Friday, April 8, 2011



The American debt relief crisis cannot be ignored at the federal or state level. Current issues of individual sates in crisis is making the whole country evaluate the situation of American economics seriously. The recent protests by teachers unions in Wisconsin are just one example of the recent stir amongst citizens looking for someone to blame for Americans needing debt relief.  There are reported to be more than 2 million Americans expected to file for bankruptcy this year, and this is just those in the most dire straits being represented. Reality is that the american debt relief is a growing crisis and rising need amongst our citizens.

On one side of the debate about the crisis and need for  American debt relief, are the problems on the consumer side of things. The modern consumer society is accused publicly of overt materialism, decadence, impulse buying, and a general needing for immediate gratification in their spending habits. Basically it is blamed on the tendency of Americans to spend excessively more than they are able to earn. This also is aided by the credit card companies lending to these extreme tendencies with high limit and high interest cards, these feeding the already out of control consumer debt accumulation.

On the other side of the debate are the problems on the govermental side of things. This includes a variety of issues including banking deregulation, erosion of federal regulations, consumer usury laws, and current marketing politices. The government is blamed for creating an economy that is booming mostly at the expense of the average American's financial well being. Many laws have been written in favor of a free market type logic, but are actually exclusive in their aid to the positions of credit card companies making worse an absolutely bad situation. These actions are evident within the Bankruptcy Reform Act and other recent legislations, such having dramatic implications upon the national debt and on American families in general.

Blame can be thrown in one direction or the other easily, but this does not analyze the root of the problem. Taking action on the economic problems facing American workers must be put into place before it is too late to be effective. The need by most Americans for debt relief is not due to luxury spending and outrageous extravigance, in fact most have racked up high credit card limits to buy necessities. The government should not dismiss debt that is being used for groceries, gas, and the basic needs of any household. Who is to blame is no longer important in the American debt relief crisis, but taking actions that provide solutions in the future are becoming essential now.

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