Joe Six-Pack knows how to fix the economy

I'm currently taking an economics course in my MBA program and working on a paper/presentation that discusses the current recession: how did it happen, what were the indicators, and how to we fix it?  I was thinking if we get that last question right, maybe I'll get a seat on the President's Cabinet.  Ya think?  I better check and make sure I've disclosed all my earnings and go ahead and pay those back taxes.  :)

Anyway, I was reading an article about what some "regular people" (you and me) think we should do about the economy and here's one that I haven't heard before, but I thought was pretty darn interesting:

"If banks need billions or trillions and Americans are struggling financially, especially to pay debts, then is it not possible to kill two birds with one stone? Give the banks $ through Americans by paying on their debt, at least the credit card debt. I saw it reported that "Americans have more than $900 billion collectively in credit card debt." Only 900b? Heck, pay it all off. The govt is spending trillions on things the average American won't even experience, or perceive to. Instead of giving money directly to banks put that towards American's credit card debt. Less debt = more money on hand; money that people will spend! And we know that the American's with credit debt will spend, that should be obvious :)"