The airwaves are full of talk of the Economic Stimulus Package. Like me, I am sure you have heard both the Republican plan and the Democratic plan to stimulate the nation’s economy. Now you get a chance to hear MY plan. My plan is based on rewarding smart behavior instead of stupid behavior. It is not about bailing out anyone, instead it’s about giving tax incentives to those who do the right thing with their money and their lives.
The biggest challenges facing our country are: Housing problems, a crumbling automobile industry, consumer debt, healthcare crisis and an uninformed society making stupid decisions. My plan will deals with each of those areas in a positive way.
1. Increase the tax incentives for people who buy houses. I mean give some real hefty tax incentives. Something like 10% of the purchase price. This would reduce the inventory of houses and would allow the mortgage holders to exchange bad loans for good loans from people who would actually repay their loans.
2. A tax break for anyone buying a car that gets better than 25mpg. This would reduce the inventory of new cars and help the auto manufacturers and fill our roads with cars that get better gas mileage. It would reduce our dependency on foreign oil. And it would send a message to the manufacturers to make cars that get better mileage. I would also add a tax (an Idiot Tax) to anyone buying a car that gets less than 10mpg.
3. The average amount of credit card debt per household in America is $9K. And it is at an average of about 20% interest rate. Therefore, I would offer a tax break to anyone who paid down $9K on their credit card debt. This would give the banks about a trillion dollars they didn’t have and it would reduce the amount of consumer debt.
4. Healthcare. It’s a problem. Why not reduce our need for so much healthcare? Doesn’t that make sense? If so, then let’s attack healthcare at the source of the problem: illness. The top two causes of illness in America are caused by obesity and smoking. Therefore, let’s incent people to lose weight and stop smoking. We would reduce our need for so much healthcare and would become a healthier society in the process. AND we should add a $5.00 a pack tax on cigarettes to help with the smoking problem (another Idiot Tax.)
5. Tax breaks for any and all education. Period. Our society is simply not as smart as it should be. We make bad decisions personally, financially and professionally because we are uninformed and many times, simply because we aren’t intelligent. If we KNEW better, we would DO better. So offer a break based on the dollars anyone spends on any type of education including formal education, seminars and books. Can you imagine? Buy a Larry Winget book and get a tax break for doing it? Cool, huh?
That’s it. Simple. Based on rewarding good behavior and positive performance. Perfect? Not by a long shot. Hard to implement? Of course. Open to manipulation and abuse? Sure it is. But it would send a message that proper behavior with positive results carry rewards instead of bailing people out for bad behavior.
Okay, comment on my plan or the plan as you see fit. HOWEVER, do not make your comments incendiary diatribes that attack Obama, Pelosi, Reid, Franks, McCain or any other Republican leader. I am tired of mentioning anything even slightly political and having people’s hate overrun their brains and their mouths. I end up with a war between posters on my blog site. Just don’t go there. I won’t post any trash talk about either side. Make an informed argument or give any opinion you have and I’m all for hearing you out. Spout your hate for the “other” side and your comment won’t show up. Censorship? Damn right. We play nice or we don’t play at all.
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People Are Idiots And I Can Prove It: A New York Times Bestseller. If you don’t have your copy yet – why not?
I like it, Larry. Each point has a positive, forward-looking incentive. I especially like that you use tax breaks in every point.
Your first item may actually become law. They are trying to include that right now. I think some are afraid that it will send housing prices artificially high again though. I’d definitely use the 15K they are considering to go buy a rental property at least, but only if I knew I wasn’t losing that 15K in the price of the house.
I like it. I do have another idea though:
1. Encourage people to buy houses within their means (max 3x verified income). Don’t help people buy more house than that. Don’t bail out anyone who can’t meet this requirement now.
2. Increase gas taxes while eliminating CAFE and reducing payroll taxes. Our European friends don’t impose CAFE standards to control gas mileage; they might be on to something. Reducing payroll taxes seems like a good idea right now too.
3. I wholeheartedly agree with you on this.
4. Add everyone to Medicare. Pay for it with increased taxes on tobacco and junk food. Then encourage people to lose weight and stop smoking, though I think paying through the nose for tobacco and junk food would do that too.
5. I agree here too.
I’d buy a investment house in a heart beat if #1 were implemented. Without hesitation.
I am concerned about the people who drive trucks for business being taxed for getting less than 9mpg.
I think a contingency plan around the landscapers, farmers, etc. who need trucks and large vehicles that get crappy mileage to run their home business is needed.
For education, more grants/loans for school is a must. I agree that our population as a whole needs to be educated. Period.
Keep up the good work Larry…somebody is listening!
Larry, love your show and your mission. Thanks for all you do.
Fundamentally, this is a great start to an economic stimulus. I think these are positive, future-looking, and incentive-laden. They reward good consumer behavior.
I’ve got the same concern as PT about #1 — price inflation. I think an incentive-based way to solve it would be to provide federal matching funds towards the down payment of a residence. I’m not sure where to cap it, but say 10% of purchase price.
For example, you want a $150,000 home. If you save $10,000 for a down payment, federal stimulus funds will match up to 10% with another $15k to contribute to your down payment.
Also, regulate it to where people can’t rob Peter to pay Paul – in other words, advances on credit cards or HELOCs and the like DO NOT qualify for fed matching funds. This gives incentives to those who SAVE UP money for purchases. It provides the rewards of this mess to those that have paid their bills & lived within their means during the bad times, and is policy that teaches our citizenry the value of down payments and being financially invested in their assets — in other words, it promotes sound personal finance practices.
