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View Full Version : One million dollars to everyone over 50!


Michael
Apr 22nd 2009, 09:59 AM
Has anybody seen this latest viral email going around?

It suggests that to solve the recession/financial crisis in the USA, all you have to do is give $1 million to everyone over the age of 50 and impose the condition that they quit their jobs, buy a new house and buy a new car.

Supposedly, this solves unemployment, the housing crisis and the auto industry all in one go.

I got this email forwarded to me (I can't imagine why anyone would send stuff like this to me since I always check it out and that usually makes the sender look like an idiot for sending it to me).

And today on the way to work, the morning DJ on my regular radio station was talking about this email saying this sounded like a "really great idea" - neither he nor is fellow 'morning show hosts' could grasp the concept of why it would be impossible - they just babbled on like idiots about how 'cool' that would be and how come the 'government' can't figure out this kind of simple solution.

Anyways, this little 'solution' demonstrates mind-bogglingly ignorance of both mathematics and current affairs.

$1 million to each of 40 million people equals $40 trillion which is roughly three times larger than the entire GDP of the United States. It would require the US Government to incur a 4000% increase in the deficit (which would represent a rate of 300% of GDP), a 500% increase in the size of the gross national debt and would suck up approximately 75% of the combined GDP of the entire planet to finance it. :eek:

One might as well give $100,000 to every man/woman/child in America instead which would cost you $10 trillion less - but still more than double the whole GDP of the USA in 2008 and only require half the combined GDP of the entire planet to finance it. :rolleyes:

I can well imagine that some idiot might come up with this silliness. What amazes me is that apparently lots of people are incapable of seeing how absurd and nonsensical it is. :shrug:

Americano
Apr 22nd 2009, 10:32 AM
Many in our society live their entire lives in some fantasy world.

partofme
Apr 22nd 2009, 10:50 AM
The e-mails sent out during the election where quite entertaining. I absolute loved it when people came to me with them because I got to put on my Dr. House sarcasm and show my contempt.

Donkey
Apr 22nd 2009, 01:17 PM
But how cool would it be.

;)

wphelan
Apr 22nd 2009, 02:09 PM
But how cool would it be.

;)

Would suck to be 49 and 364 days. Not only do you miss out on the million, but you're stuck working like everybody else. :lol:

Michael
Apr 22nd 2009, 05:06 PM
But how cool would it be.

;)
:ummm:
How cool would it be to suck every penny from India, China and Africa in order to give bonus checks to a bunch of rich Americans for screwing up the world's economy?

That just looks like the same issue as the banker's bonuses writ large.

Sidenote: One of the only US spelling words that gets me every time is "checks" - I always type "cheques" and have to re-type the word everytime!!!

Donkey
Apr 22nd 2009, 06:03 PM
:ummm:
How cool would it be to suck every penny from India, China and Africa in order to give bonus checks to a bunch of rich Americans for screwing up the world's economy?

That just looks like the same issue as the banker's bonuses writ large.

Sidenote: One of the only US spelling words that gets me every time is "checks" - I always type "cheques" and have to re-type the word everytime!!!
I think that when people hear stupid stuff like this, they don't generally get beyond the "what would I do with a million dollars?" point.

Dominick
Apr 22nd 2009, 06:06 PM
Does that million come in mortgage bonds ? :angel:

Michael
Apr 22nd 2009, 06:46 PM
I think that when people hear stupid stuff like this, they don't generally get beyond the "what would I do with a million dollars?" point.
Yes, that would appear to be the case here.

I of course immediately looked at the public policy impact of issuing the cheques checks. As always, if something sounds "too good to be true", it probably is. ;)

And just to put this sum of money into perspective, to actually 'finance' that giveaway would require the sums I mentioned above (75% of the world's annual GDP sucked up in US Treasuries bonds).

The alternative is to just crank up the printing presses at the Fed and go to town. And according to my quick calculations, that would being doing TRIPLE the damage done when the German Republic did it in the 1920's (and they got hyper-inflation measured in the thousands of percent per day range within a year). To do the million dollar giveaway to 40 million people would require the Fed to print (proportionally speaking) triple the money the Germans printed. Assuming exponential effects, that would likely produce ten times the amount of inflation that Germany had... :eek:

I guess that might mean needing TEN wheel-barrows full of cash to buy a loaf of bread instead of just one... :ummm:

Michael
Apr 22nd 2009, 06:48 PM
Does that million come in mortgage bonds ? :angel:
Yes, the mortgage bonds will be issued by Countrywide Financial and underwritten by Bear Sterns. Insurance against any default on the mortgage-backed bond will be covered by A.I.G. :D

Americano
Apr 22nd 2009, 06:49 PM
Does that million come in mortgage bonds ? :angel:

And will Goldman-Sachs (derivative contracts risk to asset ratio = 1056%) be issuing them?