Recession and Bush

Haven’t any of the economists noticed that the lower interest rates are not only not fueling the economy, but that there is a general slowing of goods being purchased since the lower interest rates have gone into effect?

Hasn’t it occurred to them that perhaps the lower interest rates are having a negative effect on the purchasing power of many people who depend on the return of the interest from their invested capital?

If the lower interest rates were intended to stimulate home buying, that is certainly not working either. If the government wishes to make it easier for first-time home buyers to purchase a home, why not make a special concession for just this group, such as a double interest deduction for them for the first two years? If they purchased a resale, this would allow those who sell their homes to them to purchase another home that has been sitting on the market and could hopefully put into motion a favorable domino effect. If they choose to purchase a new home, then this would stimulate construction. Interest rates should climb so people receiving interest from money invested will have more disposable income and the government would receive more in taxes from this added income.

MARGARET Z. SCHWARTZ, Palm Desert