollars given to democrats or corporations. In my plan everyone is bailed out and the economy is almost completely salvaged by giving the loans to the American people.
The last census estimated the United Stateâ€™s population at approximately 330 million people. My suggestion is to give each of these 330 million people a fixed rate loan of one million dollars, repayable at 2 percent annually without interest.
Now, before you call me insane; understand we will have a major list of Americans who will not receive any money under this plan. The money will only be given to Americans who need and who will immediately spend the money given to them.
The following people will be exempt from the stimulus plan: All Hollywood elite (actors, directors, producers); all government employees both state and federal already making $120,000 or more a year; all corporate employees nationwide making $120,000 or more a year; all union employees and associates making more than $120,000 a year, all lawyers making $120,000 and all health services people with annual salaries in excess of $250,000. In short $120,000 is the baseline. Any individual American citizen making a lower annual salary will qualify for the one million dollar loan.
Now, there are 9 major stipulations involving the receipt of this money, including:
1. Homeowners must pay off their existing mortgage. This will effectually bail out the sincerely damaged mortgage industry. This will also free up incredible amounts of cash for families paying monthly mortgages. Some of that will become part of the 2 percent annual repayment.
2. Recipients will immediately pay off all credit card debt. This will effectually bail out most banks and relieve the credit crisis. This will also free up cash toward the family loan repayment.
3. Recipients will immediately purchase one new American automobile. This will effectually bail out the Big Three, the industries that supply the parts for auto assembly and nationwide car dealerships. The influx of all these new sales will also create jobs due to the massive increase in demand for new cars.
4. Recipients will use $100,000 to establish a personal health savings account. This will effectually bail out the strapped health care system and enable 100 percent coverage for the 47 million currently uninsured.
5. Recipients must put a minimum of $100,000 in a savings account or a government savings bond. This will be a boost to banks, giving them the liquidity and an incentive to make loans to businesses. The interest born through these accounts will go back to the government in the form of loan repayment.
6. If you are a renter with a family? You will agree to buy an existing home or have a new home built with all new American made appliances installed. This will increase job creation in construction, renovation and the manufacture of appliances nationwide. This will also increase open rental property inventories for young, unmarried singles and senior citizens without families.
7. Each recipient child under the age of 18 will have $500,000 placed in an interest bearing trust fund until reaching legal age. All interest gained by this account will be used for loan repayment. The remaining $500,000 will be placed in a college fund to be used for either college or private school tuition between years 6 and 18. This will permit school choice to be extended to all citizens equally and will relieve much of the overcrowding experienced in public schools. It will eliminate the need for school lunch programs and the Federal Department of Education can be eliminated as families determine the best educational path for their children.
8. Each recipient will be permitted $100,000 for travel, entertainment and tourism. This will stimulate the worldâ€™s tourism industry, create a massive infusion of cash to the airline and cruise industries and expand the numbers of job openings in the services industry worldwide.
9. Remaining money up to $100,000 will be used to create a 401K or IRA plan for every recipient. This will bail out Social Security and ensure the financial security of recipients upon retirement.
We must address the people in America illegally. The families will receive $250,000 to purchase airline tickets for their return to their homelands. They will also receive legal assistance in their documentation to become legal immigrants should they desire to return to America. Individual illegal people without families will be given an airline ticket after submitting to fingerprinting and background checks. Individual illegal people may also apply for a $250 stipend to purchase food until they can find work in their own country.
We must also address tax cuts. The corporate tax rate will drop from 35 percent to 25 percent to create incentives for expansion and job creation. This will be in conjunction with a 2-year moratorium on Capital Gains taxes and a decrease in the personal federal tax rate to a flat 12% across all earning groups.
The departments of Education and the IRS will be eliminated. Government employees working in those departments may be transferred to other government agencies or accept the one million dollar stimulus loan to get their houses in order and retire or find new work outside the government.
This plan also eliminates the need for every entitlement program sponsored by state and federal government concerning children, welfare, workfare, Medicare, medicade, farm subsidies and any other government giveaway program as the people of America use their one million dollar loan to improve their living quality, using their own ingenuity and responsibility.
This entire plan involves the federal government living within its means and doing only what it was originally designed to do; protect the nation. The federal government will know exactly how much it will be getting in return annually and must stay within that budget. There will be nothing left to promise anyone and no new entitlement programs. The governmentâ€™s sole role in the plan is oversight to ensure the recipients of the loan use the monies for their intended purposes and repay the loans on time. The economy will take care of itself as jobs are created and corporations deal with supply and demand.
Finally, we complete the border fence. This will employ hundreds of thousands of people for approximately the number of years it will take for this stimulus to have its full effect. After the fence is complete and the United Stateâ€™s Customs Service is reformed, we will again have control of the illegal immigrant problem and keep homeland security manageable.