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Thread: Debt Forgiveness

  1. #1

    Debt Forgiveness

    Program : Debt Forgiveness

    Purpose / Method : Stimulating the economy by forgiving Middle Class Debt

    Justification : Class action to make up for failings of 2 Party Political System as it pertains to the Middle Class. Also,
    Cross reference : Thalidomide and Mesothelioma / Hard Reset / Need to reduce Unemployment.

    Special Notes : This proposed program is one several unique ideas to come from the "think tanks" at Middle Class America and is meant to
    stimulate discussion. While it is not necessarily the primary focus of the Middle Class America Party Platform it is still
    a potential program worth looking into and considering integrating into our political party's platform. Giving us feedback
    helps Middle Class America, help you. Take part and help us take back America and make it great once again.


    The Debt Forgiveness Program is perhaps one of Middle-Class America's more controversial / intriguing propositions to help stimulate the economy while providing some form of restitution for previous wrongs against the Middle-Class Americans as a group and to help jump start the
    US economy and restore it to its former glory.

    Background:

    Many Middle Class Americans face an overwhelming amount of debt. This can be in the form of home mortgages, student loans, car payments, credit card payments, medical bills etc....Much of the Middle Class Plight can be attributed to the current 2 Party System and their backing special interests. (Click HERE to see how / why your medical and other bills are so high - NOTE: the link may be set up at a later date).

    Because many people face an uncertain future, both in terms remaining gainfully employed (not having their jobs outsourced or hours cut back), and the crushing debts mentioned above, many people are hesitant to spend money… The lack of spending in turns reduces consumption and thus demand for products to be made which has a snowballing effect of potentially causing more layoffs and an even bleaker future for many of us here in the USA. (click HERE to see how the Rich / Corporations will BENEFIT from tough US times - NOTE: link may be set up at a later date)

    In the past, an economic stimulus plan was implemented to "jump Start" the economy by "giving" taxpayers about fifteen hundred dollars so that the economy could be stimulated through increased spending… This plan failed because most Middle Class Americans did the prudent thing and paid down their debts… The net effect of this program was that basically money was transferred once again to the wealthy (the debt holders). Conspiracy theorists at the time saw this as a potential problem of the economic stimulus plan and hindsight, apparently proves their concerns as being correct… i.e. The program ultimately benefited the wealthy (again middle class $$ propping up the already wealthy).

    Another program that was tried in the past was the so called "trickle down" economy...Basically, under this plan, the rich / corporations were given large tax breaks etc..with the assumption that they would build infrastructure and create jobs....However, the often seen end result of this failure was that the rich took their savings and bought luxury items (Yachts, Ferrari's, etc) and homes in other countries all the while doing essentially nothing for the average Middle Class American...Just another case of the average Middle Class American putting into the system and not reaping any of the rewards because of skewed politics, programs, special interest groups and laws.

    Middle-class America's proposal is that many, if not all debts incurred by middle-class Americans be forgiven… Essentially, simply erased from the books. (SPECIAL NOTE: the debt forgiveness date is a date that his already passed….This discourages people or companies from arbitrarily amassing large NEW debts and hoping that they will be forgiven.... Debts incurred AFTER the debt forgiveness date will NOT be forgiven under this program AND THAT date has ALREADY PASSED before the the writing of the this proposal.....Bottom line: do NOT amass new debts with the assumption that it will be forgiven, THAT would not be fair in light that this new proposal is "out of the bag" ......Middle Class America is a fair organization and we believe that we have to hold ourselves to a higher standard and cannot condone premeditated new reckless spending with the assumption that it would be forgiven under the Debt Forgiveness Plan.

    This Debt Forgiveness program would serve to benefit America and the economy in a number of different ways....the main two being:

    1) It would stimulate the economy in a big way..... Imagine for a moment if you were free from your current debts… You would now be able to do things you never dreamed before being possible... you may be able to make general repairs to your home, make an addition to you house, repair you vehicles, you may be able to buy things or use services that you would not have otherwise been able to afford, you could take a vacation etc...…

    This buying and repairing represents a demand for goods and services, thus stimulating the economy (yes, ultimately, rich individuals and corporations would also benefit from the program since they are effectively manufacturers and providers of hard goods, but wouldn't it be nice for you to at least be able to experience some goods and services that you may not have otherwise had the ability to buy or use...sure it would!...AND the economy and the USA would benefit as well (remember greater demand for jobs means more opportunities for employment (unless they try to outsource that but we will fight that)...A true win-win situation. (Click HERE to learn more about "Splash up Economics" = NOTE - link may be added at a later date).

    2) Debt Forgiveness fosters innovation and promotes small businesses / self sufficiency..... Do you have an idea for a product that you think could be patented and successfully marketed ? Would you like top start and run your own small business? Well, with the money you would be saving under the Debt Forgiveness program you would have the ability and funds to do this.

