posted on Feb, 7 2011 @ 12:18 PM
Firstly, let me state that I am an idiot. I know no real knowledge of how an actual economist thinks. I am a regular person who happens to be caught
up in the middle of this disaster.
The general consensus is that Real estate is at the root of this current disaster. At the present time, the market is flooded with properties for
sale, and very few investors are purchasing these properties. So we have a huge gap in employment associated with the building industry. It trickles
down (or up depending on how you look at it) to all aspects of our existence. People can't find jobs, so unemployment goes up and our tax dollars
are spent assisting the people who would be much happier working than getting assistance.
Here is my proposed solution:
Grant a 3 year reprieve on capital gains tax. This way, any investor can purchase a property without fear of losing 50% of his speculated financial
windfall to the government. Properties would sell quickly and the supply would revert back to a normal level. The housing prices would stabilize on
a real number instead of the inflated prices of the last few years. Once the housing market is repaired, the unemployment should start to go down as
more builders would be actively building properties and people could go back to work. The investors would make money, the banks would have money
flowing in and out, a stimulated economy would lessen the fear of spending and we could actively get back to living, instead of worrying. The loss of
capital gains tax should be washed out with the reduction of unemployment payouts and the economic boom. And the best part is it's easy to do.
It this idea won't work, please explain it as if you were talking to an idiot.