Here’s the opening paragraph from the Washington Post report:

MESA, Ariz., Feb. 18 — President Obama unveiled a foreclosure-prevention package Wednesday that would pour more than $75 billion into arresting one of the root causes of the nation’s economic spiral by helping as many as 9 million homeowners obtain more affordable mortgage terms.

And here are two paragraphs from the New York Times:

It could ultimately cost taxpayers as much as $275 billion – $75 billion in direct spending to keep people in their homes and the rest in additional financial backing for the government-controlled mortgage giants, Fannie Mae and Freddie Mac.

But analysts and administration officials alike cautioned that it would not come close to halting the tidal wave of foreclosures. Nor would it provide much help to millions of homeowners who are “under water,” or holding mortgages that are bigger that the market value of their houses.

So 9 million homeowners will get help with their mortgages. Many more than that will benefit indirectly, of course, but it’s still another example of the flaws, failures, and absurdities in conventional economic policies. And, as the Times noted, millions of homeowners will still be “under water” and not getting any help.

Where does the $75 billion to $275 billion actually go? To banks, and therefore to their officers and shareholders.

Suppose we had Citizen Dividends, and every adult American is getting $1,000 a month. That’s $2,000 for a couple, in addition to whatever they earn or get from other sources. Almost everyone would have the money to pay their mortgages without any added government assistance. No interfering in the mortgage markets. No subsidizing the banking or housing industries, or any other special interest, which includes the 9 million people who are supposed to benefit from the Obama’s plan.

Citizen Dividends is the most efficient, cost-effective, market-friendly, and therefore conservative approach to stopping home foreclosures. How do we  get self-professed “conservatives” to understand that? Many of them, unfortunately for them and the rest of us, seem to use “conservative” as a synonym for “anti-government,” so they refuse to consider the benefits of a BIG.

The challenge is to educate everyone, of course, because most “liberals” also ignore these ideas. Please help spread the word.

Steven Shafarman