Note: Sample below may appear distorted but all corresponding word document files contain proper formattingExcerpt from essay:
2 trillion in 2006 revealing that more than 75% of the U.S. households have their homes. One of the factors leading to the growth of real estate during the period was the inflow of capital into the U.S., which assisted in bringing in cheap dollars into the U.S. economy. With the growth of real estates in the U.S., many foreign companies, foreign financial institutions, foreign individuals, equity funds and foreign governments have taken advantages to invest in the U.S. economy. Typically, robust health of commercial and residential real estate is fundamental to the economic growth. One of the fundamental impacts of the inflow of dollars in the U.S. real estate is the downward pressure on the interest rates. With the absence of foreign capital, the interest rates will be four times higher than the current levels, and such increase will put a rise in the mortgage rates, which will result in depressing the homes sales activity as well as depressing the real estate revenue.
Nearly $1 trillion will be exchanged in the transactions by allowing foreign individuals to buy homes in the U.S., and the transactions will create jobs for million of Americans, and the overall results will lead to the hundred of billions of overall economic activity yearly.
Essentially, the housing sector accounts for the 15% of the U.S. annual gross domestic product (GDP). The significant contribution of housing business to the U.S. economy is the low and stable interest rates, and the inflow of capital in the economy has helped in stabilizing the interest rates. Economic theory could be used to support the proposal. The theory demand and supply states that increase in supply over demand leads to the decrease in price. Excess of housing supply over the demand of housing has led to the collapse of housing prices. If the U.S. government could allow foreign individuals to push up the demand of housing, there would be stability in the housing market.
The proposal provides the economic benefits of "Buy a House, Get a Green Card." One of the benefits identified is that there would be inflow of capital into the U.S. economy, which would assist in the creation of jobs for millions of Americans. Although, there are criticisms from some commentators that the proposal may allow fraudulent people to secure the U.S. green cards, however, with proper scrutiny of the applicants, the U.S. government could use the proposal to stabilize the whole economy.
Letter to the Editor
42 Leclaire Avenue,
18 March 2012.
Buy a House, Get a Green Card
I am writing you this letter to bring to your attention on the strategy that the U.S. government could use to address the mortgage crisis, which is the root of the present U.S. financial crisis. I suggest that the U.S. government should pass a bill into law to allow foreign individual to buy a house worth $500,000 and in an exchange, the government should issue a Green Card to the person. I believe that the recommendation will address the present economic crisis. The U.S. is the dream of billion of people around the world. Yearly, between 30 million and 40 million eligible applicants apply for the green card lottery. If the government could allow wealth individuals around the world to buy out the excess housing in the United States, the country would benefit the capital inflow of more than $1 trillion, and the transaction would address the present economic crisis and create million of jobs for Americans.
Evidence has revealed that the fundamental cause of the present financial crisis is the collapse of the housing prices. Presently, there are approximately 2.4 million excess houses in the United States leading to the loss of $945 billion of financial asset. If the government allows foreign wealth individual to buy up the excess housing, the U.S. could reap up to $1 trillion in the transaction. The U.S. government could derive several benefits from this transaction.
First, the transaction would provide jobs for million of Americans. Data from Department of Commerce reveals that U.S. has benefited from the total of $1.7 trillion inflow of foreign capital in the last 10 years and the result has led to the creation of between 5 and 6 million jobs. Since the collapse of housing prices, firms across the countries have embarked on the massive layoff leading to more than 12.8 million people being unemployed. If the government allows foreign individual to buy up the excess houses, the capital inflow would generate million of jobs that would drastically reduce the overall number of unemployed people in the United States.
More importantly, the transaction would lead to the decline of interest rates. Increase in the interest rates is the major cause of the collapse of the housing prices. If the government could allow foreigners to invest in the country real estates, there would be a decline in the interest rates and the transaction would stabilize the housing crisis in the United States.
Based on the benefits that the country would derive from the "Buy a House, Get a Green Card" initiative, I suggest that the letter should be published to the public to enhance greater understanding of the government on the strategy to revive the economy.
