Repairing a damaged economy

Repairing a damaged economy

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Private student loans and tougher lending standardsThe ProblemsAs colleges increase tuition students are finding out the financial aid is not enough to help them. Private loans are the only option a lot of students have, but their lending standards are becoming to much.Making it harder for people to attend college has a negative effect on our economy.

The solutionThe government should find a way to make banks feel less pressure about lending private loans.The key to doing this is by offering the banks to pay half of the money if a student defaults on a loan.

High unemployment

The ProblemsOutsourcingThe long-term unemployed are giving up.Increase in crime rate

The solutionEliminate corporate expense tax.Start creating more jobs in America.Make it easier for start up businesses to get started and receive funding.

Decreasing GDPThe problemsA rise in interest rates can cause a decline in GDP.A rise in imports can cause a decrease in GDP.

The solutionIncrease customers confidence. Decrease interest rates.Raise minimum wage.Increase government purchases

The first suggestion to raise low GDP would be to increase consumer confidence. One way to increase consumer confidence is to raise the minimum wage level. Then government could also decrease interest rates which will allow consumers to make bigger purchases and a cheaper cost. Increasing consumer confidence will also increase consumer consumtion which is one of the main components of U.S. GDP. Increasing investments would help increase GDP. Investments lead to growth; it could be the growth of businesses that already exist or one that are just being created (Green, 2012). Government purchases are another solution to the problem of low GDP. This is one factor of GDP that the government has a lot of control over. The government usually spends money on agriculture technology, and education just to name a few. If they spend their money on the right things will cause in increase in economic activity way beyond levels expected. 4

A stronger economy

Make education more affordableCreate more jobsIncrease GDP