What a great idea. Instead of bailing out failing businesses, give people spending coupons that companies can redeem for cash.
One of my students–she is from Taiwan–told me about this. Sure enough, a simple search turned-up the story. The coupons are worth just over 100 US dollars, redeemable at restaurants, grocery stores, and retail shops, but must be spent this year.
I wondered about Obama’s 825 billion bailout plan. How many coupons would that pay for? Figure there are 200 million Americans 18 or over, you could give each one a coupon worth just over4 thousand dollars. The coupons expire after a few months. People will spend money, retail sales go up, profits rise, resource demand will rise.
Maybe the Taiwanese are working with a better model. But–I did also read they are bailing out their memory chip industry.