This [matching funds] is also something we can do with college tuition and the auto industry. Any pre-paid tuition can be matched to certain levels. Also lift the $2,500 cap on deducting student loan interest. Any down payment on a car can be matched as well.
There are people that are set up to win in this financial downturn. Let’s set them up for victory and bring the rest of us back from a recession with them leading the way.
I agree with you 80%. As a person who is also fiscally conservative and socially liberal, I really resent the current mess. I work hard, save/invest everything I can (39% of my gross pay), paid off a 15 year fixed-rate mortgage in 11 1/2 years, and still tithe to my church and donate generously to selected charities. My friends and I get pretty creative to travel and otherwise have a good time while staying on a budget. I can do all that because my parents taught me by example to live below my means, don’t buy what I can’t afford, and know the difference between what I want and what I need. That said, I agree with all your suggestions except item 5 – Tax breaks for any and all education. I know way too many people who are book smart and can’t be trusted to walk to the ATM without supervision. Tax breaks for practical education, yes. All education, no. And if you could find a way to make it mandatory for everyone to take a money management course, all the better.
I love the education credit plus on the obesity and no smoking – give credits to us who live the lifestyle of health and fitness already! It is about time we focused on preventive measures and not reactions to problems we let grow so big.
Good morning Mr. Winget,
I loved your books and really enjoyed your 5 point stimulus plan. I have a newsletter I make up every week and send it out to my customers. Do I have your permission to print your 5 point stimulus plan in my newsletter?
Thanks,
Paul
I agree with these points but there is not enough pork or political favors in this plan to make either side vote for it in the senate!
I agree with almost everything except (and I’m bracing myself here for attack…) taxes on cigarettes. As hard as it is to believe, decreasing smoking has actually INCREASED our expense on health care in this country…why? Because fewer people are dying because of it, living longer and cost more in the long run. So, if we want to eliminate smoking, tax it because it is nasty NOT to save money.
In my opinion, the healthcare industry is almost as bad as Wall Street. Have you visited a hospital lately? Atriums, ampitheatres, mall like atmospheres, costly decorations and HUGE salaries for the people who run them. Healthcare is BIG BUSINESS and there are too many people getting wealthy from it while not enough people are getting the care they deserve.
AMEN!
How about eliminating the bloated tax spending? If 10% is good enough for God, why isn’t it good enough for the government? And even better, how about you only take money out of my paycheck, and that’s it? I get taxes taken out of my paycheck, then when I purchase goods or services, I have to pay taxes on those too. I’m getting taxed at both ends.
I wholeheartedly agree with paying off credit cards. We have become too much of a debt society, and many are awaiting the ‘bailout’. As I always change my quote each week, this week’s has been: “If you’re waiting on the government to fix your problems…let me know how that works out for you! “. Accept your own responsibility for screwing up your spending habits. You charged more than you could afford. Cut up the cards and quit buying junk that you don’t need to impress people you don’t even like.
It’s too bad they don’t teach financial education in schools! They teach you everything there is to know about readin’, writin’, and ‘rithmetic, but not how to create a budget and live within that. How many college campuses have those “Welcome to College” days where they screw up people by providing their first charge card as an adult. Financially literacy is a void in the human education process and many first time card users max that sucker out while struggling to pay for college. Don’t buy it if you don’t already have the money…just like Grandma and Grandpa used to say!
Larry,
I like your proposal!
I’ve read many times that President Obama has his ear to the people. I wonder if he would read your proposal?
I think Karen made an excellent point. Her parents taught her money management. It seems a majority of people weren’t taught these skills or they don’t care to use them.
I believe Brian had a good point also about “no pork” in your plan. Ego and greed seem to run rampant these days. Isn’t that what got us into this mess in the first place?
Good behavior or choices should be rewarded, but shouldn’t we have good behavior and make good choices because it’s the right thing to do instead of doing it because we can get something for doing it?
It seems all out of balance to me. I think some common sense and good choices (even when forced) is needed. And I can’t advocate enough for education!
Thanks for listening Larry. And thanks for all you do!
Your plan is right on track with one loop hole. Where are the jobs going to come from. We need to reinvest in America bottom line. Stop outsourcing, make it hard to import and help our homeland create jobs.
Finally someone comes up with something to get people really thinking!! It’s non-partisan, it makes sense and could really get things moving.
Thank you for addressing the REAL issues that America faces. The rest of the “bailouts” that certain industries need are brought on by their own doing and are driven by greed and hubris. It all starts at the bottom…with the folks on “Main Street”.
Larry for President! No matter which ticket he runs on!
Thanks Larry!
I agree that we are paying for the ignorance of our population. But, school is what has caused the problem. My 20 year old daughter cannot spell because of the phonetic & creative spelling concepts taught in the 90s. Until schools start teaching important things, formal education will get us more of the same. I am not convinced that our population is not intelligent, but that we are ignorant in the true sense of the word. We don’t know important stuff.
Larry-
I wish we could get Obamas blackberry number so this could be emailed to him, he has a tall order to fill!
I like what you are saying, but in addition to the the 25 mpg, they should be built here in the USA. This would help put America back to work.
Joe
I think the only way this will pass is if you include $25 billion for the study of the mating habits of the now extinct albino Sabre-toothed tiger.
How would it work if instead of paying all the medical bills if they would pay the insurance premium instead?
Hi Larry: well said!
