Friday, November 18, 2011
Bail Out Student Loan Borrowers?: Forgiving Private Debt to Expand Economic Growth
If you look at why the American Economy lacks so much Economic and Job Growth right now, a lot of that gets to lack of Consumer Spending. And if you look at why we have such a lack of Consumer Spending right now, that gets to mountain of Private Debt thats held by the public. The Federal Government Debt approaching 15T$ right now isn't helping but the Private Debt is what's holding back Consumer Spending right now. So to jump start Economic Growth which would lead to Job Growth, we need to pay down our Private Debt. Which is something that President Obama understands which is why he made the proposal he did. Which is allowing College Students to put all of the College Debt from all of their Student Loans and everything. Into to one loan to the Federal Government that would buy up even more debt I'm guessing to finance this. I'm not for this proposal but I understand why the President is doing this. What I would like to see is a Tax Credit or Tax Deduction to everyone in the country who's currently drowning in debt right. To no fault of their own but because of the "Great Recession", currently has more debt then they can afford to pay back. And as a result aren't spending enough money to generate the Economic Growth that we need. To generate the Job Growth that we need to bring down our 9% Unemployment Rate. As well as trying to make Higher Education more affordable in America. So we can have more well educated and intelligent High School students going to college and Vocational School.
As far as the current people who are drowning in Consumer Debt and the people who are drowning in College Debt. We need some type of Tax Credit or Tax Deduction, for people who again for no fault of their own. Are drowning in debt that they can't afford to pay back and allow them to pay enough of their debt back. With this deduction or credit to get their debt down to more of a manageable level. So they have enough money to spend and start spending money again. And extending the Payroll Tax Cut for workers and extending it to employers as well. So again people have the money that they need to spend to get our Consumer Spending going again. Which would lead to both Economic and Job Growth. As well as an additional what I call Consumer Tax Credit or CTC for people who can't afford to spend money right now. That they would have to spend purchasing products not paying down debt and would have a window of time to spend that credit. And we need to do something to make Higher Education more affordable in America. Set up a new College Loan Program not run by government. That would be Semi Private Non Profit Independent Self Financed that workers and employers would pay into. To send their kids to college and Vocational School. Expanding Federal Colleges to go with the Military Academy's.
We are not going to get Economic and Job Growth going again until we address Private Debt including the Housing Market. And I believe this is something that President Obama understands and why he made the proposal he did. I disagree with his plan but at least he's thinking about it and addressing it. Not waiting until after the 2012 Elections to address it but trying to help people who need help. For the sake of the economy and to generate Economic Growth. To create the Job Growth that we need to bring down our 9% Unemployment Rate that we've been stuck at for more then a year now.