Bailouts: The Funds the Citizens Don't Know About

The national deficit is the largest it has ever been. According to the U.S. National Debt Clock the deficit at the time this article is being written is $10,635,772,096,222.74. Yes, that is Trillion, not Billion, and not Million.

We have all seen the Wall Street bailout splashed all over the news. After receiving funds from the bailout, AIG was busted spending hundreds of thousands on a luxury retreat. Later, they were given even more money from the bailout fund.

The carmakers flew in to meet with Congress in big private, luxury jets. I wonder if they have ever heard of eBay. Sell those big tankers that guzzle up thousands of dollars in fuel alone and bail yourself out. The carmakers were eventually awarded some bailout money and just weeks later GM's financial counterpart GMAC would receive a bailout as well. Along with another few million for GM. But, heck, we are only in the trillions; we can afford it.

We all know the controversy over the rights and wrongs of these bailouts and loans. What about the grants, the loans, and the bailouts on the local level? The retailers and entities in Pennsylvania that California may have never heard of. The chain stores throughout one coast, which the other coast would never see the logo for.

Here in Schuylkill County, Pennsylvania we have seen our fair share of retailers and businesses sprout up and then disappear. Just some of the previous retailers we housed were Ames, Hills, Acme, A&P, and Kings. We watched Kmart file for bankruptcy numerous times, each time changing their name and continuing to do business. We have had empty spaces in our malls for years. Last year Steve & Barry's occupied one of those spaces, just before Christmas last year they announced they are closing their doors.

Recently Boscov's announced it was closing the store they hold here in Schuylkill County. I don't really care. I haven't shopped there in years. I can't afford it. Now the county is joining five other counties in an attempt to funnel federal funds to save Boscov's.

The entity claims to need $35 million, yes I said million, to stay afloat in the area. Going along with the carmaker bailout justifications, the officials are saying it is more important to save the 155 jobs that would disappear if Boscov's closes its doors.

Now, I am not that cold hearted, I do feel for those that may lose their jobs. But we need to be realistic here. Being more than conservative for the area, we will assume that the employees of the store located here in Schuylkill County make $10 an hour, and work 40 hours per week, all year long. That is an extreme exaggeration but you will get the point in a minute.

In one year's time, the total payout for the employees, before taxes and deductions, would be $3,224,000. Take that total and times it by five for the next five years wages for the employees and we get $16,120,000. That number is LESS THANK HALF of the total bailout funds that are being sought. We also need to keep in mind that most of the employees would not work 40 hours a week as most of them would be part time.

Even taking the figure and multiplying it by the number of counties seeking to bailout Wal-Mart would not meet the proposed $35 million in 2 years. It is just ridiculous.

It would be cheaper for the government to simply create positions for the people to continue with some kind of employment, with equal pay and equal hours, than to reward yet one more company for their wrongdoings, poor business management, and poor money management.

When will it end? Seriously. I lost my job last year already, took a part time job to help out, but no one bailed me out.

Boscov's has already filed for bankruptcy protection last year, and a report on television estimated the owner's assets at $85 million. What? Oh you poor bugger, you only have $85 million, here let me give you $35 million more to make sure you can stay afloat.

I understand times are hard. Just as my cable company, they know I am broke, too.

The point here is this. Only people in Pennsylvania will hear about this bailout proposal in an effort to save Boscov's. What is going on in your town?

Schuylkill County Pennsylvania has been said to be a 'poor county'. Anyone watch that 'Secret Millionaire' show? It featured this county, people from Shenandoah if I recall correctly.

I have stated in previous articles that to earn a decent wage around here, we would have to travel at least an hour, and that means travel out of the county just for work.

Where was the bailout for that little mom and pop gas station in town when the owner fell ill and had to choose between his health and operating expenses? Where was his bailout? Where is the bailout for the hundreds of thousands of U.S. citizens without healthcare who are suffering from deadly conditions and diseases such as cancer?

