The Solution Foreclosure

How do we solve the ongoing breakdown of our economy? Simple we look at how others solved their economic problems. In October 29th, 1929 the day now notoriously known as black Tuesday or the great depression, 11,000 out of 25,000 of the United States banks had failed. The origins of the depressions are lengthy and disputed but what is relevant to this focus is that they found a solution to their quandary. Two Economist Waddill Catchings and William Trufant Foster speculated that there is an inequality of wealth and income to simplify their theory it was that the population did not have enough wealth to purchase the merchandise that was producing. This shows a relationship because people are economically scared, the average American makes 45,000 dollars a year and the average American spends 29,000 a year. So where does the other 16,000 dollars go for the 304,059,724 Americans. That’s 4,864,955,584,000 a year of surplus money! There are 435,000 foreclosures that roughly cost 600,000 that’s 26,100,000,000. Which may seem like a lot but it’s really 5 percent of our surplus. But lets get real not every ones going to give 800 dollars to buy out all the bad foreclosures. But taxes are on average 335.86 dollars a month if we added another 66 dollars we could be free from bankruptcy in 2010. What I’m advising is a mere 19 % increase in taxes to help the foreclosing houses of America.

Okay people may not be willing to establish in their mind that raising taxes is a reasonable solution but let us look at how a recession ends. It is kind of a trick in this case because the recession is solved the way it started. Think about it our current recession was caused by the over expenditure of credit the bank did not have money for. Therefore the...

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...ome together across party lines to address major challenges. This is such a moment." – George W. Bush.

He is right we need to come together but we can’t sacrifice our individuality to do so. I believe one of the things that makes America so great is that it’s a country of different beliefs and attributes that form one body to a common goal. In the late 1980’s the government created the Resolution Trust Company and acquired default mortgages and foreclosed real estate and spent nearly 125 billion dollars which is roughly 200 billion dollars now. This was a relief program that had solved the current crisis in about 6 years. Imagine what we are capable of now knowing how much smarter and more advanced our society has become.

This essay was more of an outlet to express my personal feelings to a problem that I feel we can solve. Thanks for letting me express my views.