wouldn't that stimulate economy? This question was posed a month ago. Yet it is a resolved question so I couldn't post a reply. So I'll start a new one.
While this is a valid question that MANY have been asking. I personally think it is possible to do so. However,not with just a hand out of $1million dollars. We are seeing the down side to giving Hand outs and the abuse it causes by what's happening on Wall Street.
The way this could work would be by giving credits not a lump cash sum. Rather, a credit system. And it would be for US Citizens over the age of 18 not living overseas unless they are in the armed forces or working for a government agency and they must not be in Jail or have a Prior Felony history. At the start of the credit system, there would be a 2 year moratorium on price increases for anything purchased in the USA. This will create a two fold which I'll get into later. The first draw the Citizen shall take wil be for housing. If they have an existing Mortgage, the moratorium shall state they must pay off their mortgage and stay in the home for at least 2 yrs or if they HAVE to move, they can only purchase a home of equal value. If the Citizen just lost their home to foreclosure, then they can take their credit and purchase a home at the same value as their home they lost to foreclosure. (if the home hasn't been sold by the bank, they must buy back their home from the bank) If they do not own a home and are renting, they can purchase a home equal to the value that their income level would have allowed + $100,000.00. Or what a Mortgae payment would have been equal to their rent amount + $500.00. (which ever is the greater of the two) This will stop everyone from going out and buying homes way over what they normally would have been able to afford without the hand out. And the 2 yr moratorium on moving stands for everyone to insure that price gougeing will not take place. The second thing the US Citizen can do is draw a credit to pay off bad debt. Bad debt would be any medical bills, judgements, liens,repossessions, credit card debt. Then the 3rd draw would be to pay off their car. If their car is already paid off, or over 10 yrs old, they can purchase a new car of equal or comparative value at todays standards. In otherwords, If you own a Honda Accord, you can't go out and buy a Brand New Cadillac Escalade. I think you can see where I'm going with this. The credit you take out isn't to overextend, rather get you out of debt and stay in the lifestyle you are in and can afford without being strapped by mortgage, rent, car payments and bad debt. After all these credits are obtained, your employment can be evaluated. If you have lost your job, you can take a credit to go to school to reeducate yourself. If you are currently employed, the 2 yr moratorium stands. You stay employed so as not to disrupt the balance of everyone all of a sudden wanting to be Stock Brokers or MD's and no one wants to work at a retail store as a cashier. And hopefully after these 2 yrs, the economy will be back to an even keel that more jobs will be available so those out of work, or in school can obtain a decent job with decent pay.
The 4th draw will be to create a retirement account. One that cannot be touched until the age of 65.
The 5th draw will be to create a college fund for your child/children that cannot be used for anything but college.
The 6th draw will be to purchase health insurance. The credit will be extended for 2 yrs - giving you enough time to incorporate the payment into your budget, or hopefully have employer coverage by the 2 yr date. If you already have health insurance, you are exempt from this credit.
Once everyone has a home, a car, bad debt paid off, health insurance, retirement funds, and college funds. Their credit is cut off. It's up to them to figure out how to keep from getting into overextended situations in the future. They can either take out home equity lines and run up their credit card debt, or be responsible and happy living within their means. This has been a tough 2-4 yrs for many. And I think if given this kind of opportunity - many will be content with their lifestyle and set goals and levels of success in steps, rather than with irresponsibile behaviour.
Will this take monitoring%
While this is a valid question that MANY have been asking. I personally think it is possible to do so. However,not with just a hand out of $1million dollars. We are seeing the down side to giving Hand outs and the abuse it causes by what's happening on Wall Street.
The way this could work would be by giving credits not a lump cash sum. Rather, a credit system. And it would be for US Citizens over the age of 18 not living overseas unless they are in the armed forces or working for a government agency and they must not be in Jail or have a Prior Felony history. At the start of the credit system, there would be a 2 year moratorium on price increases for anything purchased in the USA. This will create a two fold which I'll get into later. The first draw the Citizen shall take wil be for housing. If they have an existing Mortgage, the moratorium shall state they must pay off their mortgage and stay in the home for at least 2 yrs or if they HAVE to move, they can only purchase a home of equal value. If the Citizen just lost their home to foreclosure, then they can take their credit and purchase a home at the same value as their home they lost to foreclosure. (if the home hasn't been sold by the bank, they must buy back their home from the bank) If they do not own a home and are renting, they can purchase a home equal to the value that their income level would have allowed + $100,000.00. Or what a Mortgae payment would have been equal to their rent amount + $500.00. (which ever is the greater of the two) This will stop everyone from going out and buying homes way over what they normally would have been able to afford without the hand out. And the 2 yr moratorium on moving stands for everyone to insure that price gougeing will not take place. The second thing the US Citizen can do is draw a credit to pay off bad debt. Bad debt would be any medical bills, judgements, liens,repossessions, credit card debt. Then the 3rd draw would be to pay off their car. If their car is already paid off, or over 10 yrs old, they can purchase a new car of equal or comparative value at todays standards. In otherwords, If you own a Honda Accord, you can't go out and buy a Brand New Cadillac Escalade. I think you can see where I'm going with this. The credit you take out isn't to overextend, rather get you out of debt and stay in the lifestyle you are in and can afford without being strapped by mortgage, rent, car payments and bad debt. After all these credits are obtained, your employment can be evaluated. If you have lost your job, you can take a credit to go to school to reeducate yourself. If you are currently employed, the 2 yr moratorium stands. You stay employed so as not to disrupt the balance of everyone all of a sudden wanting to be Stock Brokers or MD's and no one wants to work at a retail store as a cashier. And hopefully after these 2 yrs, the economy will be back to an even keel that more jobs will be available so those out of work, or in school can obtain a decent job with decent pay.
The 4th draw will be to create a retirement account. One that cannot be touched until the age of 65.
The 5th draw will be to create a college fund for your child/children that cannot be used for anything but college.
The 6th draw will be to purchase health insurance. The credit will be extended for 2 yrs - giving you enough time to incorporate the payment into your budget, or hopefully have employer coverage by the 2 yr date. If you already have health insurance, you are exempt from this credit.
Once everyone has a home, a car, bad debt paid off, health insurance, retirement funds, and college funds. Their credit is cut off. It's up to them to figure out how to keep from getting into overextended situations in the future. They can either take out home equity lines and run up their credit card debt, or be responsible and happy living within their means. This has been a tough 2-4 yrs for many. And I think if given this kind of opportunity - many will be content with their lifestyle and set goals and levels of success in steps, rather than with irresponsibile behaviour.
Will this take monitoring%