PLAN D

(I am not an economist, but neither are 99% of those who comment about the economy, so here goes.)

We have been told the American economy, confronted with a 10% or so unemployment rate, is not in good shape. I am not sure exactly what standard is being used to determine our "not in good shape" rating. When I travel about, and see roads crowded with SUV's and Hummers and other expensive cars, and packed restaurants and hotels and theaters and ballparks and airports, it doesn't look as if we are not in good shape. I guess we wouldn't be saying that if the unemployment rate were at, say, 2% (although the economy would not be in good shape to those 2% unemployed, would it?). In some countries (France and Germany, for example), I understand a 10% unemployment rate is considered pretty good. But for the purpose of this post, let's agree we're economically hurting.

Stimulus giveaway programs that were intended to fix the problem, have not yet done so. More stimulus plans are on the table, though some pundits allegedly wiser than I am predict they will exacerbate rather than ameliorate the situation. Everyone is seeking a nirvana-type plan...and I have it!

I call it "PLAN D." Why Plan D? Why not? They are called stimulus plans, aren't they, and they haven't stimulated a darn thing...other than more misnamed stimulus plans.

The prime reason we are considered to be hurting is that some of the poor, the disadvantaged, the handicapped, among us cannot afford the basic necessities of life: food, clothing, shelter, health care, transportation, education. Let's call those items the Package.

Step One: The government should calculate a reasonable annual cost of the Package for the average American...say, $20,000... print currency and give that amount to each American on January 1 of each year. With our population of about 320 million, that would total 6.4 trillion dollars. Otherwise, the government stays out of the economy. Net result: immediate solution to the needs of the needy without increasing the size and cost of government.

Would that currency have any gold in Fort Knox to back it up? No, but who thinks about, cares about, or actually knows, the amount of gold backing up those crumpled dollar bills in their pockets. It will be like Monopoly money, exchangeable for goods and services...which is what the whole purpose of money is, no?

Would some astute economic wizard sitting in Kakamoon not want to sell his goods in America because there is no gold to back its currency? I don't know why he wouldn't since he could buy all sorts of stuff here and, in short order, probably around the world.

Would Plan D drive up the prices for items in the Package? Perhaps, a bit...and next year's Plan D payments will be appropriately adjusted.

Would the sudden inlux of trillions of dollars of currency drive up inflation? The influx and the possible effects of it will be reduced by the elimination of payments under current welfare and benefit programs. And think of the enormous savings in shutting down all those bureaucracies and agencies.

Would Plan D entice a few to work less because their necessities are already provided for? Perhaps. Might be a good thing...more leisure time, less stress, more enjoyment of life.

STEP TWO: There is no Step two.

There are also no income taxes to pay for Plan D since the plan doesn't cost the government anything. And no big costly government bureaucracy required to run the program.

I suspect and hope that somewhere in ther hearts, most economic pundits recognize that the free enterprise system works best. History has proven that to any honest thinker. Bygiving free rein to American entrepeneurs, Plan D gets as close to the free enterprise system as we are ever likely to get.