Chasing the Big Guys

The other day I was speaking with my buddy from college who's name is Steve and we got on the subject of the weak economy and the various bailout scenarios. This lead back to a discussion of my unclaimed property hobby. I explained my concept that I believe the federal government should lead the effort to first liquidate the unclaimed property assets back into the hands of the real property owners and use this as a first step to stimulating the economy. I told him that the fed should also provide some type of compensating incentive to the states to get them to want to distribute the property. My idea was that the federal government should reimburse the states either a percentage or a dollar for dollar reimbursement for every dollar distributed. To me this is a no brainer for the states. If you take a simple example like a $300 distribution, if the state retains possession they get the interest which at a low interest rate like 1/2% would amount to $1.50 plus the use of the funds. Under my scenario, the state would receive the funds without the liability they would continue to receive the interest and if the property owner just spent half of the distribution they would receive an additional $9.00 (based on 6% sales tax) which means the impact would be $300+$1.50+$9.00=310.50 for the effort to distribute $300. I am not addressing any impact regarding income taxes or any of the local economic multipliers.

Steve was very intrigued and seemed a bit excited and I felt a little rejuvenated by his enthusiasm so I began to author emails to some high profile senators who I felt would have an interest locally as well as nationally to help provide a creative solution to the economic situation we are in. The list was carefully selected based on my perception of the senators dedication to public service to their states as well as the American people. I also took into account their national profile. The list of senators included John McCain (R-AZ), Hillary Clinton (D-NY), Orin Hatch (R-UT), Joe Leiberman (IND-CT), Christopher Dodd (D-CT), Arlene Specter (R-PA) and Joe Biden (D-DE). I am aware that a number of the senators will be part of the new administration but I felt it wouldn't hurt to get this subject in front of them before they move into their new positions. My hope is that my contact will get in the hands of one of these senators and maybe spark some type of serious discussion.

I really feel this is an untapped yet cost effect funding source that the federal government should take advantage of. If this makes sense to you, please write to your local senators and ask them to consider this alternative. The more people write the more they have to listen.

Thanks and have a great Thanksgiving!!