Blast - Will the bailout cost us each $2k?

As the government prepares an economic bailout that could cust as much as $700 billion, one group calculates that American taxpayers and families will be left with the tab — despite what both candidates are saying about lowering taxes.

WashingtonWatch.com says American taxpayers could be hit with $2,000 and families with $6,500 in extra costs from the bailout

“It is possible that the federal government will not expend all of those $700 billion, or even make some money back later,” said WashingtonWatch.com’s Jim Harper, “but I agree with those who call that possibility laughable.”

The blog cites the Resolution Trust Corporation, tasked with cleaning up the Savings and Loan mess years ago. The estimated cost of that crisis was $50 billion, but taxpayers ended up paying $124 billion before all was said and done.

“The bailout is plainly a sop to the financial services companies whose profits were privatized and whose losses will now be socialized,” said Harper. “Proponents say that it’s needed to prevent further financial catastrophe. Treasury Secretary Henry Paulson says that reforms will follow. It’s up to you whom you agree with and whom you believe.”

The draft legislation would raise the public debt limit to $11.3 trillion dollars. That’s $116,000 per family, or $37,000 per person, in governmental debt.

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In Business, Culture, Politics, The Magazine on September 22, 2008 at 01:17