You Gotta Laugh

In the past few weeks two separate, yet undoubtedly related events have brought me some supreme chuckles (laughter, not the candy.) The first is the White House deciding to commission a group of people to figure out why we have a federal budget deficit and what we can do about it. If you can't see the humor in this, then you might hurt yourself. The government, the people in charge of making the decisions for the most powerful nation in the world, need a special commission to point out that when you spend more than you bring in it leads to a deficit. Boy I am so glad these guys are in charge. But here's the rub. Pretty good chance the commission won't come to the conclusion that spending more than you bring in is the problem.

Let me offer a simple solution for our federal budget deficit. Pass a law that until the deficit is gone, the federal budget for the next year must be less than 99% of the previous years revenue. Now, that doesn't get rid of all the old debt. Nor does it determine the means for reaching that number (could be budget cuts, tax increases, whatever). It is simply the first step. It would be like cutting up the credit cards as a first step in getting your own personal finances in shape. But the government would almost never do something this simple because it would be too easy to track when the government didn't stick with it.

The second event was an article I read in the January 12 edition of Time. The point of the article is that with the economic problems that have gripped America, it has become obvious that many Americans do not understand personal finances. The article asks how we can educate our children so they do not make some of the same stupid financial mistakes of the previous generation? The answer: The government is sending out new curriculum to be used in our schools. (This is when you must fall down, lay on the ground, and laugh til it hurts.) The government, massively in debt, unable to stick to a budget, and proposing new expensive legislation in the midst of a "financial crisis", wants to teach children how to handle their money!

No matter where you stand politically, the way our national government has dealt with our money for many years goes beyond ridiculous. Yes, many families are in dire straits because of stupid financial decisions. Only, they don't have the luxury of raising taxes or borrowing from China. The gall of the government believing it is in any position to give financial advice. It is a drowning man claiming to be an expert swimmer.

Post Script: In the article about children needing financial education the word "parents" was never mentioned.