As the American people are watching the economy head for a record landslide, the question of the hour for many Americans has been what the heck is going on with the stimulus bill? For many of the political experts, it’s all boiling down to one thing, mindless bickering between the members of congress. Republican leaders want more tax cuts for large businesses while the Democrats are looking forward to spending as much money as possible on several programs that well are not going to create a whole lot of jobs. While congress is relentlessly arguing, the very people whom they represent are falling further into the cracks of despair.
As we are heading into another Great Depression, how should the government lay out the stimulus bill that we oh so desperately need to survive these tough times? Lowering the corporate tax on big businesses could work, however that method has been used for years, and as you can see, jobs are being slashed due to the lack of demand and inflation. This lack of demand mixed in with inflation has caused major corporations to move American jobs to places like India, China, and Mexico because it costs less for these companies to pay their workers.
Then there was the grand idea of the government bailout for the banks, in which would tackle the credit crunch. As you can tell, the credit crunch has not let up while banks gave their corporate executives large bonuses and took their top execs to an all expense paid trip to a top notch resort. This doesn’t help homeowners in the least nor anybody else who is trying to purchase a home. The bailout to the big three has led to the lowest sales turnout in years. Again this bail out has not saved any of the jobs of the auto industry worker. Instead the American auto industry has begun to crumble, and they are close to shutting their doors for good.
Why haven’t any of these methods worked in reducing the recession? First off, we were way too free about giving away credit. Most banks were giving away adjustable rate loans and mortgages for people with not so good credit and loans that have zero percent interest for the first year or two. After that period was up, the monthly payments with the combination of job loss became unaffordable for the home owner. Therefore, the foreclosure process begins and Americans are losing their homes. Another thing about the bailout packages is that our children and our grandchildren will be paying the government back with higher taxes.
Another problem is that we are not buying enough American made products. Consumers are buying products such as electronics and cars, among other consumables from foreign countries for lower prices than their US counterparts. The combination of buying less American and more foreign products has caused dramatic job losses during the past year. The job losses create less spending and more saving that evolves to more job losses. The American people cannot take another economic blow. If there is an economic blow, America’s future will become a bleak one.
Here are a few ideas on what the government and the wonderful people in our great country should do to help the economy:
First of all, the government should send every American citizen a coupon book with our income tax returns. Not for five or ten dollars off of a television, but in amounts of between 200 and 400 dollars up to 3000 and 4000 dollars off of American made products. This creates incentive for Americans to spend money that will lead to higher demand for products.
Second thing the government should do is to stop bailing out the major corporations. These financial institutions and major corporations are the ones who got themselves into the mess they are in, they should be the ones to get themselves out.
The third thing we need to do is invest in our children’s education, they are the future and without a good education, they will not lead our country into prosperity.
Last but not least, if a bailout plan happens, the money needs to go to us instead of the major corporations. It is we; the American citizens who are losing our homes, who cannot afford to feed our families, and spend the money that the government wants us to do in order to raise our economy.
This is what President Obama and our elected congress should do in order to lead us out of our current crisis. If our elected representatives fail us during these tough times, then the American dream will be lost.