When Lowering Interest Rates No Longer Works - NetGain Presents 8 Alternatives
While lowering interest rates has been the historical method of choice for jump-starting the economy, there are scenarios where this approach does not produce the desired result. In light of this fact, NetGainRealEstate.com has released a report presenting 8 alternative action plans for stimulating the economy.
Mountain View, CA (PRWEB) November 7, 2007 -- NetGainRealEstate.com, the leading Internet provider of independent, value-added income property analysis, has released a report detailing 8 economic alternatives to lowering interest rates.
Lowering interest rates doesn't always bring an immediate result. Sometimes it takes a little longer. Recently, Japan reduced their interest rates to almost zero, and it took several years for their businesses to begin borrowing, expanding, and hiring. This was followed with consumer confidence increasing, and consumers beginning to spend their money.
NetGain's report addresses the scenario where rates are lowered and, after a reasonable period of time, businesses don't expand, employment doesn't increase, consumers' confidence doesn't go up, and consumers don't spend more money.
The aggregate of U.S. individual and corporate tax dollar numbers, both from the collection and the spending side, is huge (over $5 trillion). When you combine those numbers with the federal government's ability to pass legislation, the programs that are available to motivate consumer spending are limited only by the creativeness of the minds in the federal government. NetGain presents action plans that are examples of possible strategies that have a high probability of stimulating the economy, and they are intended to be partisan-neutral. Following is an outline of 8 economic options:
1. Reduce Corporate Taxes
2. Reduce Individual Income Taxes
3. Reduce the Capital Gains Tax Rate and the Length of the Required Holding Period
4. Increase Deductions on the Real Estate Depreciation Schedules
5. Initiate the Privatization of Social Security
6. Tax Incentives for Targeted Groups
7. Create Federal Work Projects
8. Negotiate More Favored Trade Agreements for American Products
To access the full report on economic alternatives to lowering interest rates, go to http://www.netgainrealestate.com.
Net Gain Real Estate is a wholly owned subsidiary of NetGainR.E.Inc providing commercial real estate investment tools and income property analysis. In addition to capitalization rate recommendations, bi-monthly essays, a comprehensive due diligence checklist, and an extensive question and answer section, investors may also find a composite index of REIT data at www.netgainrealestate.com.
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