Making the Rich Richer.
September 30, 2008 – 7:59 amSo in June my family (me, my wife, and 3 children) received a check for $2000 as part of the economic stimulus package. At the time, I wonder who is paying for this. It seemed like free money, but I know that it has to come from somewhere. But the government said just spend the money and the economy will do better, but I reasoned if someone gives me a large screen LCD HDTV doesn’t someone have to pay for it? How is taking the gift helping? The alternative would be that the gift really wasn’t a gift, but a carefully disguised ploy to put more money in the hands of the wealthy. Eventually, deep down I knew that I would eventually have to pay that $2000 back (plus interest). Anyway…
Well, now the government is considering some kind of billion dollar bail-out. The plan that died in Congress yesterday would have cost roughly $2000 per person in America (every man, woman, and child). So, at some point my family would have to pay back an additional $10000 for this bail out. Who is getting all this money? Sure isn’t me. How about you? Yet, me, my wife and my children (and probably grandchildren) will eventually have to pay back this debt.
The debate continues between Wall Street (controlling the media and apparently the politicians) and main street. There two questions that I have:
Who do the politicians serve? When the politicians are receiving 100 calls to 1 against the bail-out plan and it almost passes, who are the politicians serving? Apparently, many politicans are serving the rich minority, putting at risk the majority.
If we continue on the track we are on - a track that has continued to widen the gap between rich and the poor - then the majority will bear this burden for the minority.
The second question is who is going to paying for the overindulgence? There are more and more people living enslaved to banks and creditors who have been allowed by the politicians to charge huge interest rates, which make the rich - richer. The banks and creditors have broken the back of too many Americans and now are trying to steer the politicians to make the tax-paying populous continue to make them richer. They were successful in changing the bankruptcy laws. Now, they are trying to brake the backs of generations by making the taxpayer slaves to their overindulgence.
If I listen to the rhetoric, the government wants us to believe that by having them buy assets that are not fiscally solvent and poorly managed everything will get better and be paid back. How can a government that is infamously known for not functioning effectively and spending more than they make take on privately held companies that are in need of better management and fiscal control? Come on.
It is time for change. The status quo means the every person (even the unborn) will continue to bear the burden of the rich. It is time for change!
What are your thoughts?
9 Responses to “Making the Rich Richer.”
Like your thoughts! Don’t like the bailout, either. The market is controlled by group-think. It goes in cycles. If you are stupid and greedy, your company will be bit in the tookas. Discipline is the key. If these folks won’t discipline themselves, then government should discipline. There’s already $500 billion of liquidity injected in the market through all the bailing out that’s gone on already. Why boost that over $1 trillion? And, Joe, you are much too humble. I’ve been responsible. I pay my mortgage. I save. I put money in the market for my retirement. I want some RETURN on my responsible investment. And, I want to see some greedy corporations FAIL.
All of this is great motivation for people to attend Trinity’s upcoming financial seminars. Now, I just need to get them off the ground.
By Dave on Sep 30, 2008
Typical liberal … calling for change , but what is the change Joe? What is your solution???
By DJ on Sep 30, 2008
Not sure what you mean by liberal, but I believe the solution should be a return to Laissez-faire capitalism and the government should be hands off. If they want to be involved then let them increase the FDIC limits.
Regarding taxes and social reforms: Let the social reforms take place in the philanthropic/religious world. Less regulation, balance the budget, get taxes at a reasonable rate to balance the budget, and let people give where their hearts are and be taken care of by people who care about people.
What is your solution? Let the gap between the rich and the poor continue to increase? Until when? What is at the end of the road we are traveling?
Someone needs to pay for all of this mess and personally, I would rather pay for it than push it off on my children and grandchildren.
By Joe Tiedemann on Sep 30, 2008
I am not saying this was the best solution either, but at least it is a solution . The Bailout was not to make the rich richer…. the bailout was to make sure that money was there to assist the people who may need it. People who need loans to pay for school and such the money can be there. This is almost what Obama said word for word…he supported it.
I agree that social reforms should take place privately , whether it is the religious world or in another way , Government should stay out of our lives as much as possible, we should not raise taxes , but cut the crap spending that is not needed.
My solution is we need some sort of bail out package with a bunch of legislation so we don’t get in this mess again. This doesn’t mean that the rich get richer, but what we need to consider are the people who rack up huge debts with no way of paying it off, what happens to them? People who do not live within their means? It all goes hand in hand .
Giving tax breaks to businesses is not intended to increase the gap between the rich and poor, but to help create jobs .
Also this is nothing new, there has been legislation introduced in the past , but it was the democrats who shot it down.Read it here http://directorblue.blogspot.com/2008/09/any-questions.html
So who’s fault is it?
By DJ on Oct 1, 2008
It seems to me that most of the people in this country have over indulged just like the greedy corporate elite. Everyone has a new car, home, cell phone, flat screen TV, Cable, satellite radio, etc. Anythng we want we whip out the credit card and buy it. We are a country that has been living on credit for far to long. Maybe now with the credit market “freezing up” it would be a good time to stop borrowing and start paying back! If we all took responsibility for our own behaviour the money would start flowing on its own.
By Tim on Oct 1, 2008
Tim i agree, People live well outside of what they can afford, Not Just people ,but businesses.
By DJ on Oct 1, 2008
“Government should stay out of our lives as much as possible”…”My solution is we need some sort of bail out package with a bunch of legislation so we don’t get in this mess again.”
DJ, so which is it? Government out of our lives or a bunch of legislation…
Sounds like you want to be for free markets and less government, but then you go ahead and want more government regulation and oversight.
By Joe Tiedemann on Oct 1, 2008
I hope the two of you are watching C-Span. Every Senator who is for the bailout continues to state that we need this bailout so the American people can get a loan for a new car?!?!?!?!?!?! and send their children to college?!?!?!?!
Nobody needs a LOAN for a NEW car today. What’s wrong with your current car or a used car or a bike or public transportation? College tuition has risen to ridiculous amounts all while most institutions have huge endowments! Maybe if we can’t get a loan for our kids to attend these universities they will be forced to lower the tuition. It will all work out in the end for the good of the country if the government will just stay out of it.
By Tim on Oct 1, 2008
Joe, I never said that a bailout package has do do with government throwing money at the problem, but something needs to be done! A bail out could be as easy as reducing taxes to help ease the burden on all (Rich and Poor),maybe another stimulus check included, also introducing legislation that would somehow regulate people who are spending beyond their means!
You see it all the time with people who make less than I do maxing out their credit to buy things they could never pay off. Then they consolidate their bills and the lending companies get less back than what was promised . Who pays for that?
By DJ on Oct 1, 2008