"If you just give people money, there is no telling where that money will ultimately go or who it will benefit.  Just look at the $700 billion they gave the banks, AIG, and the auto industry... what good has that done for our economy?"

But this is exactly my point Robert. The prior bailout didn't give the money back to the people. It gave it out to the very banks whose greed created the problem in the first place. The neighborhood banks didn't need a bailout and didn't get one. The large banks used it to buy out other banks and the auto companies are not creating any new jobs in the U.S that I know of.  If you give it to small businesses and individuals instead, they invest it in their own business or spend it for things they want and need. Either way the whole economy gets a boost.

Third, many people would be likely to save the money if it were given to them, or it would go to catch up their delinquent mortgage or credit card debt.  If they don't have a secure future, they are going to be frugal.

Yes, many would save it or pay off debt which would also benefit the economy by giving the banks an incentive to put the money back out on the market. Some would spend it all. Some would save it all. But I suspect most would probably spend some, invest some, and pay off debt with some of it. In each case, someone is on the receiving end and they in turn would spend some, invest some and pay off debt with some and on and on and on.

I would much rather see the economy rebound and have people buying homes again.

So would I, but I'm not sure throwing money at the people whose greed created the problem in the first place is going to cause an economic rebound. Like you said, it sure didn't work with the banks and auto companies.

Just look at the $700 billion they gave the banks, AIG, and the auto industry... what good has that done for our economy?

Your right, the last bailout definately targeted the wrong people. Now imagine if instead of throwing money at national banks and other bloated inefficient industries that ship our jobs overseas, 200 million taxpayers and small business owners had awakened in December to find they were $3500 richer than they were the day before?