Tuesday, January 24, 2012

President Obama does not know much about finances

It all boils down to what you believe: If you have the ability to obtain an extra $5000.00, do you believe that you can handle this money better than anyone else can? (Government) Our country was founded upon the principal that the private individual (And organization) could and will allocate resources better than government. Our current President does not believe this. He believes that he can spend my money better than I can. A problem here is that President Obama does not understand basic finances.

If you were in financial trouble, whom would you call? I don’t know about you, but I would call a guy who was successful. (Yes, someone who was much ‘richer’ than I) Why would you bring in someone who was broke to help you set your financial house in order? This broke guy would be much more likely to steal some, if not all of what you do have than someone who was ‘rich’ and did not need your money. Besides, a guy who is broke is also much more likely to be envious of what you have than someone does who already has much more than you. On a national level, many people do not believe our country is in financial trouble. Even our President seems to disagree.

President Obama has claimed that he has saved us from falling off an economic cliff. I believe that this guy does not even know what an economic cliff is. After all, he did not have any real money when he took office. He does not have the knowledge and experience to even know what he is speaking about. His actions demonstrate this as well as anything else we can see.

The fact that our current President has not passed a budget in the 3 years that he has been in office tells us a great deal about his economic prowess. How can you get your financial house in order if you don’t know what your economic position is? How can you tell if you are reaching your financial goals if you don’t know what you are spending or what your revenue is? Balance sheets and budgets tell you this. President Obama’s recent call for more spending to ‘stimulate’ our economy tells us that he does not understand the first rule of getting a handle on financial trouble: Restrict spending to the level BELOW what you are taking in. His answer is to just raise income. (Taxes on the ‘rich’) This answer has a twofold problem:

1) It is not always possible to raise income. (You may raise taxes, but the net income generated from this will not necessarily go up)
2) Raising income does not address the real problem of imbalance in spending. In fact, raising income tends to cover up this important issue.

How many times do you hear about that ‘rich’ professional athlete who goes broke within a few years after he/she retires? Or how about the person who won a lottery who went broke? It was not income that was the problem. It was spending on assets that are expensive to maintain. As soon as the income begins to fall, as it inevitably does, they are in trouble because the spending is on a higher, fixed level. This is EXACTLY what President Obama is doing.

Government pensions and interest on our debt are the fastest growing costs. Without restricting spending, it will prove impossible to contain these two important items. As Greece and Italy have found out. And if the U.S. does not change course, we too will find out all about it.

What concerns me here is that so many still believe that Democrats are the ones who will be able to solve this problem. Democrats supposedly represent the ‘poor’ and ‘working classes’; who don’t have much in the way of assets or income. Republicans supposedly represent the ‘rich’ who only want to protect what they have. And yet, why would you choose a side that does not handle resources well over a side that supposedly represents successful financial practices?

The answer is jealousy. If you are envious of the people who have more than you, it makes sense that you would pick someone who tells you how bad these people are and how much better off you would be if you chose a different path. In other words, class warfare. President Obama does not know how to make our country’s economy run better. He is relying upon envy, jealousy and class warfare to keep the support of ‘the working class’, so he can accomplish his agenda. This way, we will all be the same. We will all be broke. Then we will all be better off. This is not financial awareness nor is it financial skill. This is taking advantage of people who do not know any better.


  1. Jobs are not created by governments.
    Jobs are not created by businesses.
    Jobs are created by consumers who are paid well enough to buy more than they absolutely need to survive.
    I believe that many of our economic problems would be solved by imposing a compensation ratio upon all corporations employing more than a hundred people. This means that the CEO's entire compensation is no more than 20 times that of the lowest paid employee.
    What do you think of this idea?

  2. I believer that the CEO's compensation is only a symptom of our economic problems. I believe that professional ball players are way overpaid, but this is the value that we as a society place upon the entertainment that they provide.