Mortgage rates are at all time lows and home prices are down. Refinance applications are 30% below last year's levels and purchase applications are down 15%. Why? Jobs. The only factor that will stabilize housing markets across the country, which will lead to higher local and state tax revenues, is getting the unemployment rate near 7%.
GOP Presidential candidate Mitt Romney has his almost two hundred page plan, President Obama will give us his plan tomorrow night in the State of the Union over about 40 minutes. We hear and read about what our politicians should do to stimulate the moribund economy and job growth from both sides.
Here is what I would do if I were in a position to influence government policy to stimulate the economy, encourage businesses to invest in growth and hire new workers. It won't take forty minutes or two hundred pages. This is based on my experience as a small business owner, my education with a degree in Economics and Political Studies and more than two decades working with families and discussing their financial situation in depth.
There is not complicated plan to stimulate our economy. Get government out of micromanaging and regulating markets, get government out of taking profits in the form of more taxes and get government out of printing more money to create more government. Do those simple steps and America's economy will grow, millions of Americans will get back to receiving regular paychecks, home values will stabilize and begin to grow, and tax revenues will grow.
Shrinking government means many in government will lose their jobs; but better to lose ten thousand government jobs than ten thousand private sector jobs. Ten thousand new private sector jobs will create several thousand more; ten thousand new public sector jobs will lose several thousand private sector jobs as taxes will have to be taken out of the private sector to pay for those government jobs.
Enjoy the President's speech, I will be looking for anything new that has not been part of the political agenda since January 2009. Something has to change because what has been occurring in Washington since January 2009 has only led to more unemployment and less economic growth.
If you agree forward this to your Congressional representative.
Dennis C. Smith, California Dept. of Real Estate Broker #00966315; NMLS #296660
Stratis Financial Corporation, California Dept. of Real Estate Broker #01269597; NMLS #238166
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