Someone has suggested that the Federal government should distribute the $700 billion dollars that the Congress authorized for spending to re-stimulate the U.S. economy and "unfreeze" the credit markets, to the average citizen by issuing each citizen a check for $2,000,000 to spend!!!
Now that's what I call giving the U.S. consumer a "shot" in the arm.
At first exhilarating blush, here's how I would "infuse" my rebate back into the U.S. economy to help our current economic challenge:
- buy a home, maybe $350,000 to 400,000. Pay cash or negotiate a mortgage...which would help the economy more???
- buy a car for $12 to 13,000 (maybe). I have not owned a car for three years and have used public transit and our wonderful free bus system in suburban Illinois. The problem with purchasing a car, I would again be contributing to the emission problem that plagues our planet. But I sure do miss the freedom of stepping out the door to a "set of wheels." Maybe part of my rebate could be used to join with some other entrepreneurs to promote the idea of car-sharing by starting a car share business. Then I would not have to purchase a car and would have more of my rebate left to do other things whether saving, investing, donating or just plain consuming.
- If I purchase that house, I would fund a home repair account and a car repair account ($50,000).
- Invest $500,000 in stock, treasuries , etc. As "they" say, we need to restore faith in the system, my only caveat is that the system must have regulation. I surely don't want the free-wheeling of the mortgage system to happen again.
- fund an emergency fund for eight months of expenses as every good citizen should...$50,000. My lifestyle has been pretty simple since income has been tight. I would like to indulge a little but spending $200 for a pair of shoes is not in the cards.
- furnish my new house...$15,000 to $25,000. Have a nice house but not an ostentatious one. No swimming pool or hot tub. No cheap furniture though. Nice stuff like from a "better" furniture store.
- fund a home/car insurance account...$25,000. It helps to know that these big chunk bills are covered ahead of time.
- Donate to charities. Very important especially now...$200,000. The food pantries are soooo empty right now. However, the citizens that these pantries help would also get $2,000,000 to spend! They would not need the food pantry's help. Well, then the money could be used for different charitable programs. Hmmmm, help fund the grossly needed health insurance needed for 47 million U.S. citizens?
- This I call my "mad money" fund...$200,000. No "ear marks" for this money. Call it a rainy day fund, tap it to help a good cause or living expense.
- Help relatives or friends in a special way if needed...$50,000. Again, my relatives and friends would also have that $2,000,000 check in-hand. Would they need my help?
Did I spend my $2,000,000 as a dutiful citizen. Did I choose some responsible action plans for some of my rebate. You notice that I did not mention spending money on daily living expenses such as food or clothing. I am on social security and would use that to help fund my daily living. It's all the contingencies that I cannot now plan for. My social security and now woefully reduced IRA/403B accounts will give me a small support for my senior living. Actually I'm one of those 47,000,000 without health insurance. Even with some "mad money" to pay for insurance premiums, our current health care system would not insure me.
That's a problem.
What would you do with $2,000,000.???????