My one addition would be in regards to Healthcare: make it transparent and not linked to employment. You should be able to buy AFFORDABLE health insurance just like auto insurance. Affordable because you can buy into groups, something I can’t do as a self employed person. This would also allow people the freedom to move around states and jobs without worrying about pre-existings.
And transparency? My doctors have been bugging me since I turned 50 to get a colonoscopy, plus a an upper at the same time. Blue Cross would not tell me what costs would be covered; they said I had to get that info from the contracted hospitals. I still have to pay 30%, plus my premiums, so of course I needed to know what my liability would be. Neither of the two hospitals here could tell me what my cost would be because they said they wouldn’t know until the bill was submitted to Blue Cross. Catch 22. However, they’d give me an “estimate”. One hospital was $15,500, the other was $6,000. For an outpatient procedure! And neither could tell me how much of that I’d have to pay–other than 10% of the balance monthly. Ahhhh!
So even though I pay a substantial chunk monthly for insurance, I can’t afford to get the preventive care I should be doing.
This is just WRONG.
ok, i took a few minutes of the day to read your thoughts. there are other things to do, but, the tag title gained my curiousity.
common sense is what is America requires more of across the board. thanks for your particular venue of venacular.
Larry Winget for President USA. i think you and putin would get along just fine.
seriously, thanks for your views etc. am reading your book in sparse moments, and to date cannot offer any intelligent comment regarding it, cept thanks for keep’n the common sense hose unkinked.
And Mr Winget,
in each day that passes
as each moment unfurls
it is to be fully who you are
for truely, your gift unto the world
most sincerely
box of rocks
( but not cold wet rocks at night )
also, i must say imposing an idiot tax was my favorite part of the entire Winget stimulus package. However it would never pass, for idiots would never allow for it. I think Ross Perot had it pretty good with a flat tax – 10% across the board. and then some accountants and atty’s that wernt that good anyhow could go back to the basics of chopping wood and carrying water till they found another venue of contribution to humanity.
before enlightenment,,,,,,,,, chop wood carry water
after enlightenment,,,,,,,,,,,, chop wood carry water
in all events,
trust the self.
most respectfully
box of rocks
I would add one more point to #4: Our government should stop subsidizing the growing of tobacco. Create a plan to transition those farmers to other crops, (if they need it) just like we are doing with opium farmers in Afganistan. And add a big tax to junk food and junk food manufacturing. Make it hurt to be overweight. Restraunts make their servings too large, encourage them to offer smaller portions to those of us who want them.
You should be on Obama’s cabinet. Better yet, maybe you should be President!
Larry,
Great ideas. You inspired me to kick off a few of my own ideas:
1. Homes owners that pay their property taxes should also get a tax cut, not just new property owners.
2. Tax deduction for medical expenses over $2,000 per year per household.
3. Free training for all unemployed, max $10K per person, per year.
4. Require all doctors to take health insurance if people have it. Some of these doctors don’t want to accept any kind of health insurance and that creates a nightmare for people who have insurance plans, not to mention those that don’t.
5. To build on your health promotion idea, the government should award vouchers for health club memberships. Tax deductions for payment on health care memberships. As you mentioned, incent the behaviours.
If everyone generated 5 ideas to match yours, we’d come up with some good stuff. Thanks for putting a positive message out here!
By the way, I got the “thankful” message today, and believe me I am very thankful for all I have.
Best regards, Sam
I agree with you Larry, but as you say people are idiots and most of them will keep on sabotaging their life no matter what you offer them. Humans have a herd mentality, idiots will follow other idiots
The focus at the moment is on the negative because it so easy to find. We should make more effort to report the positive.
Yes, we have to acknowledge that that it is tough and yes we have to learn from our failures, but, then move on and create the future we desire as individuals and as a nations.
Australia although more protected from the credit crisis than the US is still being affected because this is a global crisis. I think it about time we all grew up and act to solve it as the planets problem not as individual nations.
But Laaarry… Yer stimulus plan doesn’t have big spending and big government. Can’t we waste maybe a 100 billion to keep the Democrats happy? LOL Anyhoos…
I wanted to say I love yer “Pat On The Back”… But instead of putting it on the wall, I put it in my office chair… Now, everytime I sit down, I sexually harass myself!!! :o)
the only concern I have is punishment for being successful. If you make too much money the government does not extend all benefits to you. For example, last year we made too much money to get a stimulus check, but the bonehead I work with and can’t manage money or his career received almost $2,000. Guess I just need to be dumbed down.
Larry, cigarettes are so addictive that many smokers wouldn’t even quit if you taxed them $10 a pack. Your plan would just be taking money away from people at a high risk of lung cancer and emphysema.
Larry, why aren’t you in Congress?
Your plan is excellent, I would like to add a couple of measures to it:
1.- If Government is to make any investment the first one should go to our railroad and train system, build faster trains eliminating the need for so much oil, pollution and stress (which will improve health too). Look at Europe.
2.- Give tax breaks for usage of alternative energy that works, and give tax “bonuses” (in a form of a big credit) to people with new workable ideas contributing to the reduction of our dependency in foreign oil.
I would love to see #1 in place, so we can sell our house. But I would also like to see a tax break for those who want to build a house also, which would support other industries as well.
I would like to say that I would love to see all those changes implemented. Many people need encouragement to do the right thing. However, I am not a believer in taxation as a means of social control. Yet this is exactly what parts of the tax code tries to do (i.e. child tax credit, earned income credit).
Of all they changes you suggest I really only disagree with the credit for “repayment of credit card debt”. Now before you lose your top, please here me out. Yes, we Americans on average have too much credit card debt, and paying that debt would help us individually and in the long run possibly the country.
