Because the consumer continues to be under represented in important, national issues, the government makes knee jerk decision based on input from the actual kneejerkers that caused the problem in the first place. Fixing the economy is easy. Empower the consumer by waiving all interest charges on old debt.
Empower the homeowner by waiving interest payments for a year or two. Even if the payments remain the same every month, apply the ENTIRE AMOUNT towards the principal. This will do a heck of lot to help the economy. Discourage buying things on credit or with 12 months no upfront payments.
If the economy gets back to being real, then the condition of the economy can be reassessed in six months to a year and adjustments made that that time. Nobody is willing to acknowledge that the banking and investment industry suffocated too many people by having them pay too much in interest. Nobody is willing to take the government to task for wanting to much in the way of taxes without providing anything to help the economy.
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