The key point to remember is that although the foreclosure crisis has burdened the entire world economy, there are principles that we have learned and can use moving forward in determining public policy. The law of unintended consequences was apparent as policy makers made, in hindsight, what seem to be maligned policy but at the time wanted to help people live the American Dream.
The key to emerging from this crisis is education. As a recent economics graduate, even I was never taught about the foreclosure crisis. There seems to be a real divide between what happens in the real world and what happens in the educational system in America.
As a child, growing up in the public education system in the United States, I learned about many important things. I learned what I thought at the time were the essential principles of life: the human body, the solar system, history, mathematics, civics, and science. As I reflect upon my educational career, I realize that at no point was I ever challenged to use this information in a practical way. I have now come to realize that while I learned the basics of how to calculate compound interest, the importance of its wonders was never explained to me.
As a typical American student, I have learned extremely beneficial information but I have learned nothing about personal financial management. I never learned about the wonders of investing a little bit of money ever...
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...en since its birth 233 years ago.
There can be no argument made against educating students about financial management. It is a well known fact that much of our growth in the past decade has been due to the growth of a global economy willing to finance our consumption through buying our debt and keeping currency rates pegged at a certain level.
While I agree that global partnerships and trade is beneficial for the world as a whole, I also believe that relying too heavily on foreign countries can put us in a precarious national security position in the future.
These facts are little known to the average American citizen, again adding to the divide between the American Education System and the real world. Therefore to solve the foreclosure crisis as well as other real world problems, the American Education System needs to more properly prepare its students.
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