The only problem is if the majority of Americans paid back their credit card debt, the money supply would shrink (deflationary) as a result. Money is created by the creation of debt and is destroyed by the repayment of that debt. On the other hand I imagine the Federal Reserve could offset any deflation by increasing the supply of money(which they have been doing like crazy since this crisis has began).
I guess my ideal world would be either a simple one tax rate system, that would not give anything to anyone. The only exception I have to that is that at the poverty levels I would remove the tax completely. But there would no longer be any more refundable tax credits allowing individuals to receive more than they pay in. Implementing the one tax rate on all others to encourage economic growth and not punish those who are high income earners.
Thanks for reading this.
We got INTO this obscene, record deficit by financing unnecessary war and corporate welfare. There’s no getting around that. How is it “wasting” money to spend on education, healthcare, public services (like fire departments), infrastructure, energy efficiency, the environment and attracting business to our communities? “Oh, the debt we’ll be passing on to our children! Won’t ANYONE think of the CHIIIIILDRREN??” The chiiiiiildren and everyone else are already in debt up to our eyeballs because of what came *before* this bill (that’s what everyone should REALLY be indignant about!!). We need to start rebuilding everything that’s been destroyed and neglected. Unfortunately, that takes money. And that money has to come from the government and its citizens. Not pretty, not fair, but that’s the corner we’ve been painted into. It is what it is.
And another thing… stimulus checks don’t work. They never have. When people are in this much trouble and you send them a check for $600, they’re not going to run into Wal-Mart and buy crap. They’re going to save it. They’re going to pay bills with it. They are NOT going to “stimulate the economy” with it. It ends up to be just a gift, and we end up worse off than when we started because we’ve just added to the deficit and not gained a thing because everyone basically kept the money instead of pumping it back into the economy. You don’t need a degree in economics to see that. Don’t just hand people extra money for the sake of it, that’s stupid. Do what Larry says… offer people tax incentives for doing smart, productive things with their money. Hit people’s pockets for doing dumba$$ things with their money that harm the environment, increase our dependence on foreign oil, overburden our already unaffordable healthcare system etc.
I don’t have a mortgage. I don’t have a car. I don’t have kids. I don’t smoke or drink. I don’t carry debt (even though I make only $38k AND I live in the most expensive city in the country). I didn’t vote for war-mongers. I didn’t do anything to help cause this mess, and I’m someone who isn’t going to get much of anything out of this stimulus deal tax- and incentive-wise. But I’m still for it, because things are SO BAD that only drastic measures will do. We need to do what it takes to get this country back on its feet again by not only creating more jobs, but ensuring our workforce is healthy, safe and productive. It’s all connected. WE are all connected. And we’d better realize that, sooner rather than later.
(Larry, sorry for the length and for anything that might have come off as “political.” Obviously censor as you see fit, it’s your ballgame.)
Hi Larry,
I’ve just recently started reading and listening to your books/audio CD’s/Nightingale program. I love your stuff! I can’t get enough of it. You are so brutally honest! And it is so refreshing. I live in Canada. Your 5-point stimulus plan would be excellent for our country as well…other than help our country and its people……as a bonus maybe it’ll help melt the snow a little faster! Thank you.
Larry,
Those are some good ideas but I have a better suggestion, how about we do nothing.
Let the correction happen without the Idiots on the Potomac doing anything.
All these problems are occurring because the government got involved and made it too easy to get credit and go into debt by being a nation of consumers/spenders and not a nation of savers. We need to, as a nation, take our medicine without looking for the quick fix which will only bite us on the butt years from now when our nation’s creditors come knocking on the door looking for their money.
The best way out of this mess is for people save and buy only what they can afford to pay cash for. We also need to have the Fed to stop the printing presses and return to a sound monetary policy. Keynesian economic principals do not work. Sure it will be painful in the short term but it is much better than trying to keep the bubbles inflated and only prolonging the agony.
People really need to read on the principals of the Austrian School of Economics. Books by Mises, Hayek, Rothbard or Hazlitt. ‘Economics in One Lesson’ by Henry Hazlitt is a great place to start. I’d also recommend books by Congressman Ron Paul along with Peter Schiff and William Bonner. And if you want to see how bad thing are really going to get, watch IOUSA which was recently shown on CNN.
Most importantly, we the people need to stand up and throw out the bums who have the interests of Wall Street, Lobbyists and other special interests at heart rather than what is best for the American people.
Sorry for the rant but it is getting to the point where I want to break my TV every time I hear some knucklehead say we need to throw good money after bad. But hey, at least that would be stimulating the economy 🙂
Larry. I love this plan. My only suggestion would be to require folks that made dumb decisions to come up with a plan of action. Similar to a business plan. That plan would show how they got in trouble.
Good start Larry.
Get the government out of the way. Government created this problem. Our founders framed a constitution with a small government limited in scope so this sort of thing would not happen. It was written so the common man could understand the intent and meaning. We are a nation that has a government, not the other way around.
The current proposed legal plunder will only patch things enough to payback politcal hacks and interests. To fix things long term, and a proper fix won’t be fast, we need to return to our constitutonal and legal roots. Good intent and percieved virtue are not enough to over ride rule of law and confiscate the productivity of a whole generation in order to satisfy a few whining special interest groups. We know what got us here, ignoring that will only put off the real pain. I keep waiting for the person with enough cajones to stand up and ask,” where do you have the authority to do what you are proposing”?
