Lets try and break the deadlock

In a functioning democracy with free speach, and now the internet and blogs, we are all able to say our piece whether we agree with a point of view or not. Additionally we all have our personal gripes and favorites and express them in no uncertain terms in all forms of media. Additionally the level of knowledge and ability to communicate them also varies vastly from person to person as can be seen from the various blogs and letters that one reads as well as the comments on these blogs. The prejudices of a lot of people are also aired pretty openly so that one can get a feel of the mood of the writer.

Then there are all the personal hardluck stories, where some shout louder than others over the personal tragedies which we all face in some form or another and handle with different levels of forebearance and fortitude. Even in this area it is common knowledge that in crises the really hard up cases are not heard nor are they found and so do not even receive the levels of basic attention they are entitled to in some cases of tragedy.

In all these how do we find common ground from which we can begin to solve the country's seemingly insurmountable problems. Even in the Houses of Congress it is apparent that politics plays a role as the constituents feelings are sometimes expressed by the congressmen which differ markedly from the party line. In coming to a compromise, there has to be a give and take from both sides and how much one gives is the key and not how much one takes.

In these heady days where there are urgent matters to be settled and compromise has to be reached hastily, certain party line differences need to be ignored and a consensus building process entered into. In the case of the new President he is able to with the goodwill generated from his election and the post election expectations to break the deadlock and come up with some unanimous proposals, so that there are no doubting thomases in the 'I told you so mold'. Even if the proposal when enacted does not work it was not for want of trying, as there are no fixed solutions to these problems and only ones that are hoped will change the status quo.

I believe we really have to come together in these tough times and build confidence which is lacking and which will not be forthcoming without unanimous support.So I request those who are fortunate enough to have the power to change our lives, that they do so with haste before matters get worse and do it effectively, decisively and unanimously.

Financial Crisis

A possible way to resolve the financial crisis in the United States

I propose we home in our focus on the individuals directly affected by the fallout of the current crisis. We then analyze how they can be fairly assisted without penalizing those who have not contributed to the crisis. Therefore those primarily affected most seriously are those who are likely to foreclose on their homes, those who are likely to lose their jobs, and the retired and those about to retire in the next two years, whose pension funds have fallen in value drastically.

On home foreclosure, the initial proposal for a 90day moratorium on repossessions is a good one. Then I propose a revaluation be done on all homes and where outstanding mortgages are more than the revised value, the banks be assisted by way of a debt to the government of the difference. The homeowner is thus given a revised mortgage (at 100% of valuation) to repay at a now revised rate of interest. The homeowner then has the chance to walk away or accept the revised mortgage. No tax will be assessed on the difference in loan amounts. For those likely to lose their jobs, one can extend unemployment benefits for a further 6 months, but also give a subsidy to the employers for worker retention, so that unemployment benefits are not needed when a job is saved. This would only extend to some industries such as autos, where it is decided in the nation’s interest to protect them. In construction, where this cannot be done, these workers to be offered alternative employment in public works projects, if they so wish, that are much needed, such as schools and road building, repair and renovation. For retirees and immediate retirees, some sort of income supplement for a few years, to ensure they are above the poverty line, would be an adequate method to cover this sensitive section of the population.

The crucial point here is that all these proposals will directly put money in peoples pockets or prevent them losing consumption funds. This will go directly to stimulate consumption, which is in danger of falling, with the attendant job cuts in sectors such as retail and restaurant services. This will be politically acceptable, and will be a real stimulus package. Of course tax cuts for the middle classes will also help in this consumption led recovery.

It is also as projected a good time to begin giving aid to industries in the so called Green Job sector so that a structural change can take place to prepare the economy for environmentally sound and sustainable, renewable energy.