Why not invest in the people?

The government is close to being done spending $700 billion dollars trying to rescue America various other countries banks and financial markets. They spent that money in various ways, reworking their strategy every few days trying to stimulate the economy. The government now owns stakes in the countries biggest national and regional banks, in the hope that they will turn a profit once the 鈥榗redit crisis鈥?is over. Now, the auto industry is asking for money from the bailout with the intention of actually helping working people. How much has the government helped working Americans with their bailout? I don鈥檛 think anyone, not even Hank Paulson can tell you.



Here is a proposal. One for the people, one for the economy, and it could even be possible for the banks to benefit. What if the government forgave its student loans through 2009? What are the possible benefits from this? Working Americans would have more money to invest, take out home loans, pay back home loans, buy a car, buy in general, and put into savings.



A few months ago, the government gave a great deal of Americans $300-$600 which increased consumer spending for about two months. With forgiving government student loans, many Americans could be saving that much every few months. Those savings could be then invested in a home and car loans or paying back loans already taken out. Those that do not take out a new loan or have other loans to repay would have more money to buy consumer and material goods. Other options for the money that these Americans would save could be invested in the markets or even put into savings. Both of those options would add liquidity to the market.



This would not be a quick fix to the market or the consumers, but would infact provide longer term benefits then the economic stimulous package did. The Americans that would benefit the from this package would be the same ones the credit crisis is effecting the most. Why should the government be giving the rich or the irresponsible more money? Why not give back to the Americans who worked hard to get a better job and be able to afford a better life? And if the goverment is planning on spending $2 TRILLION dollars more (as Bloomberg reports), wouldn't this be a much better use of our money?



Please think about this. Tell me what you think of my idea or how you would tweak?



Why not invest in the people?
1 I assume from the question that you have a student loan.

2 another suggustion that leaves me paying for others luxuries.(note I have already paid for 2 college educations in cash for family members from a career that did not require me to have one. and am putting money aside for the kids college.)

3 if implemented this will grow untill every one will be claiming their right to a free college education.

4 we need ideas to help this economy that can be done by individuals or small groups what built this economy was personal effort not goverment dependance.



Why not invest in the people?
Taking responsibility for your student loan or home loan is the answer.