A New Kind of Bailout
I purpose that instead of bailing out GM, AIG, BoA, and any other initailism you can think of, we turn our attention to the industries that can save us – not those who’ve let us down.
GM’s $500 million dollar bailout is absurd. Sure, it saves thousands of jobs now, but it only puts off the inevitable: people will find they use cars less and look to buy more energy-efficient cars in the future. The GMC pick-ups will be reserved for the construction manager who must use the car for work. The weekend-warrior Lowe’s customer? They’ll be driving a Honda Civic soon enough.
While I see the merit in trying to save the US (and, arguably the world) banking system, I think the Obama Administration is overlooking some life-saving industries here. My local farmer (yes, I have one), I estimate makes $20,000/year. That’s below poverty level. Think of the change he’s making: through the Community Supported Agriculture, he’s promoting local business (you GOP’ers should love this), saving gallons upon gallons of gasoline by farming three miles from where he distributes his goods, and maintaining an organic, easy-on-the-earth agricultural system. So I purpose giving the local farmer and others like him, $50 million of that GM money. My bet is the farmers turn a profit next year – versus GM’s estimated 5 – 7 year turnaround. And as an American taxpayer, I’d like my loan money back.
How about the emerging industries that can pull us in a new direction? While the Obama Administration is giving $2.3 billion toward renewable energy ventures, this may not cut it. We need industry-wide standards and a revived attitude toward sustainability. Look at the smart companies who are getting more of their energy consumption from renewables every year. They’re going to be around another 50 years. But those green-washing companies? They’ll be in Bankruptcy Court dreaming of windmills and landfill off-gases.
Lastly, let’s look beyond the employment of our fellow citizens to their health. The obesity rate has jumped 1.7 percent in the past year. This can be largely attributed to the average consumer’s tightened wallet as McDonald’s is much cheaper than Whole Foods. But the cost of the high rate of obesity is considerably more than we’re spending on bailouts. So instead of spending now on bailouts and spending more later on health care, let’s spend just a little now on curtailing Amerian’s unhealthy eating habits. Five hundred and sixty million Big Macs are sold per year. So for each Big Mac sold, the US government will give $0.50 toward decreasing the wholesale cost of a McDonald’s salad. Add to that drastically lower retail price a discount for biking to McDonald’s and that may shed ten pounds/person/year. It’s a fairly unresearched proposal, but if we cut the cost of obesity by one-fourth we could bailout another doomed US company. And nothing gives taxpayers more joy than that…
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