pmwsoy Economic Stimulus Plan

Part 1
1. Semi-nationalization of Citi, BoA. Hold preferred stock. Shares purchased under $4. Replace board. Cut at least 30% of jobs. Enact relative pay scale (hierarchy. person above makes no more than 20%), performance-based bonuses based on profits of your group, not company revenues. Legitimate consumer credit bill of rights. Cap interest at 10%. Ethics reform in lending.
2. Waiver, en masse, of personal credit card debt.
3. Government takes hit on stock price. Probably goes under a dollar.
4. Kill dividend (if not already done). Operate at a loss for at least a quarter, maybe 3. Government infuses cash if necessary to keep company afloat.
5. Dumb Americans start using their credit cards again.
6. Companies then become attractive because of the incredibly low stock price. Stock price goes up quickly.
7. When companies in black, begin systematic sell-off.

Part 2
1. Cancel student loan debt

This is a bi-partisan measure. It satisfies the Republicans because it gives the individual choice to spend her money. It is also a market solution to the problem and would have immediate effects. Instead of the government choosing which industries to subsidize, it allows the individual to spend money in a hugely diverse set of ways. Also, depending on how much the government has to spend to sustain viability, the government will make a large amount of money in the end; profiting on selling shares purchased for almost nothing.

These companies should not get back to the market cap of old. They were completely inflated and unsustainable. A new ethical lending system would immediately help the economy.

The price of education in this country sends a strong message - if you were born poor, you will stay poor. Yes, some poor people are able to attend schools because of grants, but this is only for the elite of the poor. I have no study to cite, but I would be willing to bet grades in high school have a very low correlation with overall financial success in life. Grants do nothing for average students or students not performing well because of centuries-old institutional barriers to education.

Furthermore, the number of people having to work jobs they do not want in order to pay off debt is crippling our society. Imagine what could be done regarding poverty and social justice issues if lawyers and doctors did not have $100k+ loans to pay off. Imagine the immediate economic stimulus an extra $300 a month in the pockets of working professionals would provide. Or the number of small businesses that could emerge which lead to the next Google and Microsoft.

There are also psychological aspects to these ideas; something that should never be overlooked or underdeveloped. (one example - consumer confidence is one of the largest factors behind the value of our money) Never underestimate the impact of people feeling happy about their situation in life. People happy in life need less, which works towards a more environmentally sustainable future. A more educated population leads to a more diverse set of ideas, ultimately leading to the most effective and encompassing solutions to problems. The last 3 economic crises have shown what happens when the top 5% of people go to the top 5% of schools and run everything. We are no longer in the industrial revolution where we can sustain society by having a small elite group of educated individuals control all decisions and let the rest of the hoi polloi work factory jobs. These measures also show we really do value education in our country instead of it just being another political talking point. Education is now absolutely necessary to compete globally. Imagine throwing our collective intelligence at solving our issues instead of just letting the precious few who are lucky enough not to have to work 20 years in a job they do not want to pay off something as necessary as an education.