Some people might say the problem with America’s economic condition is self-evident in the sideshow that has come to represent the economic policy discussion in the Nation.
As politicians and policymakers continue to attempt to work the American public into frenzy over the seriousness of the economic situation throughout the country, they continue to offer solutions that have little practical value to a Nation more than $16 trillion in debt.
Federal Reserve Chairman Ben Bernanke suggested this week that the United States should eliminate the debt ceiling to allow government to spend at will. Bernanke’s reasoning is that the United States’ not raising the debt ceiling so that it can meet its financial obligations is like a family of debtors refusing to pay its bills.
"This is sort of a family saying, ‘we’re spending too much, let’s stop paying our credit card bill.’ That’s not the way to get yourself in good financial condition," he said.
Except a family of debtors doesn’t have the same ability to print money at will that the U.S. government has. That would mean, by Bernanke’s logic, a family of debtors unable to pay their bills should do what the Federal government already essentially does: borrow money it can’t afford to pay for the money it can’t afford to pay back.
Meanwhile, such notable economists as The New York Times’ Paul Krugman are suggesting that the Nation could ease its economic problems by minting a trillion-dollar coin to pay down America’s debt. That’s such a comical suggestion that comedian and host of “The Daily Show” Jon Stewart probably has had the best explanation of anyone as to why it’s a bad idea.
Stewart said in a recent taping of his show:
I’m not an economist. But if we’re just going to make sh*t up, I say go big or go home. How about a 20 trillion dollar coin? Or maybe, just forget about it and do one of these, “Oh, I was digging through the White House couch cushions and Eisenhower must’ve left this one hundred quillion dollar bill laying around.
When Krugman later suggested that Stewart was “ruining his own brand” by making fun of the trillion-dollar coin idea, Stewart responded, “If somebody is ruining their brand with a trillion-dollar coin idea, I don’t think it’s the non-economist.”
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I am a business consultant by trade and advise the micro entrepreneur business group and wealthy individuals. My observation is that people don’t know what money is for so they don’t know how to keep track of what or how they spend it. They also don’t use money to leaverage themselves.
If the general public doesn’t understand money and obviously our elected neighbors don’t understand what money is for so how can they possibly understand economics. Money is a tool for trade. Economies are built on trade. One must have money to trade for most things. Our elected officials would not be able to con the public into any kind of frenzy if the people were educated about the use of money.
The financial ignorance in the US is appauling. I see it every day so, for my part, I try to make a difference by teaching individuals and business owners how to keep track of their money and how to read their home and business financial statements. It amazes me to see the response when you ask someone what they are personnally worth. Basic answer from all parties is “no clue”. The people have to change before the government can change. Tall order. Money is the most powerful tool of trade in the world yet this fact escapes most Americans. They leaverage it poorly, give it to others to take care of and really have no interest in learning about taking care of what they have.
Criticizing the people in government for their activities should be followed by some form of solution otherwise the criticism is worthless. We all know what’s wrong. We need to know what we should be doing to fix this situation. I believe that basic financial education for the general public is the first step. All the tools are already available. It takes a year to learn and is cheaper than a semister in college. =:}
Yeah, as long as you are a “business consultant” who’s advising customers about “leveraging money” I’m damn pretty sure you are a part of the problem, and not the solution of what’s plaguing us right now. Just another stupid economist believing your place is to the right hand of God – St Peter be damned!…
You have no ideea actually what an “economy” is and how it works ( even in the absence of money), but you “advice small and big business” and you are “appalled about the financial ignorance in the US”…well, that’s probably because only complete idiots would ask your advice before ask about what you accomplished in your life!…
Which brings me back to the saying “Those who can – do; Those who can’t – teach! (or advise)”
Fortunately they are still a lot of “financialy iliterate” people here in the US, who don’t need your advice, but somehow they keep things going. All they need is “World improvers” like you and f&^%ng Government bureaucrats to stop “advising” and supervising them…
Calling Paul Krugman a serious economist is the equivalent of calling Hugo Chavez a private-sector capitalist. Krugman’s economic ideas are so asinine that to implement them would make America a banana republic without the bananas.
As for Witch Doctor Bernanke: The correct analogy he should have made is that when a family’s spending is causing it to approach their credit card debt limit, the thing they should be doing is stopping the excess spending and starting on paying down the limit; this would give the financial freedom to spend more in the future. Or maybe that moron really thinks that the way the world works is that the family is allowed to unilaterally raise their credit card limit by telling the bank that they will do exactly that.
For the uninitiated-to-the-real-world, this is called living within your means.
And if Benny were to spend a day in the real world, he’d be as functional as an infant. He already has the infantile ideas to match his experience.