If you listen to the mainstream media and numerous left-leaning economists (read Democratic activists), they’ll all tell us the country’s headed to “hell in a handbasket” and you better start stocking up food. Furthermore, they’ll continue to tell us that the solution to our problems will come in the form of a President Obama or, the next best case for the media, another President Clinton. That’s all fine and dandy if you live your life relying on the government to solve your problems for you.
Yes, that’s right, your problems! Despite the nonsense that comes out about mortgages, interest rates, and people not being able to make their credit card payments, that didn’t stop people from buying brand spanking new high-definition televisions at such an absurd rate in 2008 leading up to the Super Bowl. In fact, here’s the actual 2008 estimate from retail organizations:
158 million people are expected to tune in to watch Super Bowl 42. A retail group predicts 3.9 million new televisions will be bought for the occasion. That’s up more than 50% from last year.
Wait, read that again if you didn’t absorb the actual numbers. Sales of expensive, luxurious, unnecessary high-definition televisions costing thousands of dollars were up 50% in 2008 over 2007. How can that possibly be? People can’t afford their mortgages and the economy’s headed into disaster! I know, you’ll tell me that if the economy was better, they would have gotten bigger HDTVs but had to settle for the 42 inch over the 50 inch. For shame, George Bush cost everyone an extra 8 inches of picture!
Let me get to the point of this story in a nutshell. This is going to be shocking and I’m sure half of you will call me “harsh” for telling the truth.
The crux of the matter: If you are irresponsible with your money and rely on the government, you will be poor the rest of your life.
There, it’s been said. The truth is out in the open now so nobody should continue being under the false notion that Uncle Sam is going to help make you a millionaire. What’s more is if you think Obama, Clinton, or even McCain is going to improve your personal financial situation, then God help you. If that’s the case, then you probably do care which one wins since it will directly affect the size of the government bailout you count on to pay your bills.
Therein lies another problem. If you believe every economic-related statement that comes from a candidate running for president, you will probably be the most ill-informed person when it comes to the topic of finances. Here’s another shocker, presidential candidates lie about and distort facts related to the economy. So much so, that according to Thomas Sowell, “if all the economic fallacies promoted by politicians were taken out of their speeches, many of those speeches would be cut in half, at least.” Therefore, do your own research on economic issues and take responsibility for yourself, don’t let a politician tell you “how things are” or how they can “fix” the situation. It’s utter nonsense.
The next evidence which destroys the notion of our economy “teetering on the brink of collapse”, our amazing 95.2% employment rate. That equates to a 4.8% unemployment rate. By most every account, that is full employment. In fact, several percent of the country will always be “unemployed” as they’re just between jobs or changing careers. Another percent probably doesn’t work at all just enjoying their welfare checks every month.
If you are younger, let’s say less than 40, you need to get your head out of wherever it is and become responsible for your money. Do not depend on the government, do not depend on Obama, Clinton, or McCain, do not depend on Social inSecurity, depend on yourself because it’s your job to be financially responsible! I have compassion for retirees living solely on Social Security, but it’s not my fault they didn’t save throughout their lifetime! Furthermore, it’s not your fault that I am saving. So don’t ask me to bail people out later in life when they screwed around, got in debt, and depended on the government.
So what’s the solution for the Social inSecurity government-dependent people? If you were to take $300 from your paycheck per month and invest it into a retirement account such as an IRA, that would equate to $3,600 per year invested earning an average of 8% interest, which is modest because many mutual funds will average 10-12%. If you did this from age 25 to age 40, just 15 short years, you will have invested $54,000 of your own money, and be left with an account worth $104,504 in that time. In fact, then assume you don’t invest another dime from that point forward and you absolutely do not touch that IRA. At the age of 70, that $104,504 will have grown to $1.07 million. Yes, over a million just by you taking responsibility and saving a measly $300 a month for 15 years. That’s less than most people’s restaurant budgets.
Then, think of it this way, what if you kept putting in $300 beyond the 15 years, you’d have several millions. Your wealth would grow exponentially in years and it only takes a short time. However, presidential candidates don’t tell you this, it ain’t rocket science, it can be done by anyone with a brain and an income, which is 95% of the country.
If you do suffer from government-dependence disorder and think you are not responsible for your own problems, watch this clip and be enlightened:
Change out credit card, car payment, or any other debt for a “sub-prime” mortgage and the same principle works. Why can’t you afford your credit card payment? Perhaps because you charged too much on it! Perhaps because you live beyond your means and expect everyone else to pay your bills!
Here’s the bottom line. We wouldn’t be in a so-called “financial crisis” if everyone wasn’t financially irresponsible. Take this scenario, let’s pretend you had a 3-6 month emergency fund and you get laid off? You’re fine! You have 6 months to find a new job! The same holds true for anything. However, if you are living in debt, spending more than you ear, and depending on the government to take care of you, well then you have screwed yourself so don’t ask responsible people to bail you out.
Our government is an embarrassment, this is what happens when our government rushes to aid in the “bailout” scenario to help Bear Sterns or any other entity which puts itself in the situation:
It’s true, there are no capitalists in Washington, including the presidential candidates. They all want to buy your vote with a bailout of something. They all want to relinquish everyone from personal responsibility.
Why do responsible taxpayers have to bailout anyone? Why don’t you take responsibility for yourself for once and stop blaming the government for your bad spending habits. If our economy collapses, it’s our own fault for not being responsible. If people can’t pay their mortgages that they never should have taken out or been approved for, it’s their own fault!
Listening to people say the “economy is collapsing” is like listening to the global warming alarmists. Nothing adds up and someone stands to make political points or a lot of money off false information. Right now, Democrats stand to inherit the White House if they convince people that being irresponsible is George Bush’s fault.
Furthermore, for anyone who even uses the “R” word, recession, check your dictionary for once before you begin repeating something you heard from CNBC or Jim Cramer.
Here’s the true definition of recession:
Definition: A recession is defined to be a period of two quarters of negative GDP growth.
Thus: a recession is a national or world event, by definition. And statistical aberrations or one-time events can almost never create a recession; e.g. if there were to be movement of economic activity (measured or real) around Jan 1, 2000, it could create the appearance of only one quarter of negative growth. For a recession to occur the real economy must decline.
In layman’s terms, 6 months of negative economic growth. We haven’t even had 1 month of negative economic growth so anyone who says we’re in a recession is either lying or ignorant. We’re not in a recession regardless of what absolutely anyone says, and I mean anyone.
Now, all that being said, if you are responsible, then I salute you and say “good job”, you are the people everyone else will be expecting to bail them out when they get in over their head. Now you have to help break everyone else of the “poor me” mentality.