    Another positive outcome of the many new business that would emerge (or from the existing small businesses that could expand) would be reducing unemployment! Also, not only would you benefit from this on a personal level (refer to #1 above) but the country as a whole would benefit because we would again become a nation of innovators of doers and creators… Things this great country was founded upon, but fell by the wayside as the "system" and special interests took control to work against the average Middle-Class American. The rebirth of America means a better future for us!

    Advantages of debt forgiveness versus economic stimulus:

    Under the economic stimulus program in years past, many individuals were "given" monies to spend… As noted above, most prudent Middle Class individuals took these monies and paid off debts such as high interest credit cards etc.... Therefore, the program became nothing more than a program to enrich the already rich....we got the money (possibly from the taxes we already paid in OR maybe the money was just printed out of thin air)...BUT it ended up being simply transferred to the wealthy.

    Furthermore, the presumption being that the newly created monies where or may have been printed from thin air, leads to the theoretical devaluation of the dollar....thus reducing the already few dollars we Middle Class Americans have.

    Debt Forgiveness does not create new money, rather, it erases old debts . Thus, preserving the value of the dollar all while directly stimulating the economy.
    Last edited by Andrew King; 02-19-2013 at 01:29 AM.

  2. #2
    What is the basis for forgiving debts? Isn't it unfair to affect debt holders?

    Good question.

    Fist off, most middle-class people (including people like you & me) are very compassionate, thoughtful & caring individuals & we are very concerned about "fairness"...After all, you want to be treated fairly don't you?

    These traits, while obviously very good to have & a strength in many cases, also serves as the middle classes biggest downfall.

    By this I mean we often care more for other people's well-being than our own well-being - Unfortunately others have taken advantage of our good nature & compassion (Click HERE to cross reference the high cost of prescription drugs as an example - NOTE: Link may be put up at a later date).

    As an example, the two-party system (consisting of the Democratic party and Republican party respectively), are in fact special interest groups which do not look out for the needs of the Middle-Class in general..Here is why (this section is taken from our postings on "Why the 2 Party system does NOT work for the Middle Class).

    Generally, the Democratic Party represents big government & the poor (hence the need for increases in taxation or owing larger federal debts) while the Republican Party typically represents large corporations / the rich while also pushing for lower taxes on the rich.

    Given the above, let's follow a couple examples of how things "work" under the current 2 party Political System :

    Suppose Obama wants to increase government spending for low income housing in the amount of say five billion dollars. In order for him to pass his legislation he must also have votes from the opposing party (in this case, the Republicans) so he must make concessions to them.

    Now, say the Republicans will agree to go along with Obama's spending increase IF they (i.e. The Republicans) get something in return . So now they counter that in order secure their votes the Democrats will have to give their rich constituents a tax break or other tax loophole to use.

    Now, the two parties involved hash out the details & each one of them gets essentially what they want.

    But who is left holding the bill?... Basically the poor do not or cannot pay taxes because, well, they are poor...The rich typically do not pay their percentage because now they negotiated for additional loopholes and tax breaks.

    So who is left? You guessed it the working middle class is left holding the bill...We toil while the others unfairly benefit.

    Now, pretend that Mitt Romney had won the Presidency. Do you think that would be better for the Middle Class?

    Again, following how the two-party system currently works, look at the flip side of the above scenario.

    Suppose President Romney wants to pass a bill to stimulate the economy through trickle-down economics (basically giving the rich tax breaks so they will supposedly make jobs for Americans)..Thus he may propose tax cuts for the wealthy.

    Side note : It has often been said the the only thing that "trickles" down in a trickle down economy is urine when the rich and big corporations PISS on the Middle Class!

    Anyways, in order for him to pass his legislation he has to negotiate with the Democrats in order to get the necessary number of votes to pass the bill.

    The Democrats in this example, may agree to Romney's tax breaks for the wealthy, but in return for their votes the Democrats may ask for say a five billion dollar increase in government housing funds.

    So now the two parties hack out the details. And guess what?

    The poor still do not pay taxes because by definition they are poor & don't have the funds to do so and they rich still do not pay taxes because now they have new found loopholes & tax breaks!

    So who is left holding the bag? Again middle-class Americans like you & I..We work & we pay out!

    So what we can see by the above two examples. It matters not whether a Democrat or Republican is in office… The Middle Class is still not necessarily fairly represented.

    Side note: More recently (during his 2012 reelection campaign) President Obama purportedly indicated that he was for the Middle-Class.

    To any Democrat or Republican stating that they are for the Middle Class, we would counter with our example of the rapist or child molester (not that President Obama is either, but please allow us to continue with this analogy so that you can understand our points).

    Rapist Example:

    Pretend, as an example, John Doe was convicted of raping a young twenty something woman.

