I don’t comment on politics very much. I’m not associated with one side or the other.
The COVID19 crisis. The government shut us all down and then eased the sting by giving us big unemployment checks and forgivable loans for businesses. Aren’t they so nice?
I wouldn’t want to be a politician in this case – it’s a lose-lose scenario. I’m not saying it was easy. But let me give you another way to look at it.
The money they gave out, an astonishing 2.5 trillion and counting, not to mention the tax receipt losses at the federal and state level, didn’t come from them. It came from us. More specifically, it will come from your kids.
Let’s say the parents were having a rough time financially due to the crisis, and politicians walked into schoolrooms and passed the hat around, forcing kids to give IOU’s to them. They then took the money they raised and gave it out to the parents.
That’s what happened.
The government can not give out to some of us what they do not confiscate from some of us. Politicians are not saviors or benevolent caretakers. They are switches that operate in a game of who pays and who gets and when and why.
The results? So far we are 25ish trillion (with a T!) in debt on the federal level, plus all the state debt. They are not doing a very good job.
What do you think?
They suck at business, always have. I am sure their is a more politically correct or professional way to say it but neither would be more accurate.
Well said, they have no clue and most of them never signed a front side of a paycheck.
Thats exactly right. Our country will be bankrupt soon
I agree Larry! The D’s give everything away & the R’s whine an attitude of defeat. Lucky for us, with all the rioting, Mexico is willing to pay for the wall!
Absolutely agree. It seems our politicians have no concept of how to balance a budget. Tough decisions have to be made. We are doing a terrible disservice to our children and future generations. Sadly the $25,000,0000,000,000 accumulated doesn’t even cover all of the future obligations.
Yes that is right – 12 0’s after the 25. Works out to $83,000 for every man, woman and child in our country. That is over $330,000 for a family of four. And growing!
Moral of the story is, we need to stop relying on the federal government as a savior and provider. As Americans we have this very self entitled attitude as if we are completely self-sufficient. But when the crap hits the fan, everybody runs back to the tit. I really don’t know what the solution is, but I feel like everything that has happened in the past three months has redefined and reassured me of why being an entrepreneur is so important. Several times in the past I have had many different reasons why I chose to be an entrepreneur, but the strongest reason that I keep coming back to is “create opportunity.” I’m not going to wait for my local or federal government to create opportunities for my life. I have the ability to do that without their help.
A second note: interest rates are very low presently. An increase of only 1% equates to added interest expenses of $250,000,000,000/year. What if rates increase by 2% – or more? That money has to come from somewhere – will we cut back on programs – probably not. I really wish there were something that we can do. Maybe time for a convention of states for a Balanced Budget amendment – but good luck finding 37 states to line up for that.
This is so to the point. The safety net provided has a price that we will have to pay back in the future. As Larry indicated, the loan will likely be paid by our children since we could not possibly pay it all back in our time. We will have to be better at growing our business to ensure we have enough left over after paying our debt to enjoy our life…..
I agree, they are being reckless in the name of compassion. This has to stop or we will be the next Greece.
Agreed. Very well said. The problem doesn’t lie completely with the government though when too many people think they deserve or even demand the handouts but they aren’t willing to help carry the load. We all have a part to play to make this country sustainable and I think it would be possible if we all were willing to do our part.
The one law that needs urgent passing is the one where the federal government must also have a balanced budget. In my humble opinion, this is an urgent matter and one that seems ignored by many and the media.
Well said Larry – the problem is kids have been indoctrinated for 50 years to think that the government is there to help them and politicians need to be doing something to “help” people. Also, the media has turned politicians into stars – usually on the left side of the spectrum. The opposition is formidable and we need to stand up with facts and common sense to prevail! Love the blog.
I totally agree with you Larry, I am very worried for our children and what they are expected to repay. I have come upon a quote from Margaret Thatcher that seems to some it up as well “The Problem with Socialism is that you eventually run out of other people’s money”
Larry – I could not agree more! My question to you and my close friends – how can we start making a change to our government and society? This “can” just gets kicked further down the road and at some point…it will explode.
There is one thought that is missing here. Money is created by the government. It is a symbol of value. It is not real in any physical sense. It is only an idea.
As such it is our ideas about money — as a country — that are limiting us. According to some theories about money (and they are all just theories) the government can “make” as much money as it needs to. We have to have mechanisms to prevent inflation. Those could be taxes, interest rates or other ways the money supply gets controlled. Like controlling water flow.
I know many business people may not like the idea of the government controlling the money and think that that the market will just take care of it, but structurally that is not possible. The market does need an open, fair and consistent field in which to play, but to think that government cannot or should not play a vital role in the financial health of our country and our world, is being blind to reality.
We need responsive, intelligent, stable government that is willing to learn, admit mistakes and do better. As long as we keep saying that government can never do anything right – guess what? We will keep getting government that doesn’t do much right.
So, perhaps, instead of piling on with labels – using the government as an easy target for our frustration and fear – how about we ask what really want and need from our government? It is OUR government after all. WE created it. Perhaps, if it is not working correctly, we need to look at ourselves and put the blame where it belongs. As business people we have to take responsibility for the results within our companies. Likewise, as Americans, we need to take responsibility for what happens in our country and our government. Not easy – but worthwhile.
We are unbelievably culpable to the problem since it is the politicians on “our” watch while this is happening. Sad but true!
Our poor kids will be just that, POOR with this mountain of debt given them.
Larry you are absolutely correct. I know I can’t personally make any significant difference but I intend to try to by running a successful, productive and profitable business. In this way I can put a very small amount of money back into the coffers. I’m raising my children and encouraging my friends to do the same. I think the government should operate on a balanced budget and not borrow to pay expenses. Just like a business, you may borrow to expand but you shouldn’t borrow to pay overhead costs.
I couldn’t agree more!! Now for the REALLY BIG PROBLEM, who will ever get elected (either party) by telling us the painful truth of needing to raise taxes AND cut spending. We can point fingers at each other all day long but that debt just keeps getting bigger, and bigger. But lets end this post on a happy note: Fun fact #1- One trillion one dollar bills laid out end to end can reach the sun, ya its about 96 million miles of ones and I think we are the only country in the world that can do that 20 times
There all a bunch of crooks.
Very Well said! Government doesn’t need to worry about profits. If the did they would have been out of business a long time ago.
The scariest words you’ll ever hear is “we are from the government and we are here to help!”
Ronald Reagan
ITs been about the me .me,me not us. The majority has been sufferring for non deserving blood suckers