This election will be voted mostly on issues of personal economics. The domestic economic policies of the current administration have brought about many pocketbook issues. As much as we would like to vote for the candidate and party, money will figure heavily into who gets the vote.
To secure the vote of the majority of Americans, presidential hopefuls will have to convince voters that their policies will restore confidence in the United States economy. The change will have to come on several fronts in order to make a difference in most households.
The first problem is the cost of the war in Iraq. It is a continuous drain on any surplus funds available to the government. Solving the war will be the big dog on the economic block. The money liberated by a large scale troop withdrawal would be substantial both in terms of less government spending and less borrowing.
Next on the list is the mortgage dilemma. A way must be found to keep multitudes of families from losing their homes. This will not only harm those directly affected, but will cause greater problems in the housing market in general. A lot of homes being turned back to the market at the same time through foreclosure will drive housing prices downward. This will create more situations where people will owe more than their houses are worth.
In the long run, this will produce more foreclosures for those who were counting on home equity lines to bail them out of credit card debt. Their houses will be left hanging unsold on the market and eventually find their way into the foreclosure market, also.
Credit card issues are another giant gorilla waiting to pounce. If something is not address concerning 30+ percent interest rates, many more will be lining up for bankruptcy. This will put a further strain on the all credit markets including housing. Mortgage rates will rise and prices will fall farther.
Wages are rising too slowly to keep up with a rising inflation rate. Something will have to be done to get ahead of inflation. The best tool is higher interest, but this will only make the economy worse. Tax cuts will help, but they will balloon an already too large federal debt.
It is critical that candidates at all levels of the federal government run with some sort of a plan in mind. Solving these problems will take several years, but they can be fixed if we start now. Waiting until another congress is elected or the next president in four years is too long.
