{"id":2994,"date":"2008-09-26T19:26:31","date_gmt":"2008-09-26T23:26:31","guid":{"rendered":"https:\/\/www.orthodoxytoday.org\/blog\/?p=2994"},"modified":"2008-09-27T00:54:55","modified_gmt":"2008-09-27T04:54:55","slug":"bailout-numbers-in-perspective","status":"publish","type":"post","link":"https:\/\/www.orthodoxytoday.org\/blog\/2008\/09\/bailout-numbers-in-perspective\/","title":{"rendered":"Bailout Numbers in Perspective"},"content":{"rendered":"<p><a href=\"http:\/\/www.sbecouncil.org\/news\/display.cfm?ID=2876\">Small Business &#038; Entrepreneurship Council<\/a> | Raymond J. Keating | September 26, 2008<\/p>\n<p>When it comes to tallying up the federal government&#8217;s recent bailout announcements, the numbers are so staggering that they might seem unreal to many people.<\/p>\n<p>For Bear Stearns: $29 billion.<br \/>\nFor Fannie Mae and Freddie Mac: $200 billion.<br \/>\nFor AIG: $85 billion.<\/p>\n<p>And now, of course, Washington debates Treasury Secretary Hank Paulson&#8217;s $700 billion to bailout financial firms that made bad debt decisions. <\/p>\n<p>That&#8217;s $1.014 trillion in taxpayer money placed at risk. (And there&#8217;s the $25 billion loan package-bailout moving through the Congress for automakers.) Unfortunately, since there is no substantive analysis to back up the $700 billion the Treasury wants, the bill may go even higher.<\/p>\n<p>But let&#8217;s take $1 trillion as the number for now, and put it in perspective. For example:<br \/>\n<!--more--><\/p>\n<p>\u2022 That $1 trillion equals 7 percent of the annual U.S. GDP.<\/p>\n<p>\u2022 That $1 trillion comes out to nearly $3,300 for each man, woman and child in the U.S.<\/p>\n<p>\u2022 That $1 trillion roughly equals the nonfarm proprietors&#8217; portion of total personal income.<\/p>\n<p>\u2022 That $1 trillion equates to more than 70 percent of after-tax corporate profits.<\/p>\n<p>\u2022 That $1 trillion equates to about 70 percent of private nonresidential fixed investment.<\/p>\n<p>\u2022 That $1 trillion is more than three times the expected level of corporate income tax revenues for fiscal year 2008.<\/p>\n<p>\u2022 That $1 trillion comes up just short of the $1.17 trillion expected to be taken in through the personal income tax in FY2008.<\/p>\n<p>\u2022 That $1 trillion is about $100 billion more than the expected FY2008 revenues for Social Security.<\/p>\n<p>\u2022 That $1 trillion is 65 percent higher than the federal government will spend in FY2008 on national defense.<\/p>\n<p>Hope that helps to put this entire government bailout scenario in perspective.<\/p>\n<p>Raymond J. Keating, Chief Economist<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Small Business &#038; Entrepreneurship Council | Raymond J. Keating | September 26, 2008 When it comes to tallying up the federal government&#8217;s recent bailout announcements, the numbers are so staggering that they might seem unreal to many people. For Bear Stearns: $29 billion. For Fannie Mae and Freddie Mac: $200 billion. For AIG: $85 billion. &#8230; <a title=\"Bailout Numbers in Perspective\" class=\"read-more\" href=\"https:\/\/www.orthodoxytoday.org\/blog\/2008\/09\/bailout-numbers-in-perspective\/\" aria-label=\"Read more about Bailout Numbers in Perspective\">Read more<\/a><\/p>\n","protected":false},"author":1319,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"generate_page_header":"","footnotes":""},"categories":[87,18],"tags":[],"class_list":["post-2994","post","type-post","status-publish","format-standard","hentry","category-economics","category-politics"],"_links":{"self":[{"href":"https:\/\/www.orthodoxytoday.org\/blog\/wp-json\/wp\/v2\/posts\/2994","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.orthodoxytoday.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.orthodoxytoday.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.orthodoxytoday.org\/blog\/wp-json\/wp\/v2\/users\/1319"}],"replies":[{"embeddable":true,"href":"https:\/\/www.orthodoxytoday.org\/blog\/wp-json\/wp\/v2\/comments?post=2994"}],"version-history":[{"count":0,"href":"https:\/\/www.orthodoxytoday.org\/blog\/wp-json\/wp\/v2\/posts\/2994\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.orthodoxytoday.org\/blog\/wp-json\/wp\/v2\/media?parent=2994"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.orthodoxytoday.org\/blog\/wp-json\/wp\/v2\/categories?post=2994"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.orthodoxytoday.org\/blog\/wp-json\/wp\/v2\/tags?post=2994"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}