Posted on 09/29/2009 11:54:51 PM PDT by Lorianne
As part of several initiatives addressing concerns over how the volatile U.S. economic situation could impact current and future generations, Internet television media company PJTV (www.PJTV.com) today announced the winners of its Generational Theft Contest.
Trinity College Associate Professor of American Business and Economic Enterprise Edward Stringham, and his student Gavin Romm, a senior economics major from Rye Brook, NY, submitted the winning Generational Theft Contest entry to PJTV. Based on their default assumption calculations, the $10 trillion 2008-2009 bailout alone will cost the average 22-year-old a total of $148,035 or $280 per month until they are 79.
(Excerpt) Read more at reuters.com ...
And for what?
So congress could say they “did something” to save us all...
I hope these college students who voted for Obama read this article and begin to realize that his economic advisors went to the Wimpy School of Economics ...
“I’ll gladly pay you Tuesday for a hamburger today.” ...
Good to see PJTV getting some P.R. They’re a spin off of Pajamas Media, the group of conservative bloggers named for the snide comment about bloggers made by a CBS executive during the Rather phony documents event. Good group, well worth a visit.
I get 10 Trillion amortized over 79 years at 6% interest and divided by 300 million coming to 168/month/person. Still a lot of money.
They either used different assumptions or accounted for the effect on growth.
Can’t divide by 300 million, as much of that population is older, and thus will be gone by the end of 79 years.
It’s equivalent to assuming that the population stabilizes at 300,000,000. Whoever is around at in particular year pays. Some of them haven’t been born yet.
But a large portion of the population is not paying taxes - minors, generally, people below a certain income range, etc. The taxpaying population isn’t near 300 million individuals.
Correct, but we are measuring the average cost to the average individual. During peak earning years, he will pay more, as a child less.
Basically, just how much must we pay, per person, assuming the 10-trillion is amortized over the next 79 years. I think that estimate is low, because collecting five dollars in taxes in one year depresses economic output in that year by about one dollar. There is a compounding effect, all the capital not invested in this year will not be available to produce more to invest in the future.
If the U.S. had had a one-percent lower rate of economic growth throughout the 20th Century, today or standard of living would be on a par with Mexico.
Bottom line: 0bama is an ignoramus.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.