Math Test
I have written repeatedly about the usefulness of a little simple math in understanding public policy. Now it is time for the test to see what you've learned. Please solve the following problems and, if possible, explain your answer.
1. How much taxpayer money would have gone to the AIG executives if Congress had given ZERO taxpayer money to AIG?
2. The AIG executives collectively received $165 million (of the $500 million they were eligible to receive) from the $170 billion that Congress gave to AIG (with the express stipulation that the bonuses could be paid). What percentage of the bailout went to bonuses? Is the outrage over the bonuses in proportion to the outrage over the bailout itself?
3. Foreign banks received $58 billion of the $101 billion taxpayer dollars Congress gave to AIG. What percentage of US taxpayer dollars were spent outside the US, rather than in the US economy? What percentage of the AIG executive bonuses will likely be spent in the US economy, and which percentage is larger?
4. Apparently there are 73 executives (out of some 400 eligible), who received these bonuses. What was the average bonus?
5. How long could the average AIG executive live in seaside luxury in Belize rather than pay the 90% tax (plus 10% state) on that bonus? Hint: Annual cost of deluxe living in Belize is somewhere around $50,000. Extra credit: Which would you do, especially considering murderous threats against you and your family?
6. Who received more money from AIG, the AIG executives or members of Congress who are now heaping hypocritical outrage on the AIG execs?
7. If Congress has already voted to expand the money supply-- by borrowing (and creating new money to cover it) for all of these bailouts-- by 267%, what will the rate of inflation be in 2010? What will be the effect on mortgage interest rates?
8. There are 535 members of Congress. Using the answers above, estimate the collective IQ of Congress.
Crossposted at Freedom Dogs, answer there.
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