The United States has dealt with many challenging problems in the past, but now our country is faced with an even bigger dilemma: the Foreclosure Crisis. Beginning around 2007, a rise in foreclosures around the country threw people out of their homes, and the number of foreclosures continues to rise at an alarming rate. This crisis has to be solved as soon as possible, but how? The Foreclosure Crisis will end when our economy improves, when we are less dependent on oil, when we look to our own resources, and when more job opportunities arrive. The vicious circle of the economy in the United States has been revolving for a long time. With the economy in a bad place and importing oil from foreign countries, oil prices will rise. Since Americans rely on oil too much they have to pay for the oil, and when oil prices rise Americans pay more for what they used to get for a dollar a gallon. Not only do Americans pay more for oil, but companies do as well, causing increased prices for everything. The cost of driving your car to work and mowing the lawn will skyrocket. The cost of transporting goods such as groceries will rise, just as importing goods from other countries rise. Because everything is more expensive, Americans have less money to pay for bills such as house payments. Companies suffer from a decline in consumer buying and productivity rates fall, causing many companies to lay off loyal employees. Many people lose their jobs and sooner or later people go into debt without any way to get out of it. Then people take out loans that they can’t pay for. Before they know it collection agencies are knocking at their door with a notice that their house will be sold at an auction while they are left in the streets, result... ... middle of paper ... ...erican would be employed and off the streets in the United States. When the economy finally recovers, our country could also help developing countries to do the same. The world would see our example and want to help as well. Every country in the world could be developed in hardly no time at all. All of this could happen, beginning with drilling in Alaska and becoming less dependent on oil. When the United States economy improves, when Americans become less dependent on oil, when drilling in Alaska commences, and when more job opportunities arise, the Foreclosure Crisis will end. Everywhere in the nation foreclosure rates will drop and the United States will be more unified than ever. If one problem could be solved, the rest will solve themselves. The Foreclosure Crisis can be solved, the economy can be regenerated, the United States will be a better place.
To solve the foreclosure crisis we must take a multi-pronged approach that tackles the issues making the situation worse and that caused the problems in the first place. Our goal is to do this in an efficient and time conscious manner. Any solution is going to have its positive and negative aspects but we must try to maximize the former and minimize the latter.
As our deficits continue to rise, our government should focus on ways to increase revenue and reduce the national debt. According to the US Debt Clock, if the U.S economy were to suddenly crash, each citizen would owe $202,835. That is more than the average citizen were to makes in 4.4 years. In 2014, a wage survey concluded that the national average wage per citizen was $46,481.52 (Social Security). If the United States continues to ignore the debt that is lingering, the countries that we owe money to could cut us off from trade. If this were to occur, not only would it hurt our economy, but we may end up in another great depression. China, Japan and Brazil are just a few countries that the government is in debt to. Even though there are other areas of concern such as military, education, and social security that the government needs to allocate spend to, reducing the national debt is what our government officials should be their primary expenditure considering how large our debt has gotten to.
Since being founded, America has been a capitalist society. Being a capitalist society has its benefits, and the consequences are rather harsh. To be a capitalist society people must be buying products and spending money to keep the economy balanced, but once those people stop spending money, the economy goes off balance and the nation enters a recession. Once a recession drastically takes a downturn, the nation enters what is known as a depression. In 2008 America entered a recession and its consequences were severe enough for some people, such as President Barack Obama, to compare the recent crisis to the world’s darkest economic depression in history, the Great Depression. Although the Great Depression and the Great Recession of 2008 have similarities and differences between the stock market and government spending, political issues, lifestyle changes, and wealth distribution, the Great Depression had far more detrimental consequences than the Recession.
The U.S. economy is very important to many governments around the world, which mostly depend on the U.S. to function properly. Without the strong economy that the U.S has had, the economy of the world economy would not be in a stable manner as it has been in the past years. Foreign economies depend on the U.S. economy for factors such as, importing and exporting goods. However the economy has not been doing well for the U.S. in the past few years, but slowly it is still repairing itself from a recession but the country is still not safe from being a country without economic
Foreclosure in America has been a rising and prominent problem recently, and has destroyed many Americans hopes and dreams. Over 2.3 million homes were foreclosed in 2008, and an estimated four million homes will be foreclosed by the end of this year. Despite the efforts of many banks and lending companies, over half of homes will foreclose that have received their help. I believe that we have only started in the right direction in solving the foreclosure crisis. Giving money and lowering mortgage rates will help, but I believe we should find out why Americans are in this situation in the first place. We are being too stereotypical when we think the only reason someone is foreclosing is because of irresponsible payments or buying a home out of a person’s capabilities to pay for it. If we understand their situation, we will be better enabled to help and solve their crisis.
It’s important to note that the solutions made above should be on a person-to-person basis and do not apply to everyone. Yet, if possible, it is to the best interest of all parties to see that these solutions are implemented. For in every city, in every neighborhood, and on every street, there is someone facing foreclosure. If not for the empathy of another’s pain, then look at it in terms of how it’s hurting you. If you’re a neighbor, you’re left with an unsafe, empty neighborhood and a house that’s worth considerably less because of it. If you’re a bank, you’re left owning a house with unpaid mortgages and annual property taxes. If you’re an investor, you see your shares decreasing in value which takes money out of your own pocket. The foreclosure crisis affects everyone, and it’s about time that we realize that.
Environmentally the US and entire world economy isn’t doing well. Every since the terrorist attacks in 2001 the US economy has been doing poorly. The housing market has crashed and oil prices have risen reaching over $100 a barrel. Both of these things have lead to higher prices on gas, groceries, and more. Consumers are afraid that their investments are going to default so they are pulling out of the stock market and losing faith; this had lead to dramatic drops in the stock market. In order to fix these problems Bush and the US government made $700 billion bailout for the US financial institutions. This helped the US regain some faith in its investments but overall has been ineffective. Outside of the US there have also been many economic problems; all markets are doing poorly.
Like any other country, United States is also facing problems like unemployment and poverty. The main reason behind these problems is the unequal distribution of wealth among individuals, A small number of people held a large proportion of the nation’s wealth while others fell into poverty, which is creating large gap between rich and poor where an ideal economy consists of more middle class groups. The powerful corporate institutions mostly dominate our economy and as well as our political system. United States economy is one of the best economies in the world yet it is facing problems like any other country and more problems are yet to come which may cause the economy to collapse. Economy collapse leads to number of problems such as the value of a dollar will become an almost useless form of currency, Supply chains will fail very few people will be willing to accept payment in dollars, the collapsed dollar makes imports very expensive and exports very cheap, rising import costs will likely lead to hyperinflation and there will be shortages of goods including basics such as food and oil.