Thanks to 24/7 News channels, we are witness to a historic political debate that is raging in Washington. The debate has grave implications for the future of the U.S. economy, and there appears to be general consensus on the goals of:
- Economic expansion
- Job growth
- A healthy and stable housing market
- Inflation under control
- Energy independence and
- All while closing/eliminating the deficit between revenue and expenses
The “right” approach to the economic problems facing this nation is different, based upon the particular perspective of the elected representative in Congress. In truth, one single approach is probably not the best solution.
One perspective is that the system should be designed for the “haves” to have more, so that they can spend more and therefore stimulate the economy. This theory pushes corporate profits to higher levels, giving businesses the ability to create more jobs. With job creation come additional taxpayers. This in turn should result in more tax revenues which will lead to a balanced budget. This is sometimes referred to as the “trickle down” theory. Benefits begin at the top of the “food chain” and then trickle down to the bottom.
A second perspective is that the system should be designed to protect and improve the lot of the “have-nots” and “middle classes”. This theory allows for their families to pay their bills, spend their income on the essentials, and buy homes. In turn, this will generate a higher level of economic activity, create additional jobs, bring stability to the housing market, and creep up to enhanced corporate profits and bonuses, economic growth, and higher tax revenues to apply toward the deficit.
The political debate is framed in terms of the positions on such legislation as tax cuts, unemployment benefits, energy policies, and social “safety net” programs. I trust that the vast majority of our elected representatives have the best interests of America at heart, and simply differ on the basis of perspective or philosophy. I pray that it is only a small group of our elected representatives who are abusing the debate to sabotage the American economy for political gain.
Until Congress and the Administration decide to work together to solve the huge economic problems facing our country, we will remain “stuck in reverse”. There are areas of compromise that have the potential to move America forward. As a Realtor, I fervently hope that the politicians come to their senses very soon. The housing market can’t handle much more “politics as usual”.