Increase. Aggregate Demand Without Increasing The Federal Deficit

Business are not hiring people because of lack of demand. To increase aggregate demand we could lower taxes. No! Lowering taxes will not increase the middle class disposable income enough and it could increase the deficit. We could give make work jobs to people. No! Jobs are better than paying unemployment insurance but other citizens are paying the bill. The best way to increase the disposable income of millions of middle class people is restructure their mortgages with a mortgage with new terms. The loan should start with a low interest rate, 2.75%, like a 3//1 ARM. Each year the interest rate should increase .25 percent and cap out at 5% like a 30 yr. fixed rate loan. Qualification would be at 5% Under water mortgages should have their principal reduced monthly with no cost to taxpayers