WHAT CAUSED THE RECESSION?

Before we look forward to the ending of the recession, we must look back to its causes. Surely, the banks and C.E.O’s can take a lot of the blame. But the people who took the loans from Fanny May and Fredy Mac can take some of it too. Then there are the two wars. These add up to an apocalyptic powder keg, which just went of in our faces.

BANKS

The big banks and corporations can take a lot of blame for the recession. They used
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armies of lobbyists to remove regulation. And without any restraint from the federal government, they made many illegal and irresponsible investments. But when it came time to pay the piper guess who picked up the tab. In a free market you pay for your mistakes but these big corporations claim that they are to big to fail. If they fail then all the companies that they invested in and everyone with money in there vaults will go down with them.
When these banks lost money, they fired employees and made fewer loans. This in turn led to higher unemployment and less new business start-ups. This led to even higher unemployment. These banks have to be punished but they are to big to These banks have to be punished. But they are to big to fail aren’t they?


LOANS



Many people took out loans that they new they could never pay back. Now they are being foreclosed and many people lost the money they invested in the houses. The homes now stand empty, a grim testimony to the nature of out nation. With the houses gone, all the money that went in to making them vanished. With all this money vanishing almost into thin air it’s no wonder we’re in a recession. (I know I know the recession’s over but tell that to the millions of unemployed) These faulty loans are blamed on the banks but the people who took them out are as much to blame, A bank wants a loan to succeed the buyers just wanted houses.


WAR

The wars in Iraq and Afghanistan these two messes are not just costing our soldiers there lives and sanity, they cost us millions too. War is usually an economic boost with research into new weapons, industrial booms, and many more jobs not just on the ground but in training, legal, diplomacy, and the logistical parts of the military. But this war is horrible we took out loans that we used to fund the war, we gave no money to industry or research we only hired soldiers, this lead to a horrible mess. And then our debtors came calling, these wars cost us a lot we should end them.






BUILD



The first step to recovery is to build up our infrastructure, businesses and schools.


HOUSES

The first step in my plan may be controversial but it will work. It can be carried out in two ways.
The first way is to give money to groups like Habitat for Humanity. If we do this we must make H.H.F. use construction workers and by from full priced supplies. These houses will be given to the homeless when completed. This method is good because H.F.H is already skilled in doing this. Its bad because these groups are based on volunteer work and does not hire workers, which is the basis of the plan.
The second way is to have the government pay for the houses directly and give them to homeless people directly. Families with children are to be given houses first then young couples with no children followed by older couples with no kids and finally singles with no kids. The homeless will get these houses for free but will have to pay the government back once they get a job until then they get workfare, which would decrease if they do not look for a job or get job education in six months (workfare is welfare but where you do community service). This can also be done with foreclosed homes as well.
This plan will stimulate the economy with all the jobs made by the construction of new houses. Think of all the industries involved in house building: construction, timber, transportation, steel, mining, iron, electricity, and plumbing. Then think of all the jobs created when a person moves into a neighborhood: teaching, service, food service, childcare, cars, furniture which helps the lumber industry, clothing, technology, pets, manual labor, medicine and entertainment and farming. Then think of the fall in crime, with a house people will be able to have a base where they can get a job and earn honest money. The kids will be in a classroom and not out doing or selling drugs. When they get the houses those without college degrees they should get student loans from the national bank they should only have to pay back less than half of the loan. This plan would jump start the economy, decrease crime and make a lot more healthy neighborhoods, with less abandoned houses just weighting to become crack dens.


DIGITAL BUSINESS START UPS

The internet is the next front of business. Old businesses will die out to make way for new businesses. These new businesses will operate in a new business world with a new business model. But these new businesses will need money to start them selves up. They won’t need much just, a few hundred bucks, or even less. Facebook only needed 50 bucks and that was just for the webspace. Companies that sell stuff will, of course, need more for inventory and shipping costs. Old companies should be given cash backs and tax incentives to enter the web in a more visible way. Experimentation with the business limits of the internet and new internet versions should be encouraged. The recession is in part the business world adapting to the digital age this adaptation should be encouraged. When the dust settles we will be looking at a new business world, one that America can be on top of.

The first step in this venture is to find the needs of businesses in the digital age. Not just monetary needs but also human resources and tech. then find out how to supply those needs. The third is to supply them. This will make a new era for American business an era of growth of change. To appease those who are worried about cost over-runs this will cost almost nothing.


IMPROVE THE INFRASTRUCTURE

The base infrastructure of this country has been unchanged in a hundred years. Imagine the jobs created by fixing all the sewers in the country, or fixing the train tracks, or the energy grind or the water system. And, I don’t just mean the fixing jobs but the jobs in keeping them fixed, and running the new systems. That’s right I mean to rebuild the infrastructure not just restore it. Instead of coal as the base for electricity why not solar or wind. And make the grid smarter so it can redirect power a round damaged lines to your house. Right now, a lot of our power comes from miles a way. Why not localize that power?

Did you hear about the pipe explosion in that town? Well if we reorganize the pipe system it won’t happen again and there will be less water poisoning with a better pipe system.

Right now, our train system sucks, think about it. How long do you wait for a train? Well, if we fix the trains you won’t wait any more and we’ll have an environmentally friendly transportation system. We could make our trains maglev, which is completely clean and can get to NYC from LA in 5 or six 6 hours.

The physical infrastructure is not the only thing that should be fixed the digital infrastructure needs serious changes, and by changes, I mean coming into existence. With a growing need for digital access, setting up public Wi-Fi is vastly important, setting up Wi-Fi is almost free and can make large amounts of money for the country, by charging just 1 an hour dollar to use the Wi-Fi, the nation can make huge amounts of cash in a very short time.






REAP THE REWARDS

If we follow these steps we will soon pay back china and become a strong world power. Soon we can rise to the top once again.