Interest Rates

by Terry Plotkin

 

Here is my prescription for getting the economy moving, and you not even need an obstructionist Republican congress to approve it. The Federal Reserve sets interest rates for the banks that they loan money. Right now that interest rate is very close to zero. Why not have the Fed offer the same rate to students with loans and cut the lenders out of the middle. Simple enough. Cut student interest rates to near zero and watch students have enough money to move out into the world and make things happen.  I know plenty of them who could use the help: College graduates work for $10 dollars an hour in coffee shops, others stocking shelves and cashiering at the health food store, still others doing one on one work with young people who have disabilities. All with college loans, all with low paying jobs, all living with their parents, all stifled. Throw them a lifeline and let them really live (and help the economy to boot). When we are done with them, do the same thing with mortgages that are in trouble. Let the Federal Reserve set interest rates so that the mortgages become more affordable and housing prices stabilize. If the powers that be only worried about these people the way they worry about the stock market things would change for the better fast. Would the banks and Wall Street like it? I couldn’t care less.

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