Economic Crisis - Solution From the Middle Class

When tough times befall us, it's usually the common man's place to right the wrongs that have been dealt to him. In other words, the middle class must pay the blunt of the mistakes, made financially, by the well-to-do and greedy class.

The bottom-line in this current financial melt-down or recession is how are we going to fix the greed in this country, in order to give back the right to the middle-class, to operate a family's budget that allows for an occasional ice cream treat or a trip to the amusement park?

The answer lies in the middle of the greedy pile of decisions to squeeze out the middle class from keeping their heads above financial drowning back in the mid 1980's.

As long as the rich were amassing fortunes from this tax and that oversight, the middle class were able to weed their way through the economy by seeking some relief through the tax breaks that were available. Once the rich saw a way to pinch off the tax breaks, in order to further separate the wealthy from the middle class, did the recession train of the 21st century begin to pick up steam and derail the entire American economy through their own greed.

To better explain this unwise decision to end a plausible means of dealing with the tax hungry legislators, The Reform Act of 1986 was a 829-page bill during President Reagan's reign of financial economics that was enacted that put an end to allowing the middle class to write-off their interest paid on credit cards and car loans, what the law termed as 'consumer loans.' from their income taxes.

This tax code change was designed to step down, in increments, the ability to use the tax write-offs that helped the middle class to keep up with their overwhelming taxes. By design, it was to curb spending and thus maintain a more stable economy. Oh, did I point out it did nothing to stop the greed of the wealthy from continuing to gouge the middle class, including credit card companies and their interest rate greed?

In order to once again, allow the middle class to right the economy, it's imperative to re-instate the ability to let consumer loan interest to be tax deductible. If allowed, the immediate relief will be felt, financially, to the middle class, and to further restore the economy, the lawmakers must enact a bill to crimp the abilities of the wealthy, which includes creditors, banks, and mortgage lenders from making any attempts to raise interest rates that would undermine that balance to the economy.

In hindsight, the lawmakers were trying to use the middle class to regulate the rich, when it reality it should have been the other way around. Aside from the hedge fund greedy and the fuel gouging prices, the American consumers have managed their wallets better than the wealthy have managed their greed. Given the time span of when The Reform Act of 1986 was passed into law, and the current condition of the economy, the middle class were able to survive until the wealthy had created ivory towers that were oblivious to what it takes to live above their own means.

If you agree with the viewpoint of this article, I would ask you to share this opinion with as many other people as possible. Waiting for the wealthy to fix what they didn't know how to stop in the first place, will only defer the repairs needed to get our economy back on track for the long run. The current administration is trying to get the train back on track, but to stoke the engine for the long haul, we need to know that we can offset the costs for the middle class or the demise of our economy will continue versus recover.