Power to the People

When a company has difficulties it takes creative thinking by its managers to cut costs and increase productivity to ensure survivorship. Running a country is no different. That is why we need to think about radical policies at the national level to help the western world out of its predicament. To me one solution that has not been thought of is to reinvigorate the consumer i.e general public. A radical way to achieve this would be, instead of writing down national debt, to write down private individuals debt. If a nation wanted a direct policy to increase consumer power they could invest money in writing off a percentage of consumer debt. Governments would repay lenders, which are predominately banks, a percentage of private consumer debt. This would overnight effect the mentality of individual consumers who would immediately become wealthy. Austerity taxes  could remain for a period, these would be less of an issue on individuals, who have reduced debt levels, and would allow governments to reclaim this investment in realistic time frame. From a philosophical and sociological standpoint some may argue that this would be incorrect. However given a world where the average tax payer is paying for mistakes of their own doing as well as companies, banks and governments mistakes, I believe it is actually a positive action from a sociological and philosophical level. Society would feel less aggrieved with the financial system and the institutions that are its constituents. Then appropriate controls could be placed to prevent the same over-extension of credit ever taking place again. I have even thought of how to implement this in a nation like the UK. Yes this is radical, yes it is a solution that could contain some negative behavioral effects but what it amounts to is putting faith and responsibility back to ordinary people. If governments can trust their public by giving them this responsibility to act in the new world in a disciplined manner, I am sure the public would show the politicians that trusting the people is far more efficient than trusting other politicians and bankers. Power to the people is not activism but a road to a happier and prosperous society.