Zero Percent Home Mortgage

The Proposal:

The Federal Government will buy up and or finance 4 million home mortgages each year and make them Zero percent mortgages until 100% of Unites States home owners regardless of income has a first mortgage at zero percent up to $250,000. Adjusted for inflation annually. To start with a lottery first of those with incomes under $50,000 and escalating upwards annually.

This is purely a policy of self interested investment in the counrty by the country for the people of the country.

How it works:

4 Million 250,000 dollar mortgage equals a 1 Trillion dollar investment.

The zero interest payback will be $33,600,000,000
Those mortgages no longer having a mortgage interest deduction pays back $6,720,000,00
4 million homeowners freed from paying an average $700 a month in interest creates spending in the real economy of $33,000,000,000, and a multiplies spending effect of about $134,000,000,000.
This increases GDP by about 1% and in local communities not international finance and creates 1 Million three hundred and forty four thousand new jobs.
The new jobs each pay Federal income taxes of about $5000 each.
The new jobs create perhaps 134,000 new small businesses each of which then perhaps pays $15,000 in federal taxes.
All the new employment reduces welfare rolls by about half the jobs created taking about 700,000 of the welfare and food stamp rolls.
The 1% increase in GDP extends to all the other non banking sectors and creates even more jobs and business growth and taxed at 15% would equal another 22 Billion for the federal government.

And the trillion dollar buy up buys up existing mortgages from banks for now giving those banks money to invest in "business" and gets them out of the problem of having to deal with millions of potentially adverse loan transactions.

So 1 Trillion invested

Return is:

Principal Payback 33 Billion or 3.3%
Interest deduction 6.72 Billion or .672%
New jobs 6,72 Billion or .672%
New Business 2.01 Billion or .021%
Boost GDP 1% 22.5 Billion or 2.2%
Reduce Welfare 1.2 Billion or .12%

Return Year 1 return to the people 7% or 70 Billion Dollars

If we do a progression of economic impact doing this every year for 20 years somewhere around year 12-15 this program actually pays for itself. Especially considering that each years progressive economic growth created will continue building and expanding on itself.

Easy math, very standard macro economic textbook assumptions.

Lets get banks out of the business of destroying economic activity and get us the people into creating our own vision of a good society.