Where does it end? Who does it end with? Right here, right now, in this county of Pennsylvania, the bottom line is that the people who reside here cannot afford to shop at retailers such as Boscov's. A $20 shirt at Wal-Mart would be $35 or more at Boscov's.

Then, we get ridiculed for shopping at Wal-Mart, because we are not supporting our local businesses. Well what are we supposed to do? Wal-Mart is probably the only chain, non locally owned, store that I shop at and the bottom line is I can't afford the prices at the alternatives. And let me tell you, there aren't many alternatives.

While the jobs of the 155 people are important, Boscov's is not. We cannot afford to keep allowing the government to just throw money around that isn't there, and yes, it will be at our expense. Maybe not today, maybe not tomorrow, but it will be.

What are they going to do for the people? We have yet to know what President Elect Obama will do with his economic stimulus plan, at least not as far as the people go. I have heard talk of cutting income taxes in order to make the working person's paycheck bigger each week.

While that is a great plan, thank you, what is that going to do NOW? That extra $10, $20 if I am lucky, in my paycheck each week is not going to stimulate me to go shopping. Don't get me wrong, I won't turn it down. But even at $20 a week that is only $1040 for the entire year.

Okay it sounds better now that it is down on here and I am reading it, but I think to stimulate the economy we need that money now. $20 a week will help out with gas money, but it is not going to do anything else for most working people around here.

$1000 will, even $500 will. I could pay off two credits cards with $500 and still have money to spare. In turn, two banks receive their money, and my payments per month decrease.

If they want to give Boscov's $35 million they should disburse it in gift cards to the people, killing two birds with one stone so to speak. The people can buy clothing and other necessities with the gift cards, and the retailer is saved. Instead, they will just give it right to the retailers, the people who messed everything up for themselves in the first place.

The people didn't make this mess, it was the companies, the banks, the retailers, and the idiots that make more in a year than I will in my life and still don't have a clue. When these businesses started to fail, people started losing their jobs, having less money they defaulted on loans and other bills. It was not there fault.

If anyone deserves to be bailed out by the government, while they are throwing money around anyway, give it to the people. That $700 billion would have done more good to the economy if it was given to the working people first and they in turn would have paid their mortgages, car loans, credit cards, and other bills, saving the economy.

Go Mr. Government Go. You guys rock. No, seriously, you do.

Mr. Obama, good luck, you are going to need it to clean up this ridiculous mess of an economy. You should thank Mr. Bush for leaving the worst of the worst on the porch of the White House for you to pick up on your moving day.

UPDATE:

Prior to this article being published, news was given that one of the Pennsylvania counties that was debating on loaning funds to Boscov's has voted to go ahead and approve the proposal of nearly $6 million.

WGAL reported that Lebanon County has three to zero in favor of the plan. Commissioners in the county stated that 'Boscov's is too important to lose.'

Pottsville Republican and Evening Herald has also now reported that the vote on Schuylkill County's part of the action plan to save Boscov's will take place today, January 9. Today they say that the 'loans' are 'risk free' because Mr. Boscov will put up nearly $100 million in collateral.

This just furthers my misunderstanding of the situation as a whole. Boscov's is seeking $35 million over what was 6 counties in Pennsylvania, but is now 7 counties. If he has $100 million to back up the so called loan, why would he need it in the first place.

This is just further proof that the bailouts are out of control and getting even more ridiculous. With one county already submitting their vote, this bailout appears to be nearly a done deal. It is more than likely that the remaining county votes will follow the lead of Lebanon County.

WAKE UP PENNSYLVANIA!

sources:

http://www.republicanherald.com/articles/2009/01/06/news/local_news/pr_republican.20090106.a.pg1.pr06boscovs_s1.2208734_top3.txt

http://zfacts.com/p/461.html

http://www.wgal.com/news/18443021/detail.html

http://www.republicanherald.com/articles/2009/01/09/news/local_news/pr_republican.20090109.a.pg1.pr09boscovs_s1.2216322_top3.txt