Solving the Foreclosure Crisis

1138 Words5 Pages
The foreclosure crisis is a complex problem, with no simple solution. Several factors need to be addressed in order to turn the foreclosure crisis around. The solution to solving and preventing further crises is a multistep approach that will take time. By setting up some safe guards we can help stabilize the economy and prevent future economic and housing market downfall re-occurrences. First, there needs to be more emphasis on creating jobs and bringing jobs back to the US from abroad. There need to be tax breaks for companies that stay in the US and more taxes placed on companies that choose to go abroad. Companies residing on US soil will need to pay a fair and competitive wage. Responsible people with a steady income and fair wage can afford to pay their mortgage. Second, there needs to be a tax or an extra charge on imported items. This would help encourage Americans to buy American made. There should be a more rigorous screening process on foreign imports to ensure safety and quality items are being imported, which would also help create jobs. There also needs to be more public education addressing buying American made products- creating jobs and protecting the economy. There are so few products produced in the US that this is part of the reason we’ve seen a collapse in our economy. Third, banks and lenders need to quit approving people for loans that are living beyond their means. Not everyone is entitled to own a home; they should first demonstrate proof of financial responsibility. A federal governing body should keep tabs on banks and lenders. Lenders found to be approving loans for people who are not qualified should be heavily fined. A person’s housing cost should not exceed more than 28 % of his/her income and ... ... middle of paper ... consumer finance class should be made mandatory throughout high school. It should address consumer finance, budgeting and saving, money and banking, interest rates, debt to income ratio, loans, retirement, and investing. We cannot expect consumers, especially young consumers, to exhibit financial responsibility if they have not had any exposure to financial education or a responsible role model when it comes to financial decisions. There are no simple solutions to solving the complex foreclosure crisis the nation currently faces. There are several factors that can be addressed that will, over time, help to stabilize the economy and prevent future economic crises. Change is a must. More education and an increased awareness of financial obligations can help to resolve the foreclosure crisis and economic downfall and protect our nation for future generations.

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