Compromising The Consumer Crisis
The American economy is fueled by consumer demand. The economy suffers from a consumer crisis. This is overcome by lowering the consumers’ debt to income ratio. Instead of giving money to big banks multiple times since 2008, the government should have created the following program in which participation should be voluntary.
Balancing the Budget
The US federal government should give private citizen tax payers the opportunity to voluntarily obtain a stimulus credit that is equal to an individual’s and business’s tax returns averaged over the previous five years. The funds would be paid back to the federal government (i.e., all tax payers) by recouping the loan over the next 1-5 years of income tax due an individual or business who chose to participate. Thus the federal government would stimulate the economy and balance its budget for this program.
Improving Available Income
Participation would involve the federal government not giving money directly to individuals, but will be used to payoff or restructure debt by providing the money to an individual’s or business’s creditors. Participants designate that entire loans or portions of them be paid off, and/or the principles reduced, or terms renegotiated to lower their payments. Participating consumers will experience a higher income to debt ratio.
Kicking Up Consumption
The more money Americans have available the more we spend. Had this Jubilee been done in 2008 many businesses like Circuit City would not have gone out of business. Millions of Americans would not have been laid off but would have kept their paychecks and continued spending including paying income taxes, commensurate with their former higher income levels.
Why not join me in advocating Jubilee?