Tuesday, February 21, 2012

A Fair Way to Boost the US Economy

The US Congress seems to have issues with coming up with fair methods of repairing our ailing economy. They are more than happy to bail out those who actually caused the problem so that they can go back to rewarding themselves with massive bonuses. Why not pass a bill that would boost our economy by helping those who did not cause the problem and have been most hurt by it?

I think it's a no-brainier -- allow anyone not tied to the financial industry and whose income is below a certain amount and who has not missed any mortgage payments to refinance their homes to today's historically low rates while the federal government covers the closing costs of the refinancing. This would be far more inclusive than the weak HARP program, and thus would be more fair and do more to help our economy. It would increase tax revenue by allowing middle-class Americans to have more money in their pockets and, perhaps even more importantly, it would increase consumer confidence. The only people to lose would be the banks who would get lower interest on their loans, but hey, it was these banks who caused the problem in the first place and have been bailed out by us.

A second idea is to improve the manner in which we dole out foreign aid so that it helps other countries, as intended, but also helps America. Do some basic research of particular areas that need our help, such as infrastructure projects, and offer to fund these projects, but rather than giving the money to the country for the project, we would use US companies to produce the work. Yes, this would cause the projects to cost more than if produced locally, but being efficient is not the point here. The project gets completed, benefitting the foreign country, but the vast majority of our tax-payer dollars gets reinjected back into our own economy rather than vanishing overseas.


  1. When is being efficient ever the point of government?

  2. Our government is plagued by corrupt politicians who are very comfortable in being rich. The fact is, the rich for the most part, do not want the poor to have access to the same types of things as they do. Then there is nothing to make them feel better about themselves. These people LIKE feeling better than someone. "My kids go to a private school. My kids look better than yours. My husband is better. My wife is better. We're smarter...your kinda stupid...why does your family look so ugly?" and it goes on and on and on.

    People in power like inequality. They just don't want to come out and say it. They like driving Mercedes Benzes around and going on vacation while someone else wallows in misery working 80 hours a week for peanuts.

  3. I understand, Michael, and I never expect anyone in power to listen to any idea I have. But I still want to put such ideas out there anyway, because the people really do hold the power ultimately, at least once they can be prodded enough to exercise that power.

  4. Instead of giving the money to banks, give it to people so THEY can pay the banks. People get to pay off their loans (and have more money to spend) and the banks get money back to refinance themselves.

  5. That first one would help us a lot. We got turned down on a refinance attempt because hubby got laid off in 2008 and our debt had built up. I tried very hard to explain that the refinance would help ensure we didn't default, but they were adament. "doesn't matter that this would help pay the debt down or that you've never been late with any payment. You owe too much."

    What I really want to see, though, is closing loopholes so companies that go abroad still ahve to pay full taxes, incentives to companies (tax deductions per employee located IN the US, perhaps), and maybe training grants for industries that are having underemployment trouble (Michigan has a lot of skilled jobs that aren't filled because the population lacks those skills--hello--opportunity)

  6. All common sense stuff - so no chance of it happening. I think we all see how self-serving and unreliable politicians are, but no one can seem to do anything about it. Ted Cross 2016?

    Moody Writing
    The Funnily Enough

  7. Moody, what sensible person would want to be president? I think we're at a point where we should be picking smart, wise but unknown folks who don't truly wish to hold power.

  8. I sympathize with your thoughts, and I agree with helping those at home first.

    Canada has the same problem with ignoring the poor or struggling at home. We cut taxes to the business sector, while loading more onto the middle class. It stinks!!