The U.S. Economy's Recovery Is Stronger Than People Think

Dear Heidi Shierholz,

Your facts really helped me write about ideas and policies that may or may not help the current economic environment. It gave me a start on how to write this for my class’ assignment. I would like to start by saying that in order for people to purchase more, prices of commodities would have to lower. Nowadays we see that oil prices have gone down much lower than the previous years. Consumers are content with the price and seem to be traveling more. As prices of commodities fall, producers are able to buy cheaper raw materials and sell to consumers for a higher price to recoup their loss from the economic downfall.

Strict regulations on lending, from the bank, would also prevent another “house market crash.” People who are eligible should be qualified buyers with excellent credits. In the Mishkin textbook, Money, Banking & Financial Markets, it was mentioned that “mortgage brokers often did not make a strong effort to evaluate whether the borrower could pay off the loan.” This concludes that the greed and money is what most people care about. It’s not about the economy that the brokers are worried about or the fact that the investors would foreclose their home, but it is more about them. There should be a fine for those brokers who are doing an appalling job.

Another thing that may help the economy is equality. The people living in poverty with really low income should be assisted. There should be a program to: help educate them in safety, literacy, sanitations and job training for easy-basic jobs that would provide healthcare. This would help more people who are immigrants to help boost the economy by putting their effort into producing products and providing services needed.

I’m not saying that people haven’t thought of these ideas yet. I just want to input my thoughts on it for this economic class’ assignment. It may or may not work, but it never hurts to try.

Jeanne N. of CT 4:02PM July 05, 2012