I don’t pretend to know much about the inner workings of our economy but there are some obvious and rather glaring problems that have probably been the cause of our current situation. The one I see first is the way we use credit cards indiscriminately. Our country is a country of debt. Saving is not encouraged or practiced, even though saving is the way out of debt and into the clear open skies of prosperity. I am not saying that one cannot make money on borrowed money. But our indiscriminate use of credit cards has reached new heights. And the majority of our country is in serious debt. This may be why even a small downturn in our overall societal economy puts so many in dire danger.
This is what we see in the public. But this same applies to our government. As of September 2008, the total U.S. federal debt was approximately $9.7 trillion, about $31,700 per capita (that is, per U.S. resident). To understand the federal debt more, read HERE. This is like our country’s credit card bill. For as long as I can remember, there has not been anyone in office who seems to care about the federal debt and budget. Bush especially has lowered taxes and increased spending. That is like you or I deciding to work less hours each week and use those hours to go on a spending spree. So we get to see that in both cases the result will be financial collapse. The problem with our government is that they can just print up more money.
A good friend mentioned to me recently that he read that most of the gold that our country has in Fort Knox has been sold to companies and investors, and is not planned to be returned. Again, we see a very bad sign for our country.
The proposed economic bailout is just another credit card band-aid. The government intends to take on more debt to bail out a bunch of companies who have not been fiscally responsible. There is also a huge element of greed working in the background of these companies that was demonstrated when they sold bad loans to people who could not afford them. Greed is one of the main forms of poverty consciousness. And actions based upon greed always create more poverty in the long run. This economic bailout is just another loan, adding to the problem. It is not fiscally responsible. Who do you think is going to pay for that $700 billion? Where is that money coming from?
If companies should have to fall because they were greedy and irresponsible is it fair that you and I should bail them out? I see it as very healthy to have many of these shady dealers fall. I think that this current economic situation is very healthy in that it will cause a pruning effect on some of the dead weight in our country. Perhaps it will help get people off of the lending/credit card disease that is so prevalent. Maybe some of us will have to cut back, maybe someone’s kid won’t get a college loan, maybe some companies will fall. But in the end, it could restore a true sense of value to millions of people in our country. And that in itself is priceless.