Sunday, May 20, 2012

ECONOMICS: Boring but very importante...




I have to say a few words about economic matters as confusing as they may be, because our election may be steered by the condition of our economy which is being influenced by the European economic crisis as well as global economic happenings; our 401(k)s are also influenced by all the above…

In our country, the Tea Party Republicans have been screaming fiscal austerity, cut, cut, cut and don’t spend, well except for more bombs. I agree that our government spending has been out of control and specifically where billions are spent on many, many bridges to nowhere; no doubt about it… we are need of some serious fiscal reform.

At the same time we are in an economic predicament where many jobs were lost and so creating jobs for Americans is a number one priority for many of us. To create jobs, the economy needs infusions of cash and not just austerity cuts.

European countries have been profligate spenders for a very long time; their workers retire at 50, vacation for months and in some cases refuse to pay taxes while demanding everything be given to them for free…exaggeration yes but apt I think…look at Greece.

When their economic models became unsustainable which everyone knew would eventually happen, they stopped dead in their tracks and cancelled all freebies, increased taxes, sold a few national treasures and laid off countless thousands of workers that never really had meaningful jobs, more like being on the dole and pretending to work…extreme austerity.

Germany (economically sound) is all for extreme austerity after decades of free, irresponsible spending in countries like Greece, Italy, Spain, Portugal and even the UK.

But here the problem is the same as in the U.S.; cutting spending to the bare minimum will put people out of work thereby deepening the economic crisis.

Yes it is an interesting pickle that we all find ourselves in but the GROUP OF 8 meeting at Camp David this week has to agree that yes, cutting reckless spending is a must but pro-job and pro-growth spending is also a must.

You may have noticed that France has elected a left-leaning socialist president that is for pro-growth spending and Greece has also taken steps to put in charge more pro-growth politicians. The trend is obvious but will these politicians be willing to also CUT spending that must be cut?

In this country, Romney keeps yapping on how bad Obama has run the economy and how, once in power, he can easily solve all our economic woes through Tea Party mandated austerity cuts…well that may have sounded OK some time ago but is now sounding more and more inane since the country started on a slow but steady road to recovery brought on in part, by judicious spending.

I am bringing up the boring (to many) subject of economics because like it or not, what happens in the U.S. and around the world economically, will absolutely affect each and every one of us…and our children…and our retirement plans…etc.






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