A writer of letter has a Master degree in Economics, and has long years of experience as an economic and financial analyst. The author has also submitted several financial and economic articles that focus on the method to address problems in different sectors of the economy. The writer has also provided several investment advices for investors across the United States. The expert advices have assisted several investors across the United States to identify the companies that could increase their wealth.
Bianco, K.M.The Subprime Lending Crisis: Causes and Effects of the Mortgage Meltdown. Federal Banking Law Report.2008.
Caballero, R.J. & Kurlat, P. The "Surprising" Origin and Nature of Financial Crises: A Macroeconomic Policy Proposal. Working paper (Massachusetts Institute of Technology. Dept. Of Economics. No. 09-24.2009
Crotty, J. & Epstein, G. . Proposals for Effectively Regulating the U.S. Financial System to Avoid Yet Another Meltdown. University of Massachusetts -- Amherst. Economics Department Working Paper Series.2008
Hinojosa-Ojeda, R. the
Economic Benefits of Comprehensive Immigration Reform. Cato Journal. Vol. 32, No. 1: 175-199. 2012.
Jackson, J.K. Foreign Direct Investment in the United States: An Economic Analysis. Congressional Research Service.2011.
Lefrak, R. S, Shillings, a.G. Immigrants Can Help Fix the Housing Bubble. The Wall Street Journal. March 17, 2009.
Payne, D. And Yu, F. Foreign Direct Investment in the United States. U.S. Department of Commerce. Economics and Statistics Administration. United States.…[continue]
"Buy A House Get A" (2012, March 18) Retrieved October 25, 2016, from http://www.paperdue.com/essay/buy-a-house-get-55134
"Buy A House Get A" 18 March 2012. Web.25 October. 2016. <http://www.paperdue.com/essay/buy-a-house-get-55134>
"Buy A House Get A", 18 March 2012, Accessed.25 October. 2016, http://www.paperdue.com/essay/buy-a-house-get-55134
Renting apartment an option buying a house. I opinion sway readers buying a home renting apartment. Cite work pages 1000 words . Renting vs. buying The events which have marked the real estate market throughout the past recent years have generated among the strongest impacts ever. In this order of ideas, the internationalized financial crisis commenced within the United States real estate sector soon spread out through all global regions. At the
Man of the Crowd By Edgar Allan Poe (1840) The story significantly depicts not only the preoccupation of the 17th hundred London issues and a trend brought by the progressive industrialization of time, but speaks so much relevance in our modern time as well. The epigraph which sums up the very essence of the story explains the dynamic of a human being too busy to mingle with the crowd for fear of
difficult economic timers, buying a house is a risky decision. Purchasing a home, particularly for the first time, has always been so, but uncertain financial periods -- the downturn followed by a possible upturn -- make it all the harder. Few prospective buyers are aware of the excruciating decisions that devolve around the purchase, nor are they aware of the economic minutiae involved. Investing background economic principles may make
Consumer Buying Decision Consumer purchase decision may appear random at times as a person goes to the market to buy groceries. But whether it is a low involvement product (LIP) like a jar of mayonnaise or a high involvement product (HIP) like a house, the consumer will usually go through five stages of purchase decision which are less pronounced in the case of LIP than it would for a HIP. A low
Sociology: Changing Societies in a Diverse World (Fourth Edition) George J. Bryjak & Michael P. Soroka Chapter One Summary of Key Concepts Sociology is the field of study which seeks to "describe, explain, and predict human social patterns" from a scientific perspective. And though Sociology is part of the social sciences (such as psychology and anthropology), it is quite set apart from the other disciplines in social science; that is because it emphasizes
house is the symbol in the House of Mango Street. The title of the novel A House on mango Street, by Sandra Cisneros, is both straightforward and deceptive. The name of the street suggests a quiet street in a nice neighborhood, a street lined with trees in a lazy afternoon. As soon as the first chapter begins, the reader will find out that the street and therefore the house in
Economic Principles and Purchasing a House Economics Principles and Purchasing a House This essay discusses principles of economics as they apply to making decisions about purchasing a home. The essay also reviews the decision making process and how it is affected by marginal benefits and marginal costs. The health of the economy and also international trade are factors to think about too, along with looking at conditions which could have lead to