It is just weeks after Barack Obama won the 2012 election to his second term as President. White House Press Secretary Robert Gibbs provided some details today about President Obama's campaign promise to "make 95% of all citizens a millionaire".
Participants must earn less than $50,000, with a net worth less than $50,000. They must be a legal resident for 3 years at the time of the grant. Illegal status will incur a $10,000 penalty in exchange for immediate citizenship. Gibbs said: "It just seems fair not to spoil such a happy event because of a technicality".
The White House will establish the Department of Citizen Grants to administer the program. Applicants can sign up at WhiteHouse.gov or write to an address to be announced. DCG will be fully established "by next year, or a bit later". Until then, one grant per month will be "completed by hand". Grant ceremonies may be televised.
The DCG will issue at least 1,000 grants each month, "or even more" when fully operational.
Gibbs deflected criticism that this plan was too expensive and was proposed merely to buy votes. "We are all tired of hearing 'NO' from Republicans. They should propose their own plan if they object to ours."
Republicans complain that this program will cost at least $12 billion per year and will take approximately 11,000 years to award grants to just the 130 million people who are taxpayers.
Gibbs: "We disagree with our opponent's figures. Our economic advisors fully approve of this plan. These negative projections do not take into account future advances in money creation and grant making, which will result in net savings to the government overall and a revenue neutral program. The economy will receive $18 billion per year from this money injection, a 1.5 multiplier. The 60% tax on incomes over $100,000 will raise more than $6.5 billion per year for government programs to help the poor."
A reporter from Fox News asked Gibbs to "just look at the numbers". Gibbs: "I am not an economist, and I am not authorized to scribble things on a blackboard, even if we had a blackboard. We live in the richest country in the world, and $12 billion per year is quite affordable within the $20 trillion 2013 federal budget."
Let's Counterfeit Our Way to Wealth
When an idea leads directly to a crazy result, what should we think about that idea? Maybe laugh at it until Obama explains in detail how it works.
If you believe Obama, Keynes, and their proclaimed wealth multiplier of 1.5 on government spending, then it would be valuable to counterfeit as much money as possible, of course under government regulation. You don't have to borrow counterfeit money, or pay it back. It is ideal for Keynesian government projects.