Recession tagged:

The New Great Recession

Nodded by in Politics

The Great Recession started in late 2007 with the collapse of Lehman Brothers and the Housing Bubble.  Almost five years later, the American economy is slowly beginning to shows signs of a true recovery.  And now, the horrific effects of the Great Recession are everywhere;  twenty five percent of all American homes are underwater, worth less than what is owed, unemployment is about 8.5%, from 4.8% in 2007 with millions of long-term unemployed, more than 2 years, and an American leadership so divided by political infighting that it is ineffective.

Unfortunately, against this backdrop of economic problems, is when strong leadership is needed the most.  America needs leadership and programs the likes of which haven’t been seen since Franklin Delano Roosevelt’s New Deal.  Instead, America got TARP, the largest nationalization of companies in history.  Big banks, insurance companies, car manufacturers, and even foreign banks were given a lifeline of cheap loans to see them through the “credit crunch”.  Now it’s time for a TARP-like program for the American people.

This new program must help America’s middle class by forgiving debt, encouraging continuing education, and spending more on national infrastructure because forgiving debt will encourage more spending and, thereby, revive American’s consumer-oriented economy, encouraging education will make American workers more globally competitive and, thereby encouraging employers to keep skilled jobs local, and investing in national infrastructure will, in the short term, produce jobs, and in the long term, will increase the efficiency at which America transports its goods and services.