Monday, October 17, 2011
"Debt Relief for Banks, Not Homeowners": Bail Out the people who deserve it
Wow I actually agree with The Young Turks on something or at least Cenk Uruguyar, I'm sure I misspelled that. But hopefully you know who I"m talking about. Turkish is not my first language which should be no surprise to anyone and I doubt german is his first language. So good luck to him in spelling my first and last name as well. I agree with Cenk in this sense and hopefully I didn't misspell that, its only four letter for crying out loud. I agree with him in this sense, that the wrong people were bailed out in 2008. The people who blew most of their wealth away, meaning their Corporate Wealth. I'm sure the people running these company's were doing great personally but their company's were bankrupt thanks to them. And the people who did business with them, were left bankrupt or drowning in debt. As a result of the "Great Recession" of 2008 and the Housing Crisis. They didn't get any bail out and had they did or get bailed out soon, like having the debt forgiven. Like what's done with Developing Countries, which could be financed by the company's who received TARP. And a lot of them are up in running again. And then they could start spending money again, increasing their Consumer Spending. Which could help in jump starting our Economic Growth which could lead to Job Growth.
One of the reasons why our Job Growth is so sluggish right now, even though we did have a decent Jobs Report in September. Is because our Economic Growth is so sluggish, because so many people in the Middle Class. Are currently drowning in debt right now, which why I'm in favor of letting people. Who to no fault of their own are currently drowning in debt and not spending what they normally would or need to. Because a lot of whatever new revenue they receive, goes to paying down their debt or mortgage. I'm in favor of letting these people deduct their debt from their taxes, which would result in a Tax Cut in the hundreds of billions of dollars. In an addition to President Obama's American Jobs Act. Where the President currently proposes a 200B$ Tax Cut for the Middle Class, including an extension of the Payroll Tax Holiday. Including extending that to employers as well as workers and I would be in favor of an additional Tax Cut. For the Middle Class as well. What I would call a Consumer Tax Credit, where people would get a credit but they would have to spend it. By a certain amount of time. Not pocket the money or put the money in the bank or pay down Credit Cards.
The fact is if your responsible with your money and you have a large debt to pay off. Your going to spend what it takes to get that debt paid off. Including your spending in other areas, meaning Consumer Spending will drop as a result. Because there would be less Consumer Spending would be taking place. So we need to get these debts paid off before we can see a jump in Consumer Spending. Which would lead to Economic and Job Growth.
Click on the link of the blog to see a video from The Young Turks on the bailouts