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Posts Tagged ‘us government bailout cost to taxpayers

$1 Million/Day for 2,295 Years: Senate Bailout Plan…

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money-stacksThe US Senate is set to pass a so-called “bailout bill” that amounts to $838 billion. To give that some sort of perspective, you’d have to spend a million dollars a day for two thousand, two hundred and ninety-five years to spend an equivalent amount. Of course, that doesn’t include the interest which will accrue on that staggering debt.

How will this gigantic tab be paid? It’ll by paid by the US taxpayer: $6,2,36 per taxpayer, to be precise. That, of course, is on top of the $13,500 each taxpayer is already on the hook for via the original TARP money, the bailout of AIG, Lehman, et al. New total: $19,736 for each and every taxpayer, on average, plus interest.

There’s an additional downside: money invested in the government bonds to subsidize this massive spending is, of course, money which will not be otherwise invested in the economy for such things as actually spurring economic growth: for every dollar invested in a government bond, there’s one less dollar available for private companies looking to grow and expand.

The total amount borrowed for “bailout” spending to date? $2,651,797,108,408.

Bailout Cost to Average Taxpayer (Revisited)…

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Following on from our article on the real source of the “credit crisis”, we’ve had a ton of requests for the methodology behind our assertion that the average cost to taxpayers of the “bailout” is $5,354. That figure used 2003 IRS data; we’ve since gotten our hands on 2005 data (the IRS isn’t exactly known for their efficiency…), so here it is: a calculation of the impact of the possible range of costs associated with the “bailout”: Read the rest of this entry »