Readers, Some newsgroups have welcomed my thoughts on an economic stimulus plan . With the vote so near in congress, I’d like to revisit it.
Their stimulus package is near 1,000 billion.
I say set up Community Bank Accounts, one for each state. The money is put into local banks in that state with these two requirements.
The banks must give a solid interest to get this massive amount of money – say 5%, and they can only lend to people and companies in that state.
The interest on the money goes to the state to spend. The capital is never spent, not one dime is ever spent. Instead the capital is used to generate the interest for that state.
Now specifics.
1,000 billion divided by 50 = 20 billion. At 5% interest that capital brings in 1 billion or 1,000 million every year. That is 83 million every month. Because the capital is NEVER spent the 83 million in interest comes in every month FOREVER and EVER and EVER.
I would suggest that the money be spent this way. The first month’s interest goes to the most populated county in the state. The second goes to the 2nd most populated county and so forth. When you get to the very small rural counties you might bunch them together to get a minum of 10,000 population, treat them as one county, and give that group their share. Then start all over again.
Some benefits
1. Capital is never spent
2. Interest comes in FOREVER AND EVER – 83 million each and every month.
3. Banks have money they must loan out to local customers.
4. There is very little bureaucracy.
5. It is fast – and pumps money the month after it’s set up, into each and every state.
6. The money is going to be spent anyway. Why not use it to methodically wipe out poverty in each and every state.
Tom Hendricks (editor of the 16 year old zine Musea) http://www.Musea.us (named as one of the best ZINES by UTNE magazine) http://www.Hunkasaurus.com ( Music -4 full CD’s of free Post-Bands Music) http://www.Musea.wordpress.com (Blog for Musea) http://www.Myspace.com/Musead (New Friends welcome)