Both parties have long ago abandoned the constitution, and a couple of generations of Americans have been dumbed down so dramatically to the history of this country it scarry. As you say Larry, people are idiots, and we have all allowed this to happen. We are more concerned with getting cheap plastic goods at Target than what is happening in our country and why.
Larry-
You present a very logical, well informed argument….any chance you’d be willing to pitch that in person to the folks in congress? I’m sure there would be huge grass roots support to get your ideas shared beyond your blog.
Rob
Rob – I would love to present that to Congress but they don’t want to hear from any of us. And it is too late now – this thing will pass this week. I appreciate everyone’s comments! Keep ’em coming!
Larry,
Great ideas! I have some ideas and thoughts of my own.
I read only one person whose thoughts address what is at the core of our problem and that was Marce#13. “Where will all the jobs come from?”
The situation we are in did not happen in the last year, or the last 8 years. We have been creating this problem for the last 30 years or more. Every year 1.2 million people (legal citizens) enter the work force. Let me see, how many jobs have we lost in 2008 alone? The answer is not banking and finance, the answer is not to fix housing. The answer is stop exporting our economy. We cannot survive as a nation if we do not make something; if we do not produce something besides consumers in a service based economy…we have to make something. The Chinese signed a strategic economic alliance with India two years ago to be THE economic power in the world for the next 100 years. They have a plan and they are executing it. We have no plan!
Our economy is run by lobbyist, accountants and lawyers (No offense) who have but one objective to earn their reward. They only look at the bottom line. Will we make the target number for this week, for this month, for this year, will we make plan, will we make the stock holders happy, will we get to keep our job, and will we get a bonus. The Chinese are looking out 100 years and we can’t see past tomorrow.
Outlaw lobbyist! Become patriots!
Shrink government to do what they were designed to do…protect Americans against invasion from our enemies (some of them live right here) not baby the sit the world and those who under perform.
Make it affordable for business to be competitive with the rest of the world to do business in this country by lowering corporate taxes and cutting back on regulations. In fact make America the affordable country for everyone to come scrambling to for manufacturing. We can’t all be IT techs, Wall Street brokers, doctors, lawyers, nurses, bank managers etc.
Sam #25 said we need to offer free training for all those unemployed. I hear this all the time… I ask you…train them for what? Someone please tell me what all of these people are going to do. Train them to do what?
Laurie #33 said she is not the problem. She has no mortgage, does not own a car or have children. Does that mean those of us who do are the problem? We are a large country. If you live in rural America it’s pretty hard to catch a bus or ride a bike to work. If we do not have children well…I guess eventually that solves everything, no one will be here. Rent and don’t make a loan to buy a house until you can afford to buy a house outright…there goes an industry down the drain.
Want to fix America…how we did fix America during the great depression? WWII happened which required us to build things in this country. We put Americans to work. My Grandmother worked for Alcoa inspecting fuel lines for military aircraft. We had American patriots building things and offering services by Americans for Americans. It was America first not the Dollar first.
We have our focus and priorities wrong and it did not start yesterday. This has been percolating for years and years we are finally just starting to see the results. Not very pretty is it.
It’s not too late, we can change, we can make a difference…we have to recognize the core issues for what they really are and want to really fix it as a people, as a nation, as Americans.
Mike, just because I said I didn’t help cause the problem doesn’t mean I’m saying *everyone* who has those things DID. You’re making an extreme leap. Grass is green, but not *everything* green is grass.
SOME people’s IRRESPONSIBLE forays into such areas helped cause the problems. Children: putting yourself deep in debt to send your kids to fancy private schools and universities you can’t afford, outfitting them with all the latest gadgetry because they “need” it, deliberately having 14 kids with no job, etc. Cars: buying gas-guzzling SUVs, when very few of us really NEED to tool around in what amounts to a small truck, while a smaller, more efficient car would do just fine. Mortgages: taking on mortgages you can’t afford, just so you can impress everyone with your McMansion. And BTW, I invite you to attempt to qualify for a mortgage big enough to buy a house or even a one-room apartment in NYC on a salary of under $40k. Good luck with that… a one-bedroom apartment in an outer borough will run you an average of about a quarter-million, with a required minimum of 20% down. Should I have done like so many other Americans have done, and lied my way into a huge low-/no-doc mortgage I couldn’t afford, or not paid attention to the terms of my traditional mortgage, and then defaulted on it? No thanks. I’d rather be more responsible and realistic. It’s not renters who sent the mortgage industry down the drain… it’s irresponsible/dishonest lenders, brokers and buyers. Renters had NOTHING to do with the mortgage mess, and it’s disingenuous of you to suggest otherwise.
My main point was that none of the spending (I’m not talking about appropriations) in the stimulus package will really benefit me much personally because I haven’t done anything I need bailing out of. I’m careful to live within my means and do not take irresponsible actions that require government relief. But I am still 100% for it, because however “we” got into this mess, it’s imperative that we do what it takes to get out of it. Like the woman who went out of her way to have 14 children with no means of support was irresponsible to have done it, but now that she has, we as a society are morally obligated to care for them, because they are fellow human beings.
ANYWAY… Larry, can you believe our idiot governor here is going to impose an additional tax on health club memberships? Yeah, way to go. Penalize people for staying healthy.
Laurie,
My sincere apology. It seems we agree on many issues. Things not said are open to interpretation. For every hot there is cold, for every light there is dark, for every cause there is effect. You don’t have children and you are not problem therefore means those who have children must be the problem. The world is full of gray.
