Congress Fails to pass $700 Billion Bailout

Please note, that I am not an accountant or economic expert. I am just offering an outsiders view of what could happen if we consider all alternatives.

Shock vote in Congress ripples across White House race

As I am sure you’ve heard by now, Congress (the opposite of PROgress) has once again failed to lead anywhere productive.

That said, I want to offer the members of Congress an alternative to bailing out fat cats who were too stupid to run their companies without failing. (Harsh? Sure. Don’t like it? Tough.)

WonderGoon’s Three Point Plan to Reverse the Economy and Create Thousands of Jobs for America

  1. Legalize Gambling.
  2. Legalize Prostitution.
  3. Legalize Marijuana.

Taking these points one at a time, let’s start with gambling.

Legalize Gambling: According to Casinos: The Effects of Casinos – Direct Government Revenue, gambling generated $4.32 billion dollars in tax revenues in 2003, with Nevada (the most well known amongst the states that have legalized gambling) providing $776.5 million alone.

Assuming all 50 states and Puerto Rico legalized gambling, the tax revenues generated would be $39,601,500,000 billion dollars in one year. With this amount of money, America could not only absorb the loss of these failed financial institutions, but begin to pay back the enormous national debt, which is so astronomical, I can’t type that high.

The job creation aspect of this proposal would be an enormous benefit to the American economy. On average, larger casinos employ around 600 people. This includes dealers, waitresses, money handlers of all types, counters in the cages, and a large security force to keep the peace.

Note: I am not an accountant, so I am basing these numbers on simple math.

Legalize Prostitution Even more so than gambling, I think this measure would offend the Religious Right even more. But, so what? Were trying to save the country, here. Get on board, already.

According to “Six Thousand Trucker’s Can’t be Wrong” by Daniel Joseph Tutty, “the estimated Federal revenue from legalized Bordello prostitution would be $19.2 billion dollars a year.” (Tutty 53). Tutty argues that this is a conservative estimate.

As with legalized gambling, Bordello’s should be regulated stringently with all workers required to pass weekly STD screenings in order to continue to work. Condom use would be required and anyone breaking this rule would be fined a minimum of $250,000 dollars and subject to action in civil court (and perhaps in criminal court).

Prostitution creates even more jobs and may have a side effect of lowering the number of rapes which occur. Unfortunately, statistics to prove or disprove this theory were unavailable as of this writing.

Legalize Marijuana: Perhaps the most feared of all three proposed procedures, the legalization of marijuana would usher in a paradigm shift in the way we think of this, often controversial, drug.

Why legalize marijuana? In Amsterdam, Denmark, the patrons of various “coffee” style restaurants have the option of ordering a joint along with their latte. This sort of open trade of marijuana leads to higher tax revenues for Denmark. (When was the last time you heard about Denmark having a financial meltdown like we are having? I think never.)

The Danes are generally happier than Americans, so this would only heighten our own level of happiness. What’s wrong with that?

The Addiction Factor and the Gateway to Immorality

This doesn’t really exist. When you take into account the level of control we have with chemistry and selective gene splicing of plants, we can effectively reduce the strength of marijuana (and the stigma) without reducing the appeal of the option.

There is a practical matter to consider here, also. People are bringing the plant into the country (or growing it locally) anyway, so why not tax it and help pay for social programs? Imagine if we charged $15 dollars a for a pack of 20 marijuana cigarettes, and assuming that only one quarter of the population bought them on the first day they were legal, it would generate $1,125,000,000 in sales. Assuming a Federal Marijuana Tax on every purchase of, say, 7%, and you’ve just generated $78,750,000 dollars in tax revenue in one day! After one year, tax from marijuana sales would total $28,743,750,000.

Selling marijuana would still be illegal if you are selling it on a street corner. This wouldn’t change. The only ones legally allowed to sell it would be licensed merchants who pay a nominal fee (the same fee they pay to sell alcohol; i.e. a liquor license.)

In Conclusion
These measures are not perfect and I’m sure I will get a lot of feedback from people who are outraged that I would even attempt to put this forth, but consider this: Prostitution and the drug trade are the only true free markets left in this country. Everything else is taxed into the ground. All I am saying here is these industries should now pay their fair share of tax revenues so I don’t have to.

This is a fine example of Wall Street being bailed out by Excess Avenue and not Main Street. Taken in that light, I am sure you will agree this is the best option for America’s financial future.

All told, all three industries would generate $87,545,250,000 per year in tax revenues. In four years, when the next election comes up, $350,181,000,000 dollars would have been generated in taxes. in 12 years, the national debt (currently around 1 trillion dollars) would be paid off with over 1.6 trillion left over. These numbers are assuming sales of all three industries remain static (which they won’t).

About WonderGoon

WonderGoon is seeking enlightenment and questions everything.
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5 Responses to Congress Fails to pass $700 Billion Bailout

  1. Pingback: Stocks and Bonds » Blog Archive » Congress Fails To Pass $700 Billion Bailout

  2. Kasey says:

    All very interesting options, Mr Goon. Interesting indeed. I’m not trying to be flippant, either, though I know that’s how some might read my words.

    What strikes me above all in this mess is that those people in Washington are there at the discretion of the People. Yet when they listen to the very people who put them there, who don’t want them to vote in favour of this bailout, they’re criticised for worrying about their jobs. And THAT is both a Republican AND a Democratic criticism.


  3. WonderGoon says:

    Agreed. I, personally, don’t favor the bailout because it would provide Treasury Secretary Pualson with $700 Billion in tax payer money with virtually no oversight, would reward the CEO’s of these failed businesses with fat severance packages, and save otherwise failing companies who would be better off not being saved.

    There are other banks out there that can (and will) step up to fill the void left by these failed companies.

    All the Republicans and Democrats should worry about it making sure their employers, the people, are taken care of.

    I guess it is one of the fundamental differences between Europe and America. The governments in Europe have learned, the hard way in some cases, to listen to their people. The American government hasn’t learned that yet. Do you get the same impression?



  4. WonderGoon says:

    I did, thanks. Some very good suggestions in there. No one is happy with this bailout plan, now its called a rescue plan, (I guess “bailout” was too strong for some folks).

    If it quacks like a duck and walks like a duck. . . .

    Thanks for the link.


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