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View Full Version : Economics Outside the box stimulus idea. Don't say I didn't warn you.


Direckshun
09-28-2012, 12:28 PM
http://www-personal.umich.edu/~mkimball/fiscal-bang-for-buck-29may12.pdf

To quote the study's author:

"Provide $2,000-lines of credit to every taxpayer, accessed through a government-issued credit card.

"The interest rate would be 6% per year, the money could be paid back over the course of 10 years, and the credit limit would gradually fall as the economy recovered and the stimulus from this extra borrowing power was no longer needed… most of the funds people borrow using these government-issued credit cards would eventually be repaid—particularly since the government can enforce repayment through payroll deduction. The unemployed would have their payments deferred, but once the economy is moving again, most people would have jobs with paychecks so they could repay… the stimulus effects of Federal Lines of Credit would be at worst only a little smaller than the stimulus from a $2,000 per person tax rebate.

"If 90% or more of everyone eventually repays, a $2,000 per person line of credit would ultimately cost less than $200 per person. With a good deal like that for getting the economy back in gear, maybe even Republicans and Democrats can agree on it."

Donger
09-28-2012, 12:36 PM
I'd rather just vote Obama out of office and get a pro-business POTUS in the WH. But thanks for the suggestion.

blaise
09-28-2012, 12:41 PM
Holy shit.

HonestChieffan
09-28-2012, 12:43 PM
Breakthrough stuff. I admire people who can think through problems and come forward with real creativity.

mlyonsd
09-28-2012, 12:50 PM
How many people can the government hire to oversee this debacle?

blaise
09-28-2012, 12:52 PM
How many people can the government hire to oversee this debacle?

A few thousand to distribute the money and then a few thousand to write off the money they can't collect on the loan.

Iowanian
09-28-2012, 12:52 PM
I'm down with EBT
....yeah you know Me

You down with EBT
.....yeah you know me



I know how to fix the national debt and job crisis....yeah! Free Money!

vailpass
09-28-2012, 12:54 PM
A government issued credit card? Direckshun are you really in favor of government dependency and invasion or is your whole schtick an elaborate troll movement?

Iowanian
09-28-2012, 12:54 PM
Why don't we just skip directly to where you and Obama would like us...

Everyone turn all of their money and report to their govt assigned work camp where we'll all be issued the same box of dry noodles and money for the month....It's like the left wants all Americans to work for a coal camp and owe their life to the company store.

blaise
09-28-2012, 12:55 PM
"Why should I have money deducted from my paycheck to pay it back when there's billionaires in private jets?"

vailpass
09-28-2012, 12:56 PM
"If 90% or more of everyone eventually repays, a $2,000 per person line of credit would ultimately cost less than $200 per person."

Considering who the people are that would actually need/use a government credit card, what do you realistically think would be the percentage of those who repaid?
Considerably less than 90% would be my guess.

Amnorix
09-28-2012, 01:33 PM
Makes no sense at all, really.

EDIT: Ok, this is proposed as an alternative to a simple tax rebate. I suppose if the issue is "we need to stimulate consumption -- should it be a tax rebate or a credit card like this one", then I can see room for debate/discussion. IMHO those who assets took the rebate and banked it, so it's no different than what happens if you give out credit cards like this (those with assets wouldn't use it).

Amnorix
09-28-2012, 01:44 PM
"If 90% or more of everyone eventually repays, a $2,000 per person line of credit would ultimately cost less than $200 per person."

Considering who the people are that would actually need/use a government credit card, what do you realistically think would be the percentage of those who repaid?
Considerably less than 90% would be my guess.


Yeah, but if you do one of those one-time rebates, the money is gone anyway, so if you're posing an either/or, that part doesn't matter much.

Garcia Bronco
09-28-2012, 01:45 PM
Why...so we can funnel money through the banks to get these cards? No thanks.

Rain Man
09-28-2012, 01:46 PM
I miss the old days when the government programs built dams and electric lines.

CoMoChief
09-28-2012, 02:00 PM
http://www-personal.umich.edu/~mkimball/fiscal-bang-for-buck-29may12.pdf

To quote the study's author:

"Provide $2,000-lines of credit to every taxpayer, accessed through a government-issued credit card.

"The interest rate would be 6% per year, the money could be paid back over the course of 10 years, and the credit limit would gradually fall as the economy recovered and the stimulus from this extra borrowing power was no longer needed… most of the funds people borrow using these government-issued credit cards would eventually be repaid—particularly since the government can enforce repayment through payroll deduction. The unemployed would have their payments deferred, but once the economy is moving again, most people would have jobs with paychecks so they could repay… the stimulus effects of Federal Lines of Credit would be at worst only a little smaller than the stimulus from a $2,000 per person tax rebate.

