If the economy is in trouble because of credit, people spending more than they make, how is it good to loan them more?

If I purchased my home by getting a loan, then purchased a car by getting a loan, then remodeled my home by getting another loan, none of which I can make the payments on, how does it assist me to make me another loan to make payments on the loans I already can't afford?

Wouldn't it make sense, I won't say more because the above doesn't make any to me, to sell off, regroup, live with parents or family or friends, take the bus or bike or walk, to get out from under that debt?

Isn't what the government is proposing, that banks start making loans again, the opposite of what we really need?

Does America need credit or jobs that will pay a wage sufficient to support its citizens?

I'm not talking the 90.00 an hour the average auto worker costs the company (benefits, insurance, retirement, union fees, etc.) since they only see about 30.00 an hour of that on paychecks, using very round numbers, but maybe that 30.00 an hour and that's it.

Maybe for the next few years, maybe forever, if a person worked for a wage that could support them but had no benefits post employment, maybe then the economy would turn around.

Of course it would be unfair to people who had pensions and such, but if your choice is to work for a good wage with no post employment benefits or not to work at all, doesn't it make sense to work?

I seem to have digressed.

How is giving more credit going to help?

IF we took that 700 billion and divided it up among every citizen in the USA, all 300 million of them, each person would receive 23 million dollars.

Do you suppose a few of us could pay all our debts with that?

Why not do that?

Or am I completely off?