I too rent and don’t own. I have not used a credit card in 8 years. My family has learned to live debt free. Not everyone can do this I understand however we can all try to do our best.
The current stimulas package does nothing for my family or many others but clearly a good stimulus package needs to be put in place. I’m not sure government knows, has the capability or understanding of what that is.
Bringing jobs to the US is still the biggest and best answer to our issues
Larry,
All great proposals.
I like the tax break for cars over 25MPG. Who cares if it is a hybrid or not? Isn’t the MPG what matters? I purchased a new car about 2 years ago, and the hybrid got approximately the same MPG as the regular engine. When I asked, I was told this was because the hybrid had 100 more HP. In other words, in some cases the manufacturers are using the hybrid to make more powerful cars, not necessarily more fuel efficient cars. It should be based on MPG.
The government should make all of your books required reading for anyone on welfare or unemployment. No written book report on Larry’s books – No Check!
A pet peeve of mine is the idea that Capital Gains tax breaks are going to spur investment. What intelligent investor is going to invest money for the short term? If they are going to give a capital gains tax break, it needs to be based on the purchase date of an investment – not the sales date. If I invest in a startup, how do I know what the capital gains rates are going to be in 10 years? I don’t. And I certainly don’t plan to sell during the short time period that I know the rates (assuming they are not changed).
I too, could rant for hours on this subject.
How about these two:
1. Streamline (reduce the time) the FDA drug approval process to get new medicines to market quicker. This will decrease the cost of all drugs (helping an aging population) and allow smaller market drugs to be investigated/made that are now not considered due to costs of the current process. This would probably also lead to more money being put into research in new drugs.
2. Lower capital gains taxes to increase investment in new businesses.
I remember lying awake at night after I signed the papers on my first house when I was 24. “I’m on the hook to pay $400 a month.” That was including taxes! That was 30 years ago. It was a fixed rate loan and a purchase price of $44,000. I knew I had made a commitment that come Hell or high water I had to pay my mortgage. Eight years later we sold for $83,000 and bought a bigger house (2 kids later). Bottom line: people who bought these houses they couldn’t afford should not be bailed out. They made their bed and should lie in it. What do the rest of us who were responsible and paid our bills get out of this? Nothing. Actually what we get out of this is the pleasant gift to our children, grand children and great grandchildren that they get to pay off our ridiculous national debt that we’ve incurred. Republicans or Democrats; doesn’t make any difference. They all spend money like drunken sailors. We’re on our way to socialism for sure!
Where, oh where, is Thomas Jefferson? The federal government is taking over everything. What happened to the constitution?
Hi Larry- I like your point on Health Care. Obesity and smoking are the number one and two reasons for high priced health care. I agree with you on the five dollar a pack tax, but you must just want the money, because they is not going to stop any addict from smoking. I always hear people say when the price of cigarettes goes up that they will quit for sure. Right. What a lie. Addicts lie to themselves and others all the time. The broken promises, resolutions, solemn oaths, i could go on and on.
I totally disagree with you on the obesity incentive. Incentives just do not work. Most people would rather have their stomach stapled with gastric by-pass surgery or take a pill, rather than get up off the couch and stop overeating.
Oh- motivation will not work for either of these two personal issues.
If you agree that this could be a solution, copy and email friends and family. If it gets attention it could quickly pull us out of the mess we are in, solve the homeless problem and various other ills we have going on now.
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CNN reported about a week ago that 2/3 of the economy is consumer spending. This plan would give immediate stimulus to The People who in turn will boost the economy.
1. Freeze all prices where they are today.
Prices must be frozen where they are today for two reasons.
1. They are totally out of control
2. If not frozen and the people get some funds to spend, everyone will raise their prices in an insane way. Gas will go to $50 a gallon or more overnight.
2. Secure the borders – allow no drugs into the Country
3. Population of the USA is 300,000,000
4. Give each adult over age thirty-five – seventy $100,000 immediately.
People would start buying cars, paying for homes or purchase an affordable home. Another bailout to the auto industry will not be necessary. Bank bailout turned out to be a farce.
Give The People the money! This will boost the over all economy within the first week. That in turn would boost the manufacturing industry immediately, and most likely create a backlog which in turn will create more jobs. Include the disabled in this too. They can purchase cars modified to their needs, open a small business and get off disability, purchase or pay off their homes and overall pump up the economy.
5. Stop the tax breaks for outsourcing American jobs immediately. t was a mistake that has come home to roost in a few decades.
6. Give incentives to open small businesses.
7. Institute the Health Care plan for every citizen that Senators and Congress have.
8. Government workers should immediately start paying into social security as all other workers are forced to.
9. Work on a minimum wage plan that would deliver a true living wage for workers.
10. Continue with the job creation programs for every state.
11. Let the banks and business that used poor judgment fail. With the boost in the economy, they will regroup. Stop bailing them out with taxpayer funds that are not helping the people.
12. The People will not fail in this bailout. Sure some of the funds might be wasted, (it will still go back in the economy) but the majority of Americans are thinking, loyal Americans and want this Country to survive.
Larry man, I caught you a couple of days ago on FOX business. WE have a lot of common ground, but there are points to this plan I can’t contend with. First off I want to premise everything with the fact that I believe anybody who is willing to gamble that they are going to be healthy and employed for 30 years is acting irresponsibly. Our country has never went through a straight 30 year period where people didn’t get laid off a lot.
