Economic Recovery Sooner Than Later

2009-03-08

Auto and Economic Recovery Plan

As an observer of the economic recovery efforts currently underway I have not heard a single plan that seems to be working. Funding banks that are not loaning money is not working. The populace won’t borrow money because they worry about looming layoffs. So here is the “Frazier Plan”

The Plan

This plan does not prop up the auto makers waiting on the economy to turn around. What they need is sales! The proposed loans to auto makers do not stimulate movement in the economy. A coupon program will help the one buying a car, dealers, suppliers, shippers and lenders. The auto industry is large enough to jump start the economy. GM, Ford, Chrysler, Toyota and other companies have models that are fuel efficient

Each card carrying tax payer that is a US citizen could apply on line for a coupon valued at $8,000 to $12,000. The coupon would have an expiration date on it that assures the holder will move in a timely manner. The coupons should also specify a fuel efficient vehicle. The difference in the purchase price of the auto would be paid by the coupon holder.

Customers would visit their local show room to order the car they want. Upgrades can be made with the purchasers cash as long as the car meets the fuel efficient requirements.

Benefits of the Plan

This plan will greatly reduce oil imports, by accelerating the transition to fuel efficient vehicles.

The customer matching funds will get cash off the sidelines and into the system.

The tax payer funding the stimulus will be one of the principal beneficiaries.

The automakers would have a four year manufacturing back log insuring sustained employment and incentive to transition to producing more fuel efficient autos.

The Cost

Economics of the plan	Unit cost	Daily BBL	112,000,000	US Homes
			30,000,000	Minus non citizen HH
			82,000,000	Net Households
Cost of Coupons	$12,000		$ 984,000,000,000	Total Cost
New Money from buyers	$ 8,000		$ 656,000,000,000	Purchaser contribution
			$ 1,640,000,000,000	Total Stimulus Value
State Sales Tax Revenue	8%		$ 131,200,000,000
Oil Import Savings annually	$ 45.00	4,000,000	$ 65,700,000,000

The Frazier Plan Ed Frazier Author edfra@tx.rr.com www.eiradioshow.com

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