Washington Math = Taxpayers’ Burden

As we draw to the close of one of the most tumultuous years in the history of the United States of America, I ponder the cause-and-effect of the course which led us to the edge of the cliff of disaster. Sifting through all the pomp and circumstance of Washington politics, I have to wonder if the answer is not as simple as math. Washington math! The only problem is no one in Washington seems to be able to explain it, even if anyone there knows how to use it.

Treasury Secretary, Henry Paulson, Jr., Federal Reserve Chairman, Ben Bernanke, President Bush and Capitol Hill lawmakers all step forth with confidence, but none offer assurance that they have the answer to the problem. Quick action by the Bush administration garnered minor fixes for AIG, Fannie Mae and Freddie Mac, Wall Street and banks, while Congress has put on the brakes for doling out an uncertain $38 billion to Detroit automakers with shaky plans for repayment of the government loans.

According to economist Mark Zandi with Moody’s Economy.com, the figures proposed by GM, Chrysler and Ford will do little more than stave off the impending doom for several months, but will not ultimately save GM and Chrysler. Nor should the taxpayers have confidence in recouping their money. An article published today in the New York Times, (Auto Executives Face a Hard Sell on Capitol Hill), by David M. Herszenhorn and Bill Vlasic, offers a clear picture of yesterday’s hearing on Capitol Hill where the Senate Banking Committee once again grilled the Detroit executives. Although no resolution has been reached to date, it is obvious to all that some provisions must be made to prevent a “cataclysmic” result for our economy, as stated by Mr. Zandi.

The Los Angeles Times ran an article on November 30, 2008, which points out that the long-term costs of the bailout may reach “an estimated total of $8.5 trillion –half of the entire economic output of the U.S. this year.” One only needs to read the headlines of mainstream newspapers, watch the thirty-second news breaks at the top of the hour on cable news stations, surf the blog sites on the worldwide web or walk by the tabloid magazines in the supermarket check-out stands to glean the severity of the situation Americans face today.

It may be that the numbers have become too large for Washington politicians to tally. Perhaps the “Washington math” has run its’ course. Perhaps it is time for the American taxpayers to step forth and offer our own proposal to Washington. I propose it can be as simple as a basic math problem. According to Wikipedia there are about 138 million taxpayers in the United States as of 2007. Why not write a government stimulus check in the amount of $50,000 to each of the 138 million taxpayers for a total of $6.9 trillion, and allow the taxpayers to jumpstart the financial wheels by buying automobiles from GM, Ford and Chrysler rather than bailing them out. Oh, and by the way, members of Congress, President Bush and President-elect Obama, you can then thank the taxpayers for saving $1.6 trillion for all of you to squander any way you see fit!