Let's Help Our Veterans While Helping the Economy

by Ed Koch 

Regarding the Wall Street Journal editorial ". . . And Bridges to Everywhere" (Dec. 26): President-elect Barack Obama will soon present his stimulus package. Since Jan. 1, the U.S. government, according to The New York Times of Nov. 26, has allocated "$7.8 trillion in direct and indirect financial obligations" to the current economic crisis. Nothing has worked to date. Ultimately we will all be saddled with a vast bill and an inflation rate that may reach that suffered by the Weimar Republic.

The economic bailout was originally intended to encourage banks to once again lend to creditworthy applicants. Since there were inadequate conditions imposed on the bailout money given to the banks, they have not done so. Now, bailout money is being handed out to banks and industries simply to prevent bankruptcy, also without adequate conditions. We, the American public, have received very little (I would say nothing) for the largesse of our leaders.

I have two suggestions that will at least give us something more tangible for that ongoing generosity with taxpayers’ money.

Why don’t we authorize the secretary of the Treasury to buy up to 1.5 million automobiles at a price on average of $30,000 each, which comes to $45 billion. Also, provide the authorization to buy up to 300,000 houses in foreclosure that were part of the subprime mortgage fiasco, at an average cost of $300,000, in aggregate less than $500 billion. Then give a car and a house as a bonus to every veteran of our current wars in Iraq and Afghanistan. I will leave to Hank Paulson and his successor the job of working out the details of distribution, e.g., lottery, fairness, region, etc. The veteran should be required to live in the house, unable to sell for five years, and demonstrate an income that can support his/her maintaining the now mortgage-free home.

The total cost of this package is approximately $500 billion, depending on the number of veterans, while President-elect Obama’s projected stimulus package is a reputed $800 billion. Most important, our veterans get something tangible for our money, as opposed to the bailouts to date, which are sweetheart giveaways.

Edward I. Koch is is a former mayor of New York City

Copyright 2008 Dow Jones & Company, Inc. All Rights