Saturday, March 28, 2009

You can build on the basics, but you can't go beyond them

I don't claim to know a great deal about economic or political matters. From what I've seen, this makes me a perfect candidate for political office. But I digress.

I DO know that sometimes things don't SEEM to make sense because they DON'T make sense. In complex matters, we tend to assume the people who are involved in leadership know what they're talking about, and if we only knew as much as them, we'd agree.

But the current state of the world is proof that, generally speaking, the same basic principles of economics apply on a large scale as well as a small scale. If you don't have money, it's not wise to spend it on non-essentials and assume you'll be able to afford it eventually. If someone can't afford to buy a house, it's not wise to sell them one. If you make a bet, be sure you have the valuables to back it up (or at least a clear path to the back door).

So since it's not possible to elect Jim Rockford to office (what with his being a fictional character and all), maybe we could at least draft Dave Ramsey into an advisory position. Too bad more people haven't listened to him all the years he's been teaching financial principles that make sense. I'm including myself in this.

Here's an article that demonstrates my point. It's hard to say at this point that one political group or the other is to blame for the economy, because 1) no one really understands the economy and 2) too many people on both sides of the aisle were making bad decisions or failing to make good ones. But this article may be enlightening "for those who have ears to hear." (Hint: if you're a big fan of Barney Frank and/or the Democrats, you may not enjoy this).

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