An Alternative To The "Stimulus" Package

Instead of $3 Trillion in new government spending and giveaways to Wall Street's Moneylenders, we should consider an alternative. Take that money and set up an IRA for each and every household in America. Assuming there's 80 million households, that would be a nest egg of $37,500.00 each. Invest the money solely in American corporations and financial institutions.

This would accomplish several things:

- The money would not flow through the hands of government, where every dollar is immediately devalued at least 35% by the cost of government and the corruption inherent in letting public servants do as they will with somebody else's money.

- None of it would be spent on useless and ultimately counter-productive one-time rebates of a measly $1,000.00, otherwise known as Transfer Payments.

- At a mere six percent interest, families would realize a yearly income of $2,250.00 to be used as they saw fit, either to spend or save. It would also be a hedge against the inevitable albeit temporary inflation that would result from pouring such massive investment into the markets in a relatively short period of time.

- Every family in America would have a legacy to pass on to their children as a hedge against future Social Security obligations.

- The money would immediately recapitalize the American economy in a manner far more efficient than the dreadfully underscrutinized giveaway to the Banks.

- It would drive up stock prices by putting trillions of competitive capital into the purchase of stocks.

Best of all, America will have created in a single stroke another 100 million capitalists among our lower classes, all with a stake in responsible governance and fiscal responsibility on Wall Street. Either the Federal government believes in the Capitalist economy that funds their tax revenues, or they don't.This is the bold thinking Obama needs to embrace. It's consistent with his vow to spread the wealth, and insure that those less well off benefit from our Capitalist society.

It would however, deprive Democrats of some of the Nanny State control they have exerted over the economy since FDR. From my persective, yet another happy outcome.

I'm not so sure Obama would think so.