Cancel or Forgive it doesn’t matter the verbiage it can’t happen. These loans were underwritten by banks with certain guarantees by the Federal Government. The government would need to make the banks whole. Our Federal Budget is not balanced and operates at a deficit. This means any form of stimulus driven plan is going to come from more borrowing or significant reduction in government expenses. If the Federal Government were to “bailout” student loan holders the down the road implications are higher taxes, more taxes, or a significant reduction in government expenses. When one company closes the business doesn’t go away it goes to another place. In a capitalist economy it’s the law of supply and demand. We are much better off letting a struggling company fail so a just getting by company can thrive. One way to stimulate the economy is to bring our troops home and invoice foreign countries for services rendered. We have the means to capture oil output reserves in IRAQ to fill our strategic reserves. The federal government quits paying private industry to fill these reserves until we have accounted for every dollar spent in the liberation of a foreign country. The oil companies will take a hit but that’s why the posted record earnings to prepare for tough times. Non-Revenue producing government agencies rely on funding from the people via taxes. There are quite a few redundant agencies and a lot of mismanagement which could be fine tuned. A restructuring of the federal tax code would lead to significant reduction in staff for the Internal Revenue Service for one example. There doesn’t need to be a plethora of exemptions which requires a 1000+ pages to detail. If you make less than 10K you pay 0, 15k -20K 10%, 20K -35K 15%, etc. No exemptions for earned income.
There should be programs put in place to allow people to freeze loans (all loans) in place until these people can stand on their feet. Everyone took out the loan knowing the repercussions but no one forecasted the state of the economy which led to them not being able to fulfill their obligations. A bank will be able to deduct the loss of income during this time frame against yearly taxes. The duration of the loan extends the amount of the missed time.
There should be immediate laws to prevent predatory lending institutions from instuting unfair penalties, practices, and rates. There should be laws enacted which convert immediately all these current loans obligations to a fair rate loan which is fixed unless the borrower is an accredited investor who fully understands the terms of the loan.
Private Healthy Companies need to make money to thrive and be able to hire and pay fair compensation. Our government has made it very hard for private industry to thrive in our country with high tax rates, hidden taxes, and extensive regulatory compliance. If we simplify the regulatory compliance we make it easier on the company to comply and cut down the high cost of red tape. Our government needs to operate competitively with what the global market the keep industries here and attract others.
You want to do your share, buy American vote those who back American. I remember the rally cry in the 80s to buy American; it needs to be ingrained in what we do. You want to cut down the dependence on foreign oil and tired of high gas prices, search out alternatives and use them. Yes it sucks and not as user friendly as our current gasoline fueled cars but think about supply and demand. It will get better. Be the change you want to see.
The economy is hurting now but the answer isn’t a hand out it’s a hand up.
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