Tuesday, September 23, 2008
What could $700 billion do?
Attempting to ratchet up the scare factor:
Federal Reserve Chairman Ben Bernanke bluntly warned reluctant lawmakers Tuesday they risk a recession with higher unemployment and increased home foreclosures if they fail to pass the Bush administration's $700 billion plan to bail out the financial industry."Risk" a recession? Open your eyes, Ben.
As far as that "higher unemployment," let's do some math, elaborating on a point made in a post below. $700 billion, divvied up into modest but decent salaries of $50,000 (enough to help someone make a mortgage payment!), pays for 14 million jobs. In reality, it does far more. Because if you give $50,000 to a working person (or a formerly unemployed person, more to the point), they're likely to spend every penny, on groceries, rent, gas, whatever. Meaning that every cent goes back into the economy with a "multiplier effect," producing even more jobs.
A "flow-up" plan rather than a "trickle-down" plan. Needless to say, it won't be considered.
