The FHA will end up with sub prime and junk mortgages where the borrowers have “no skin in the game,” and no upside incentive. Also, these troubled borrowers will have less incentive to repay. In the end, when those dead-end mortgages are abandoned, we the taxpayers will pay to bail out the FHA. In effect, Congress, the U.S. Treasury and the FHA have elected to take out a sub prime mortgage on the economy’s future – with al-ready strapped taxpayers footing the
The federal government attempted to fix the economic problems through costly economic stimulus packages, which only resulted in further national debt. So one would have to ask if the fiscal policy the government is currently using is working. Many economist say America is suffering from debt deflation. Americans are trying to pay down debt by spending less, but this is causing their debt problems to worsen. Economists believe that government spending should rise temporarily so the drop in private spending can repair itself.
These ideals are also known as supply side economics or “Reaganomics.” This is a “policy espoused by former U.S. president Ronald Reagan. He popularized the controversial idea that greater tax cuts for investors and entrepreneurs provide incentives to save and invest and produce economic benefits that trickle down into the overall economy.” (American Pie: Wealth and Income Inequality in America, 2012). With this way of thinking, the rich keep getting richer and the poor are struggling to survive. The OWS movement strives to make sure the 99%, which would be the middle to lower class Americans, also have a say in the government and a fair distribution of the finances in America. Many people believe that the trickle-down theory is just an excuse to justify favoring the rich financially and the benefits keep going to those richer people.
So by raising the dept ceiling the government would be able to avoid a shutdown that would greatly impact Americans. Americans are already having a hard enough time as it is with the way the job market is already proven by the high number of people on unemployment. “All that sounds like an Armageddon scenario. But those assessments are widely held by mainstream economists who don't have a partisan stake in the debt talks. They're not saying the world would actually end, but they are warning Washington that jobs and livelihoods – not just political wins and losses – are at stake.” With the cut of social security, unemployment, higher taxes and other consequences that would follow the Americans would be in
How about making great increases on taxes for the rich? Wouldn’t that reduce the income from their industries and businesses as well as making it hard for them to maintain all their employees? It’s interesting how the big earners are portrayed as being extravagant, spending on luxurious goods while the middle class who have foreclosures and bankruptcy are only portrayed as caring about their children to go to good schools. Oh! How
Consumerism is defined as the concept that an ever-expanding consumption of goods is advantageous to the economy, according to Webster’s Dictionary. This term first began its circulation in a post WWII America, when your two duties as an American citizen were to hate communists and spend money frivolously. After WWII many things changed in the home front, a lot of which had to do with the fact that the American economy suffered after WWI and we had learned from our mistakes the first time around. One major change is that the world of credit was introduced after WWII. Before that, in order to buy a house you needed at least half of the homes worth for down payment in order to be approved for a mortgage loan.
A huge controversy is taking place today over the president’s proposed and now partially in affect Economic Recovery and Middle-Class Relief Act, also known as the “stimulus bill.” Most Americans assume that this stimulus plan will facilitate a supply of various job opportunities, housing for the homeless, and insure healthcare coverage. However, it is the opinion of some, including my own, that the “stimulus” plan has not been well thought out enough to get us through this down fall in the economy. Jobs The President has said, “I think my initial measure of success is creating or saving 4 million jobs” (Obama's Success Story or Saving Jobs Made Easy). How exactly do you measure a job saved? There is no way to authenticate saved jobs, neither
In President Obama’s case he just makes money, re-opens failing businesses and spends more than we create or can pay back to china. I think a Economist should be our president and only economist, The presidents use facts from them and depend on them to make sure things are right. I don’t believe I can recall how many times both presidents said they got “analysis economists looked at”. I really don’t understand why they can’t go from deficit to surplus without causing chaos and make this economy a better place for
The biggest problem in today’s American society is income inequality. We live in a society where the rich are getting richer and poor are getting poorer. The people in the upper-class are making more money, while the middle-wage class is shrinking; becoming almost inexistent and lower-wage class group is just getting bigger over the years. Therefore, Americans must understand the importance of the upcoming election, and to vote for the Right Candidate to fix the income inequality problem. In My opinion, President Obama offers the best solutions for income inequality by bringing new ideas in his 2012 campaign election.
How America Would Be Different: Without Important People and Times in History Ashley Kimpling 4/28/2014 The first topic I have chosen to focus on is “Reaganomics”; this was the preposition that Reagan made when he ran for president. It was an idea of making tax cuts for the wealthy of 30%. Although only a 25% tax cut was approved Reagan still thought that this would help the economy. His reasoning for this was that the wealthy would save that money and be able to spend more money, by spending more he thought it would create more jobs. Unfortunately, while Reagan was in office the national debt tripled; it went from one trillion to three trillion dollars (Independence Hall Association, 2008-2014).