"If 90% or more of everyone eventually repays, a $2,000 per person line of credit would ultimately cost less than $200 per person. With a good deal like that for getting the economy back in gear, maybe even Republicans and Democrats can agree on it."

FUCK YOU COCKBAG!!!!![/SIZE]

patteeu
09-28-2012, 03:06 PM
Why don't we just make it $100,000 and get the economy really cooking!

patteeu
09-28-2012, 03:07 PM
I wonder what percentage of the $2000 would go to buy products made in China.

vailpass
09-28-2012, 03:15 PM
Yeah, but if you do one of those one-time rebates, the money is gone anyway, so if you're posing an either/or, that part doesn't matter much.

It seems it would matter in the context of the article being misleading when saying that if 90% paid back the credit loan the cost would be approx. $200/person.
Not only is the 90% figure HIGHLY unlikely, the author neglects to include the administrative costs of the program which would result in a much higher cost per person.
Given the federal government's track record in dabbling in private sector practices the final administrative costs per person may exceed the $2000 benefit. A fitting, if tragic, exclamation point to another ill advised big government initiative by the obama camp.
We MUST stop trying to fix our problems by throwing money at them.

mnchiefsguy
09-28-2012, 03:16 PM
Worst. Idea. Ever.

vailpass
09-28-2012, 03:17 PM
Why don't we just make it $100,000 and get the economy really cooking!

:D We have the printing presses needed to accomplish this, don't we?

J Diddy
09-28-2012, 03:26 PM
I mean wait a minute. Before I throw my opinion out there, there's something I need to know. If we get that $2000, will I still get my free Obama phone?

blaise
09-28-2012, 03:41 PM
I wonder what percentage of the $2000 would go to buy products made in China.

Almost all of it. The $2,000 would stimulate retail business at Christmas, so retailers could temporarily hire a few more people to sell TVs, clothes and phones manufactured somewhere else.

vailpass
09-28-2012, 03:47 PM
I mean wait a minute. Before I throw my opinion out there, there's something I need to know. If we get that $2000, will I still get my free Obama phone?

:D

Brock
09-28-2012, 03:51 PM
This one's fresh off a bonghit.

Stewie
09-28-2012, 04:06 PM
I miss the old days when the government programs built dams and electric lines.

Absolutely.

It started back in the early 20th century when Henry Ford asked why we need federal government bonds to build a dam with the big banks involved. The government didn't need the banks back then, but now they're the slave of the banks.

Ford's point was this: "Why do we need to float federal gov't bonds via the banks when the banks skim 50% of the money that has nothing to do with building a dam."

Fast-forward to today and this administration can't do enough to take it up the ass from their bankster buddies. QE3, QE4.... and on and on and on.

alpha_omega
09-28-2012, 06:00 PM
Discover................more ways to fuck the taxpayer.

Aries Walker
09-28-2012, 06:08 PM
Millions would max out within days, and thousands would default, leaving the government in even more debt. Many people would view it as free money, and would also end up in even more debt.

Dogs and cats living together, mass hysteria.

Dayze
09-28-2012, 09:26 PM
See....Obama was right. He's gonna pay for our gas!!!

Direckshun
09-30-2012, 02:29 AM
LMAO

Rain Man
09-30-2012, 07:26 PM
Why don't we just make it $100,000 and get the economy really cooking!

That's a great idea. Heck, if they would give us a million dollars in incentives we could all be millionaires. Imagine that; every American driving luxury cars, taking big vacations, living in mansions. A nation where every single person is a millionaire? That hasn't happened since 1920s Germany, or maybe Zimbabwe in recent years.

mlyonsd
10-01-2012, 06:24 AM
Why don't we just make it $100,000 and get the economy really cooking!

Give me $50k and I promise I'll buy a Corvette from GM. They could use the help.

Amnorix
10-01-2012, 06:44 AM
It seems it would matter in the context of the article being misleading when saying that if 90% paid back the credit loan the cost would be approx. $200/person.
Not only is the 90% figure HIGHLY unlikely, the author neglects to include the administrative costs of the program which would result in a much higher cost per person.
Given the federal government's track record in dabbling in private sector practices the final administrative costs per person may exceed the $2000 benefit. A fitting, if tragic, exclamation point to another ill advised big government initiative by the obama camp.
We MUST stop trying to fix our problems by throwing money at them.


Yeah, no argument.

patteeu
10-01-2012, 09:21 AM
That's a great idea. Heck, if they would give us a million dollars in incentives we could all be millionaires. Imagine that; every American driving luxury cars, taking big vacations, living in mansions. A nation where every single person is a millionaire? That hasn't happened since 1920s Germany, or maybe Zimbabwe in recent years.

I think too small. This is a much better idea. I'm going to buy a Montana ranch near Bruce Willis with mine. :thumb: