So my immodest proposal is simply this: Individuals and households in the bottom 99 percent who owe debt to any large financial institution that received federal government support during and after the 2008 crisis should see their debt forgiven. That would certainly stimulate the economy, as most people would suddenly find themselves with a great deal more money to spend on iPads (and food, and clothing, and housing, and healthcare). The debt can be forgiven by decree or if the government really wants to it can step in to pay it itself; I don’t much care either way. (Though it’d be nice to see it just wiped off the books, to enrage the banks.)
Let’s wipe the debt of the 99 percent off the books, tell the financial sector to eat it, and get on with our lives.
Would that be fair? Sure it would.
REMEMBER AFTER 9-11 WHEN BUSH TOLD US TO GO SHOPPING, to “enjoy life, the way we want it to be enjoyed“. Who do you suppose that benefited, exactly? He and his rich friends knew exactly what they were doing:
Median wages grew too little over the past 30 years to drive the kind of spending necessary to sustain the consumer economy. Instead, increasingly exotic forms of credit filled the gap, as the wealthy offered the middle class alluring credit card deals and variable-interest subprime loans. This allowed rich investors to keep making money and everyone else to feel like they were keeping up—until the whole system imploded. -– Study: Income Inequality Kills Economic Growth
Using 2007 figures, sociologist William Domhoff points out that the top one percent have five percent of the nation’s personal debt while the bottom 90 percent have 73 percent of total debt. — The Top 5 Facts You Should Know About The Wealthiest One Percent Of Americans