Saturday, August 20, 2011

Soapbox Economy

It's time for me to get up on my soapbox again. This time about the US economy. The problem we are experiencing is an issue with our culture. We have a debt driven society. It's crazy, starting at the very top, we spend more than we earn and acquire debt while only paying our minimum payments. Just typing that sentence made me upset. And the fix to our societal problems is incredibly fundamental, but we have politicians wading through the problem and there is no way they can get any benefits for their special interests if they take simple problems and give them simple answers... instead, they take a simple problem, i.e. spending less than we earn, and make committees that make laws, and those committees have committees that oversee them, and then those committees have joint committees, and representatives, and branches, and by the time the solution gets an answer, it's a 500 page bill.

So here is what the problem looks like:

http://www.usdebtclock.org/#

This is an extremely interesting website... make sure you click the link.

Found this quote the other day... it makes it easier to talk about all this debt stuff.

‎"If the US Government were a family, they would be making $58,000 a year, they spend $75,000 a year, and are $327,000 in credit card debt. They are currently proposing BIG spending cuts to reduce their spending to $72,000 a year. These are the actual proportions of the federal budget & debt, reduced to a level that we can understand." - Dave Ramsey

How to solve our problem... Make our spending less than $58,000. It needs to be done regardless of what  we cut, it needs to be done. Take our men out of the middle east, cut back medicare funding, cut back social security, cut back unemployment benefits, and lastly, restructure taxation and make everyone pay more... not the rich, not the poor- everyone! Saying these things does not make me a popular person, but it's real. Having all these luxuries is what is causing our 'credit card debt' to increase at astronomical rates while we sit back and spend money on 'eating out' and 'new toys.' (eating out and new toys is an analogy to making everyone happy). We cannot make everyone happy if we intend to stay a country for much longer. When you as a consumer default on your debt purchases you will have your toys taken away by Visa, Mastercard or the Bank- repossessed. When we, as a country, default on our debt purchases, China will take our country.

We will lose it.

So after we get our spending to be less than our revenue we need to take a snowball approach to our debt and get it down to zero. Then we will have to live within our means as a country... we cannot have everything without having the money to pay for it. We do not have a magic money machine that prints without consequence. We do print, we print a lot. But there are huge consequences.

So... I am stepping off the soapbox now. Spend less than we make, this is the solution. Not complicated. People of this country need to then follow suit and spend less than they make. And then those people need to teach their children these very simple practices while also still applying them to their lives.

That's all I have tonight... Enjoy your week!

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