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.
Conclusion
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,
Chicago,
18 March 2012.
Chicago Tribune,
Chicago.
Buy a House, Get a Green Card
Dear Editor,
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...
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