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Piecing Together the Puzzle
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Essay by:Dell Jones
Emporia State University
Piecing Together the Puzzle
Over the past eight decades there have been many advances made in the United States, which can be seen all throughout our society. However, in 2009 the United States economical situation resembles that of, the Great Depression during President Hoover’s era. According to a quote during the Great Depression President Hoover stated, “Economic depression cannot be cured by legislative action or executive pronouncement. Economic wounds must be healed by the action of the cells of the economic body - the producers and consumers themselves.” In today’s society the government and President Obama may not be able to cure all economical ills, however the government has passed some reforms and others in legislation that are there to help the consumers and producers like President Hoover quoted. Some of the reforms would be the American Recovery and Reinvestment Act, mortgage rescue plan, and the Pickens plan are three such reforms in which provide aid and support for the American people.
The American Recovery and Reinvestment Act was created to provide aid to different aspects of the American society. One part of the act that I really support was the tax cuts to help workers and the economy. Through these tax cuts Americans will spend more money throughout all aspects of the economy. President Obama was quoted saying, “we start from the simple premise that we should reduce the tax burden on working people, while helping Americans go to college, own a home, raise a family, start a business.”(Obama). These tax cuts will not only boost business outputs, but also create and save over half a million jobs throughout the nation. These tax cuts will be able to help the small business owner save money and create more products that American people will be able to purchase. This is very important to me since, my father owns a small construction business. These tax cuts will put more money in the pockets of individuals and hopefully more spending on home improvement projects and more work for my father’s business.
The mortgage rescue plan put forth by the Obama’s administration is another reform that I support and believe was needed to get the nation out of this current recession. The rescue plan has been billed as helping up to nine million borrowers stay in their homes. The plan allows current homeowners to refinance their mortgages to allow them to obtain a payment that they can afford and provides incentives for first time home buyers. According to Wells Fargo, “We view this modification program as yet another incremental opportunity for thousands of homeowners to preserve and maintain their dream of homeownership.”(Luhby and Fargo). This is especially important to individuals in their twenties like me. This will allow those who are starting a family and buying their first home those incentives and encourages them to invest in a home.
Another plan put forth by Boone Pickens called the Pickens plan, to me, has been a long time coming. In his plan, Mr. Pickens, goes through American’s dependency on foreign fuels. According to pickensplan.com in 1970 we imported 24% of the oil the United States uses, and today it’s nearly 70% and growing. If we are so dependent on foreign oil we are in a bad position in a failing world economy. In the plan it calls for Americans to depend on more domestic energy sources. These domestic energy sources will allow us to replace our demand for foreign sources. Domestic natural gas is not a cure for our dependency on foreign oil, but it is a key energy source. According to pickensplan.com, “natural gas is the critical puzzle piece that will help us to keep more of the $350 billion to $450 billion every year at home.”(Pickens Plan). By keeping that money in our national economy and not a foreign economy, this will allow for future wind energy investments and in a smart grid to transport our domestic energy sources. Wind energy is a source of domestic energy that America needs to invest and commit to using. Through building the wind energy infrastructure and really on our domestic natural gas, jobs would be created and energy costs will be driven down. With the costs being driven to a lower rate Americans will then be able to take that extra money and insert it back into the national economy.
The American Recovery and Reinvestment Act, the mortgage rescue plan, and the Pickens Plan are just three reforms that are there to help the consumers and producers. President Hoover was correct in saying that it will take the consumers and producers of the United States to help kick start the economy back in the right direction. Through all 3 reforms America and Americans will be able to take that next step toward an economic recovery and provide growth throughout our nation
Work Cited Page
Obama, Barack. “Obama: Tax Cuts Help Workers and Economy.” Cnnmoney.com.
Luhby, Tami and Wells Fargo. “Obama Launches Mortgage Rescue Plan.” Cnnmoney.com. 21 April 2009 .
“America is Addicted to Foreign Oil.” PickensPlan. 21 April 2009 .
»A new report finds the main problem in getting the public to deal with our fiscal problems isn't opposition to tax increases or spending cuts -- it's their lack of trust in the government to spend their money wisely.