What an interesting few months it has been. The banks over lent money and got money to replace it. The car companies have a bad business model and got money to fix it. I would like to say good for them but fair is not fair. When my credit cards got high the banks did not say hey, we understand here is more money to help you out. Nope they charged even higher interest. The old get 'em while they are down policy. Many people have failing businesses due to poor planning and the recession. Does the government say no problem have some bailout money? Nope it's too bad so sad.
Now the government has to pay for these bailouts. How do they do it? They borrow and make more money. I can not borrow we already covered that. To the best of my knowledge if I made money I would get in trouble. What do I do to help myself out? Well the government says if I spend more of what I do not have it will help the economy grow stronger which will in turn give back the money I do not have now. Let's do our fair share. Sell everything you own at pennies on a dollar and replace it with full price items. What a boost the economy will get. Pay your debts, get more credit, buy more things and let the banks get more interest to make them stronger. For the government, everyone send in a check for 100.00 marked for deficit only. Pay down the deficit, there is less interest, less interest is more money for government has to boost the economy. One question on that. If we did send in a check do you think it would go where we wanted it?
On a related but different note. Connecticut is rolling out the budget for the next 2 years. We are billions of dollars in debt and by law we have to have a balanced budget. Why are we in debt? People can not pay their taxes, the casinos are not making a gazillion dollars, and our investments are in the tank. Our governor has promised no new taxes but deep spending cuts. That means many goods and services will be cut and cities and towns will not get as much help. We will have to pay for our own trash, do with less police while our crime rate increases and many other agencies will be cut or combined.
That leaves the burden to the cities. Remember the state is not raising taxes but how will the cities respond? they will have to raise taxes. What does that do? it makes it even harder for people not paying taxes to catch up and pay more. Am I crazy or is there a vicious cycle in all phases of government.
What to do? Well sit back, take a breath and try not to solve everything at one time by throwing money we do not have after it. Hold the people accountable for their misdeeds. If I do not pay my bills or taxes go after me not my neighbors. If a company is on the verge of bankruptcy do not stop its service to the customer. Let the Leaders of the company lead by example. This year our board and the higher ups took pay cuts and less compensation. By the same token the rest of us will not get raises. Do I want and deserve a raise but if my 2% increase will save a job especially my own then have at it. A note here our company did very well because they always have contingency plans.
All businesses should do the same. Government is bloated and over extended. The president and most senators and congressman are wealthy in their own right. Take a 10% cut for the year. Freeze everyone else's salary and do not spend what we do not have.
Unions, good in their day but they have to bite the bullet too. It is better to have a job with a little less benefits or pay than no job at all. The unions are a big reason the big three will be the big 0 soon.
All this scrimping and saving will not do any good if we do not have a sensible well thought out plan to use the money to help each and everyone of us EQUALLY.
Off the soap box.