Put bailout money in the hands of registered voters

It is painfully obvious that the $700 billion “bailout” is not working. The politicians and financial “wizards” who got us into this situation are salivating over the expected monies coming their way, yet have failed to grasp the import of this process. Credit has not been loosened, people are still facing foreclosures, bankruptcy and other financial ills, all brought about by the “wizards” who now expect to be saved, while the consumer pays the price.

Instead of giving money to the institutions who continue to fund bonuses, seminars and other activities not targeted to alleviate the economic situation, I propose instead that the solution be approached from the bottom up. That is to say, give the bailout money to the consumer.

Here is what I propose.

The federal government pays to each registered voter in 2008, a tax-free check in the amount of $200,000. This would stimulate the economy far beyond what a bailout to banks and automakers would do.

The people receiving these funds would be able to pay down their mortgages, pay off credit card debt, fund college tuition for their sons and daughters struggling with student loans.

People receiving these funds with no immediate need would also help out the economy by depositing these checks into their banks, thus making funds available for lending, or by spending some of the money on consumer goods, maybe even new cars, thus stimulating the economy in that way and possibly helping out the auto industry as an aside.

Why registered voters?

They represent a group of adults over 18 who need and would spend these funds to the benefit of the economy. Would some squander this largess? Undoubtedly, yet by so doing they would still be pumping funds into a stagnant economy, which is the overall goal of this proposal. Since Social Security numbers are needed almost from birth, using that database would include many minors unable to do anything with these funds. Registered voters seem to be the most useful group to utilize.

Why a tax-free check?

It would do no good to have the government give with one hand while having their other hand in the consumer’s pocket. And after all, the money used to assist the consumer came from their pockets in the first

place. Additionally, the total sum to be dispensed would be far less than the proposed $700 billion now on the table.

By following this initiative, we could put the citizens of this country on a basis of solvency unheard of for decades. Much of the paper held by banks and other lending institutions would no longer be “bad” since mortgages would be paid down. People could pay down credit card balances and not be subjected to exorbitant interest rates. Students who might not be able to afford college tuition would now get a chance to attend schools, to the overall betterment of our society.

This would only work if there was no government “tweaking” of the process. No tests for income level, need, demographics or any such restrictions common to other government programs. Anyone and everyone who was a registered voter in 2008 would get a tax-free check for $200,000. Keep the politicians and lobbyists out of the process and let the consumer drive the market.

I think this approach “outside the box” is the solution to the present crisis we find ourselves in due to the short-sighted policies of financial people who should have known better.
Kevin R. Walsh
Freehold Township