Giving tax breaks to people who say today that they can afford a house is not changing anything. I would agree if you said, “give tax breaks up to 10% for anybody who can buy a home outright with out credit being involved.” But as I believe that health in the free market system depends on the ability to pay for things with cash on hand, any “incentives” ultimately are unfair to people trying not to get involved in the credit game.
The problem with the 25 MPH gas figure is that it would inspire people to buy foreign made goods. Right now the Koreans and Japanese have that market cornered. Before you lay all the blame at the feet of the Auto Industry, I would cite one of about 10 instances where our government encouraged the SUV trend from the US automaker. One being the “up to $100,000 rapid depreciation tax credit on vehicles weighing more then 2 tons” issue. Guess what happen to the weight of SUV’s the instant that happened?
Credit card debt would be a great way to tackle the problem. But first, If I were a credit card company and I knew the consumers could get a benefit up to 9K, wouldn’t I raise my rates and offer some kind of incentive that marketed this to my favor. “Sure it is a 20% credit card, but remember for the first 9k you are interest is essentially free.” I would have a whole creative department dedicated to coming up with ways of making sure my credit company gets all of that tax incentive.
Your assessment of what is the top two causes of illness in this country is wrong. While Heart disease and cancer lead the way in causes, less then 30% of the heart diseases deaths can be attributed to obesity. Less then 15% of cancer can be attributed to smoking. Who is going to determine what is healthy habits and what is hazardous? We are still talking about the USA right? No the big cause of high healthcare cost comes in two forms. 1) a kid leaves college after 12 years of medical school with a 1/4 million dollar debt. He is 30 and looking to start a family. So besides the giant school loan he has pay for his housing too. How much do you recon a fully insured doctor has to make in order to meet his monthly obligations? That leads to the second problem Insurance, like credit cards and long term mortgages, artificially prop up the cost of medical. If a doctor only got paid what a patient was “willing and able” to pay out of his own salary, what do you think the cost of a doctors visit would be. Probably at most 10 labor hours.
Do you know what would be even better then giving tax breaks on education? Making it illegal to give a loan for education. Same concept as listed above. If a college had to charge only the amount a kid and his parents could afford every year, guess what would happen to the price of the credit hour. That is provided the college wanted to stay in business.
These suggestions are how you use the free markets to make honest smart people out of us.
Personally, I think they should liquidate all the crooked politicians, bankers, and Wall Street thieves who fleeced us in the first place–make THEM bail out the mess they made. Let the auto manufacturers fail. If they can’t run a business, then we shouldn’t give them more money.
Alternatively, put an engineer in charge of the auto companies. As a wife of an engineer, I am told that the auto companies’ designers are inefficient. They build from the ground up each time, rather than take a working model and tweak it. They’re reinventing the wheel, as it were, which takes more time, creates more issues with compatibility and getting the ‘bugs’ out when the new models roll out. Streamline the program, save money, and reduce all salaries to $100,000 or less. Houses in Detroit are selling really cheap now; they can live on less.
I have an issue with increasing gas taxes. Washington state has the highest gas taxes in the country and they’re talking about increasing it *more*, or taxing us for burning the gas through mileage on our cars. I have trouble finding a car to hold three kids in car seats that gets better than 24 miles to the gallon–you can’t fit three across in a standard vehicle’s back seat. I’ve tried. It’s minivan time for any parent with three or more kids.
Health care seems expensive because, a) only people in the US have to pay the medication research surcharge on drugs, b) insurance companies setting the fees and refusing treatment or testing until it’s too late, and c) people not paying their doctor bills (particularly from ERs where people go when they have the flu and no insurance). Providing cheap health insurance for those whose employers don’t provide it, and allowing the ER to send people to walk-in clinics (often located very near the ER) when their illness is clearly not an emergency would drastically lower costs.
I am also very concerned that most of this “stimulous” money is going to construction projects for freeways, remodeling projects at schools, etc. Sure, it’ll keep the construction workers and concrete & drywall suppliers in business for a couple years, but there’s no real return on the investment. I would rather see the stimulous money going toward creating jobs that will keep people employed *after* the money is spent, like building light rail between suburbs (esp. in Seattle).
My stimulous idea mirrors what they did in Ireland. Offer new companies a 10 year hiatus on business taxes if they start up a company in the US, and hire Americans (set a minimum number, like 100 new employees hired). Tax-free status will draw them in, employees will pay income taxes, and there will be purchasing power. Win-win.
Most of the responses are rather interesting… stimulate spending again? Freeze prices on consumer goods?
Spending beyond our means as a whole is what caused this mess… People went into debt to buy a bunch of junk they didn’t need and signed on mortagages they couldn’t afford. We don’t need more spending! We need more savings.
The housing market is still out of line with peoples salaries, they can’t afford them thus the spawn of the sub-prime market. Prices are coming down but they need to come down more so people can actually afford them with regular 30 or 15 year fixed mortages. The bailout is only going to slow the pain (while putting the US government in debt it can’t afford) because people still can’t afford the inflated prices.
If we truely want to invest in America for the long term we need to encourage industry and manufacturing to return, rebuild and start making products that we can export and sell to the rest of the world instead of this phony service economy that is now drying up.
Hi Larry,
Great ideas. I would add to what you’ve listed that though fundamentally making it harder to get smoking material by increasing taxes on the items would be persuasive toward quitting raising taxes is always a negative in my book. Also I agree 100 % with people in general need to be better educated with valuable knowledge but I also know that a strong moral foundation is essential for anyone to use a good education well.