    Now suppose John Doe has served his time for the crime and is now out of jail and looking for a job.

    Because John Doe has a criminal record, perhaps most businesses would not hire him as an employee.. Because of this, John Doe now feels he has no alternative but to open up his own business..So with the help of family and friends (and because he loves the great outdoors), he opens a wilderness tour guide service.

    Suppose you learned, that your daughter, sister or girl friend / wife wanted to sign up for his tour guide service for an extended one-on-one tour in the wilderness… Would you feel comfortable with this?

    Molester Example:

    Now let's try a different example.

    Say, John Doe, a convicted child molester had served his time and is now out on good behavior… Would you trust him to watch after your children if you were away?

    While these examples may be extreme, the general idea is while the two political parties may now claim to help the middle-class , but should you really believe this?..Can people really change who they are or what they represent? Does the old saying "don't trust a wolf in sheep's clothing" pop into your mind?

    Democrats and Republicans do NOT look out for the Middle Class.....instead they represent the 2 arms of the same evil giant (often called the rich) to pick the pockets of the Middle Class.

    So how does all this tie-in with the debt forgiveness program?

    1) It provides a general basis for how middle-class Americans have been taken advantage of throughout the entire process of the two-party system..Can you recall when a third party has actually won a presidential race? Can you recall a time when the House or Senate were run by a third party?..I think NOT.

    So with the fact that no third party has recently won a Presidential bid, or held a majority of Congress, do you think the system has helped you or your parents or your grandparents or your great-grandparents, for that matter given the above scenarios?

    The basic fact is that throughout most if not all of America's history special interests, aided by the two-party system, has given middle-class Americans false sense of security and hope thinking that each of these organizations would help them when in fact, neither really do.They merely allow many middle-class Americans to feel that they are making a choice when in fact, neither choice is truly optimal.

    With that, we give you Thalidomide and Mesothelioma.

    What does that have to do with debt forgiveness?

    Well, like so many things Thalidomide and Asbestos were thought to be great products… They each served a seemingly useful and beneficial purpose at the time. However, later it was found that these very products in fact caused far worse problems than they actually helped to solve.

    With this discovery, many large funds were set up to reimburse people who are negatively affected by the aforementioned products.

    It is in a similar vein that middle-class America would argue for its debt forgiveness program.

    The results of the two-party political system have in no way helped middle-class Americans. Moreover, they arguably systematically hindered & oppressed the middle-class because of special interest backings.

    With this , we feel that debt forgiveness for middle-class Americans would be the appropriate solution for past wrongs.

    2) Hard Reset - This theory for debt forgiveness hinges around the typical solution for computer freeze ups and cell phone malfunctions.

    What does this mean?

    Sometimes when computer issues and cell phone issues crop up, & no other commands seem to cause them to work properly again, it is sometimes necessary to do a hard reboot by turning off the machine, pulling the batteries & letting them start back up again with a fresh reboot.

    The same theory can also be applied to the world economy today… We've all heard about the financial crisis of Greece, the recession in Europe & the general economic chaos & unemployment in America (often as a result of special interests and the wealthy manipulating the system for their benefit).

    It has been proposed that debt forgiveness simply be a universal and global process whereby everybody wakes up on Monday morning and everybody's debt had been forgiven. a simple hard reset as it were..we can all learn from past mistakes & this gives us & the world a fresh new start.

    The hard reset idea can be applied simply to the US or the world. If everybody would agree BUT we can make it happen in USA if we unite.

    We should not cry over spilled milk / past wrongs BUT we can get certainly get reparations for past wrongs.

    How would this be possible?

    Because middle-class America consists of approximately 80% of the population, we can get what we want, what we deserve for our hard work, and we can get back what we have been systematically cheated from. If we as middle Class Americans unite, take back and rebuild America.

    Middle Class America is the organization whose sole purpose is to do that & we plan on running a candidate for President in 2016 to do so.

    We have a lot to do between now and 2016 so we greatly appreciate your input, questions, contributions (both in terms of adding material / content to this forum as well as financial support in terms of membership / donations).

    Help us go viral, help us spread the word....The Middle Class is here to stay and with your help.. We will win.

  3. #3
    Debt forgiveness is a fantastic thing for most people, as it means less than the whole of a debt has been paid though the debt has been satisfied. However, it’s considered taxable income and the lapse of a debt forgiveness tax break for foreclosures or short sales of homes is set to bite some taxpayers. Article source: Debt forgiveness.

  4. #4
    Debt forgiveness is a fantastic thing for most people, as it means less than the whole of a debt has been paid though the debt has been satisfied. However, it’s considered taxable income and the lapse of a debt forgiveness tax break for foreclosures or short sales of homes is set to bite some taxpayers. Also, millions of people breathe sighs of relief every year when granted debt forgiveness.

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