Friday, September 4, 2009

US government's money handling

I along with many other Americans believe that the powers that be in the current federal government are leading us into the worst financial situation this country has ever faced. Actually this stuation has been in the works for many many years. Unfortunately at this very point in time, the leaders are choosing to ignore the fact that we cannot even finance the bloat that is the government now and are attempting to fit in the greatest of expenses ever considered, national health care. I want to make clear that it is a great idea, and someday hopefully we will see it come to pass. But it just will not work now for numerous reasons.
By the way, the reason I started thinking about all of this is a letter I got from Social Security. The statement that you get listing your future benefits. On the front page 2nd column is a section called About Social Securities future. In essence it tells us that in 2017 they will be spending more than they take in and in 2041 the trust fund will be gone. Now we have been hearing about this for a long time, so much so that people in general just accept it. That we are so used to the idea of this fund failing is disturbing.
Now think about what the government has done so far this year. They have created a program called TARP, they have allegedly bailed out the auto industry, and they have completed the cash for clunkers deal. So we are closing in on the creation of a trillion dollars which has been used to bail out financial institutions that should have been allowed to fail, the money used to save the account holders and move them to well run institutions. It has been used to bail out the US auto industry which, as bad as it hurts to say it, should have been allowed to sink in their mismanagement as well. That is a large part of the very foundation of our competitive capitalism system, if I make bad business decisions and continue to do so, my business will fail and a more competitive, better managed and strong company will take its place. Finally that still did not appear to be enough, so we had the cash for clunkers, which I have blogged about before. All the while not requiring any of the jobs lost to overseas contractors to be brought back. Now that some of the number are coming back it looks like we did help the economy, in Korea. Now lets see how the next years worth of auto sales look. I think in the future when we look back on these times, it will be apparent that we would have been much better off had we done nothing at all, than what we are currently doing. The question now is, what will they come up with next.....
Now lets think about social security again. This is a program that a much greater percentage of the American people depend on than any of what I mentioned so far. So even stepping into the financial mentality of the law makers of the moment, why is it that we bailed out all these other companies, and yet I get a written threat in the mail that just before I am to retire, there will be none of the money I have put into this program for my entire life left for me. But what a relief, I will still be able to buy a Dodge/Ford/Chevy since we saved those companies. I do want to clarify, I in no way condone or support the creation of money for any reason, especially when it is needed do to the innate inability of our government to manage a program that we are forced to participate in. The people of this country need to stop asking what the government can do for me today, and start doing the right thing themselves by working hard and earning their own way. Then we need to hold accountable and start questioning our leaders on issues such as this and expect and demand resolutions to these problems not in years, but in days and a few months. If we do not, we will be the greatest has been story in man's history.

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