Would it have been better for the government?

Question

to give everyone 18 yrs old and older who makes under 250,000 dollars a year, 250,000 dollars. Wouldn't that have stimulated the economy better? I mean people could have paid off their mortgages and bought new cars, that would have bailed out the banks and auto industries and the government would have collected taxes off from all the purchases people made with the money they spent also.

Anonymous · Accepted Answer

Yes, but they're not going to give us poor, irresponsible people that kind of money; we don't know how to use it.  Remember, we helped make this economic mess, don't ya know?  

It makes sense to also cut the payroll tax in half for a year or more.  That would help too

oohhbother · Answer

The banks had those mortgages on their books as the full interest-bearing value of the mortgage, not as the sale value of the house.

Then, they leveraged the value of those mortgages to invest in securities that were as much as 40 times the value of the mortgages.

The investment bank house of cards is only based on homes.  It ballooned up from there to consume pension funds, 401K and other investments.  

Those have a much greater value than the nations homes, and those are what would be lost -impoverishing the elderly.

Anonymous · Answer

With the money they spent they could have paid off every Mortgage under $550,000. This would have cleared the books and given EVERYONE a fresh start. If your mortgage was larger than that you can either afford it or don't deserve it.
NO YOU CAN'T!

Anonymous · Answer

Yes.  The problem is that it would totally take government out ot he power loop and empower the people.  Basic flaw of a run away government.

chameleon bark · Answer

...better for the government for Obama to resign?

Anonymous · Answer

the "Obamanator" SUCKS!!!

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Would it have been better for the government?

6 Answers