We’ve been told that the more the government spends, the better off we’ll be. Instead of dealing in concrete numbers, we hear about how many jobs were saved while the unemployment count goes up. And, my favorite one is that a company is too big to fail, which was pushed by the former as well as the present administration.
Pre-boomers, like me, studied math from the time we started school, known back then as grammar school not elementary school. After years of learning, we know there’s no need for advanced trigonometry or differential calculus to run a column of numbers, figure percentages or balance our own household budgets. Then how come the big corporations refuse to get it right and those in Washington can’t get it right?
A family that spends more than it makes goes broke and loses the house, the car, everything. The only way they can get out of the financial hole is to stop unnecessary spending before it’s too late. Plus, they do things like work overtime, take an extra job, and make arrangements with creditors to restructure loans and payment plans. What they don’t do is use high-interest credit cards to rack up more debt, which is exactly what the government is doing with the bailouts, unbridled spending, and at the same time trying to tackle every social woe known to America.
The only place where unemployment is at the favorable 5 percent level, while many areas are experiencing 10 percent problems plus underemployment on top of that, is, you guessed it, Washington, DC. Yeah, what we need is more people to administer the spending plans. Maybe some of them will be able to tell us where the money is going, how it’s being spent, and what results were achieved. If these new federal jobs don’t provide this information what are the people being hired to do, because we all know the government does not produce anything. Nothing that will add to the Goss National Product, employ people in the rest of the country (oh, I forgot, positions are now being filled to take the census next year and it will be conducted nationwide), or bring in tax revenue from businesses and the workforce to pay for the spending. This means higher taxes for all of us, not just the rich; or the government will have to print more and more money as well as pay higher interest on the funds it borrows, which leads to inflation.
This brings me to the third point: the notion that a company is too big to fail. It’s pure nonsense. Could it be that primary reason for failure is because they are too big in the first place? Quite possibly, the management has lost touch with what the business is all about, with the employees, and above all with the consumer. The way to fix this is to scale down, cut back, and reorganize – much in the same way the average American family would have to do it.
And this is exactly what our government must do too. Or, we’re going to leave a terrible –almost insurmountable — financial mess for our children and grandchildren. If you disagree, just do the math.