Hey Congress, Save The Economy, Pay Off My Student Loans

As the trough widens to include makers of crappy cars, I figured out the solution to our economic problems. A bailout of student loans, plus five grand in cash, but only if the bailee promises to use the five grand and the extra money they will then have in their budgets to buy a new car from Ford, GM, or Chrysler.

It would be perfect.

Who knows what it would cost, but it has to be less than three quarters of a billion dollars. There’s probably thousands of people with student loan payments equal to a decent car note. So it seems expensive. But costs would be cut at the bottom. The purchase requirement would weed out anyone who doesn’t really need the bailout; you probably would not take the deal if you only owed a few grand in student loans.

It wouldn’t be that hard to administer. As proof of purchase, the government could require a copy of your new registration within six months of receipt of the funds. Failure to make the purchase means you have to repay the bailout, with interest.

It would reward positive behavior. People with student loans did the responsible thing. They worked hard and got an education so they could have good jobs and not be burdens on society. Don’t we want to encourage that? These aren’t greedy investment bankers, crooked insurance companies, incompetent auto makers, reckless home buyers, or any of the other poorly behaving people and entities we’re currently rescuing. There’s no moral hazard here.

It would also save the auto makers. I’m not sure they need saving. They’re dying because they deserve to die. They make lousy cars, and have for years. If they made a better product, they would not need help. But if we have to save them, at least this would be a little closer to a free market than simply handing over bucket loads of taxpayer dollars. This way, I get something in return.

And it would also be a great way to finally end all government aid to the Big Three. If not enough folks take the deal, what does that say about those companies? Their cars are so crappy that people won’t take them even for free? If this doesn’t work, no one needs to feel bad about letting GM, Ford, and Chrysler die.

So how about it Congress? Everyone else is getting a handout, how about us responsible people for a change?

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One Comment on “Hey Congress, Save The Economy, Pay Off My Student Loans”

  1. […] Read about it here. Vitter is strongly opposed, the rest are undecided. I need to e-mail them my plan. Explore posts in the same categories: […]

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