Although every single economic enhancement program launched by this administration has been a failure, you do have to give it credit for trying since the failures happened is so many different ways: Failure Type 1 – these failures spent a lot of taxpayer money to incentivize economic behavior that would have happened anyway. Two prime examples are the Cash For Clunkers program and the First Time Homeowner Rebate program. While these two programs created a temporary blip in demand, once the incentives ended, demand fell below a business as usual expectation, indicating that demand was moved up but not created since the uptick in demand during the program was offset by the down tick after the program ended.
Over the last 18 months the United States has seen a low interest rate environment. This has helped many Americans to get lower overall rates on their charge card but some people have not taken advantage of this. By doing research and taking the time and effort to improve a credit score Americans have the ability to lock in to very low interest rates on any amount of money they borrow.
It is very important to understand that interest rates on credit cards or any loans will be greatly determined by a credit score. With a credit score below 680 it is going to be extremely difficult to find low rates on credit cards or loans of any type. Unfortunately, it seems to be the case that the low interest rate environment may be coming to an end with mortgage rates moving up at the beginning of April.
The Federal Government credit card debt relief plan may be just what is needed to help Americans pay off credit card debts. By educating themselves, credit cardholders have a better chance of attacking their debt problems.
“If that’s the only thing that I can vote on, I’ll vote on it,” said a New Jersey Congressman. “It’s really not a jobs bill. It’s only one small piece,” said a California Congresswoman. “It’s an insipid, weak piece of legalisation,” said a Washington Congressman. “It’s not that good but it’s better than nothing,” said a Massachusetts Congressman. “It simply encourages conduct that would occur anyway,” said a Texas Congressman. See Cash For Clunkers above. If the people who constructed and passed the legislation think it stinks, what chance does the bill have of being successful? With everybody bad mouthing it and having no confidence in it before it is put in place, $35 billion is wasted since the bill was dead on arrival in the real world. Wow, who thought that the political class could fail in so many ways? It would be comical if they were not wasting hundreds of billions of taxpayer dollars and driving us deeper and deeper into debt without any resultant benefit. If all of these programs failed miserably, maybe it is time to take a totally different approach to managing the economy. The one area that the Obama administration and the political class has not tried is to do less, rather than more. Every time they do something, given their bungling, they interject more and more uncertainty into the market and economy. The last thing a business owner or operator wants in their business life is uncertainty. You can at least plan in a certain world, you cannot plan effectively in an uncertain world.
Learn more about Obama Mortgage Relief Plan Qualifications.