Great plan, Larry. #4 really hit home with me. I don’t smoke, eat right, exercise, and basically live a good life style; yet my insurance goes up every year. I feel I’m being punished for all my obese, chain-smoking co-workers.
I Totally agree with you Larry. I believe you would have some people abuse the system and if they catch and can prove they did it. It should be a mandatory 10 year imprisonment & $100,000 fine. Keep up the good work & telling it like it is.
Larry- I first saw you in a show in which you were busting the chops of some princess that was spending $1000 per month on shoes or something ? You have to wonder if most of this stuff is not an “acceptable addiction” filling a void where there is a big hole inside– I was there, I did that- at one time.. but you grow up YOU ARE JUST TELLING US TO GROW UP and you know what happens when we do?? We get to take control of our lives – this is not a bad thing… right? I mean who cares about our well-being more than we do or more than God does?? Are we assuming THE GOVT will take care of us??? … if somebody thinks that govt really cares about your well-being , that person IS stupid – so be smart be a grown up and you will not feel so helpless… just like your plan spells out! LETS GET SOME OF OUR INTEGRITY BACK AND REWARD GOOD BEHAVIOR !!!!!!!!!!!!HERES A NOVEL IDEA–THINK BEFORE YOU ACT!! GET SOME WISDOM- READ PROVERBS FOR HEAVENS SAKE! READ SOMETHING!
Larry, I just bought your book “People are Idiots” and I agree with you 100%. For the most part, we are all idiots. I found your 5-Point package article and agree with it, too. I only have one comment. Not all obese people are stuffing themselves at McDonald’s. I recently found out I have been hypothyroid for probably close to 20 years. No doctor I’ve seen, there have several, managed to diagnose this and only treated all the other problems and symptoms (diabetes, hypertension, etc) without looking for a real cause. A simple test would have told them, but endocrinologists have little knowledge of the thyroid. (Endo-idiots.) Had they found this in a timely way, I might still have my thyroid instead of finally losing it to cancer. The good news, I have lost 54 pounds since surgery last June. I’m planning on losing 40 more. Anyone who knows me wondered how I stayed so heavy eating so little and being relatively active for my health state. I have an excellant doctor now and from my internet research, which has helped me get healthy, I know that with all it’s problems our health care system is excellent. Ask someone from most of Europe or Canada, who may die waiting for either a doctor or surgery after a diagnosis, about the kind of health fix we’re headed for. Because I’m 57, the law that is part of the real stimulus package might have deemed me too old for the lifetime cost of my thyroid surgery and medications. Instead of changing our system, we should help those who can’t get insurance and help them pay for it, too. The only other thing that should change is the drug company’s monopoly. I was offered an inferior, yet more expensive, drug because the drug companies push it on the doctors. Thank goodness for internet research and an understanding doctor, or I might not be up to writing all this. So when you’re talking about obesity, make allowances for those who are that way through no fault of their own. And as soon as I can find a job (I’m in school now) I’ll work on the debt problem. I do take responsibility for that.
Hey Larry: I truly respect the way you think. I love your books…and have read two in one night….without getting up even once from the sofa – – had to finish them that night.. You are spot on with what I would consider ‘difficult issues’… I feel I already know the answer – but would you ever consider running for political office? We need someone with strong convictions….and morals and values..with credibility to match.
Also, is your show still on A&E? (I can’t find it anymore) I so enjoyed watching it and the way you tried to teach the lessons your program offered. I learned so much from it — really a thousand thanks to you.
I know your ideas are probably not always popular with everyone….but you are way way cool in my book. Wish you were a family member.. but in lieu of that.. please keep sharing your knowledge with us. I for one really benefit greatly from it. Thanks …. from the heart.
Me again- just another thought.. 8 years ago I joined an organization called ‘Voluntary Simplicity’. We followed the principles in a book entitled “Your Money or Your Life’ written by Joe Dominguez I believe in the 60’s.
Speaking for myself, I wanted to live a more simple, more real ‘back to basics’ lifestyle. Mostly I was ridiculed for my more simple manner of dressing and my desire to stop spending as I had in the past. These changes however helped me define who I really am. I take care of my simple needs.. eat properly.. get lots of rest…and have wonderful conversations with dear friends in my free time. Otherwise I am a working, productive member of society. I’ve lost lots of my 401k investment money in this economy… and don’t like it much. . but with my simple needs…I find I’m not as scared as others perhaps may be. . .
Sadly, Voluntary Simplicity disbanded in my area for lack of interest…though I still live it..gratefully. Perhaps when your fans are not reading your books…they might enjoy reading ‘Your Money or Your Life’.. and choose Your Life..
Christine – thanks for your comments and for reading the books. As for running for office? No way! You have heard of skeletons in your closet? I could have a warehouse skeleton sale for the skeletons in mine! That’s how I have learned so much: doing so much dumb stuff! And I don’t have the patience to put up with the politics. I like to make immediate changes when I see they need to be made. I don’t tolerate laziness, dishonesty or theft of any sort. That would pretty much keep me out of office since there is so much of all three!
thanks though.
Larry
You my friend, are effing brilliant and a lifesaver.
I read your shut up. stop wh… book before I was bout to get married to someone who did not make me happy. Needless to say, that did not happen. I got out of debt and now I have savings!
I am doing sports – I swim every other day and I feel great.
Keep going, I hope you find the way to get in a position where you can steer the masses in the right direction.
Maybe a TV show? Small pearls of wisdom?
Maybe politics? – Politics can corrupt Angels and make them demons but it would be worth trying.
Best of luck Sir !