Science Forums 2

[Overdog]

What are some ideas as to ways we can solve the current economic crisis?

Seems to me we've had this problem before. The government subsidized agriculture back in the 60's and 70's and created huge agricultural surpluses and about 100,000 farmers that the free market would never have created. To solve the problem Regan stopped the subsidies and paid farmers in surpluses of crops. It was called Payment in Kind. Eventually, those excess farmers all went out of business and we had the "Farm Aid" concerts, etc., that some of you may remember.

It seems to me the best way to address the economic problem we now face is for the government to buy up the foreclosures and sell the properties back to the construction industry over time (at some discount of course) in exchange for them not building new houses. This would be similar to the Payment in Kind program.

The market is adjusting to a housing surplus, and it cannot be stopped. The current financial rescue plan just passed by the senate will not stop it, and will just be a huge waste of money.

Now, this idea would probably be even more expensive than the 700 billion, but it would be a solution.

What are your ideas?