The current lack of economic activity in America is primarily due to lack of consumer demand and spending. Consumer spending has been restricted because of high personal and mortgage debt burdens carried by American households and small businesses. Unless these debt burdens are resolved quickly, the economy will decline and more jobs will be lost and small businesses will close. We have become, to some extent, a "cash only" economy.
To resolve the slow down, I propose that judges be given the authority by the federal government to resolve unsecured and mortgage debts outside of the bankruptcy laws. If judges are allowed to write down mortgage debts and dismiss unsecured credit card debts, consumers and small businesses can begin using cash to buy products and help restart the economy.