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Throughout American history, there have been a plethora of financial debacles within both the housing and stock markets. The sum of the money lost in gained in a period of hours could easily equate to that of a small third-world nation. No matter, the money that has been entrusted into the nation’s economy is not to be considered only numbers, but people’s livelihoods. With that point, it is important to note the recent economic decline that has plagued the American marketplace.

All over the country citizen are being evicted from their homes due to mass foreclosures being conducted by the banking and mortgage agencies. The foreclosures being performed, however, are a direct result of the customers defaulting on their payments due. The reasons behind the defaults are as numerous as the customers, leaving the industry with no other options. Therefore, this debacle has raised red flags within the nation’s capital, whereby lawmakers have begun to scramble to formulate a solution.

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Congressional Avenue of Approach: Bailout The solution that the Congressional lawmakers formulated consisted of a $700 billion ($700,000,000,000,000,000,000) investment (bailout) into the mortgages of the customers who defaulted on their payments for companies such as Fannie May and Freddie Mac. That means that the lawmakers spent the tax dollars of that American paid and invested it into an uncertain return to assist the private organizations who lent the money to the willing customers.

As a direct result of the proposed $700 billion dollar package the national debt ceiling would increase to $11. 3 trillion ($1,000,000,000,000,000,000,000). (Herszenhorn, 2008). Layman’s Avenue of Approach: Personal Fiscal Responsibility The time has long passed that Americans get back to the basics of fiscal responsibility. There is an adage as old as time which speaks volumes as to how money should be handled, “If you ain’t got, don’t spend it.

” Time and time again, Americans continue to endow themselves in the habits of wasteful spending without thinking of the financial repercussions of their actions on the family they provide for and the economy they serve. Though spending is the lifeblood of a working economy, responsible spending is the principled course. Otherwise, the accruement of needless debt occurs, whereby a customer easily becomes inept to pay the irresponsible amount now owed. Everything essentially comes down to personal responsibility.

Furthermore, though commerce is a constitutionally mandated legislative prerogative, and the economy is an executive concern, that is still no basis for the government to repair the problems of the private marketplace. The American companies who contributed to the delinquency of the defaulted customers are responsible for the issues facing the economy. Therefore, those responsible should initiate their own plan to resolve the problem, even if it means American citizens losing their homes. Again, personal responsibility plays a key role when an economic upturn is at stake.

Finally, though the $700 billion investment appears to be the ideal approach on the surface, the fact remains ever present that the message sent to big business is that the government will save you if you are going to become a bankrupt organization. The job of the government has never been the babysitting of big business. The job of the government has always been to facilitate and big business in matters relating to government enterprise, tax concerns, and all other matters related to the strict parameters of the law. Never has it been the job of the United States government to pay for the irresponsibility of its citizens.

Therefore, the Americans should bear the oppressive burden they have placed upon themselves until the matter can be resolved over time. That will teach the present generation of Americans the value of a dollar and the fact lesson that though the dollar might not always be seen it doesn’t mean it doesn’t exist.

Bibliography

Herszenhorn, David (2008, September 20). New York Times. Retrieved October 22, 2008, from Administration Is Seeking $700 Billion for Wall Street Web site: http://www. nytimes. com/2008/09/21/business/21cong. html

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