The Issue that Started the Economic Crisis in America

Not since the great depression has America saw this type of economic crisis. Jobless rates are predicted to increase into the double digits and while manufacturing is predicted to decrease in the next year. Millions of Americans are losing their home and their jobs all at the same time. Large companies are going under and banks cannot afford to loan money to either large or small businesses. The republicans want to blame the voting public for these issue but the truth is that the Bush Administration refused to address the core problem before it spun out of control.

The core issue is housing and to be more specific mortgages. The answer is to address that issue and provide the economy with the security that is needed to stabilize the economy. People who took the step to purchase their first home and achieve the American dream should not be blamed for this crisis. The value of homes should be written down to current market values by bankruptcy counts and interest rates for those mortgages should be set at a fix cost in order to allow people to be able to pay their mortgages on time. Once banks understand exactly what the values of those mortgages are then they can value the assets which they hold and those assets will have a future stable value. The banks will then be able to loan money to large and small businesses based on that stable future value of the assets they hold and that will protect jobs which will allow people to be able to spend once more in this country. You can weave the economy back together the same way the Bush Administration inaction unwoven it.

After this issue is dealt with then the government should go after CEOs and Companies both large and small which caused this issue to develop. No company should ever be allowed to grow so big that for economic reasons we as a country could not allow it to fail that is at the core of free enterprise in this country. CEO’s salaries should never be allowed to grow to the point that they have not relationship to the companies they run and the employees of those companies because that type of corporate structure invites failure. All of these factors will take time to deal with and that is why the Obama Administration needed to pass the economy recovery and reinvestment bill. Although the economy recovery and reinvestment bill is not perfect by anyone’s standards it is a step in the right direction.

So what is the responsible of the voting public in all of this? The voting public should understand that it is their responsible to save money for the future incase of economic problems. They should demand oversight from government when it comes to financial matters and demand fair wages for all Americans. They should control their own spending and invest in the economy so as to encourage growth which will benefit all. Home ownership should be seen as a good and beneficial thing because it increases a since of belonging to local communities and all Americans should be encouraged to achieve that dream. I would encourage the federal government to create a bill that would encourage and aide educational employees to own their own home within the community in which they work and live this would encourage them to work hard for their local schools. At present most educational employees cannot even afford to live in the community in which they work.