Why Make Political Commentary On A Financial Blog?
Many people might wonder why I make so many political statements on this blog. The unfortunate reality is that your money, the markets, and business are completely intertwined with our government these days, and sadly, also with politics. If we had a true free market, there would be zero political commentary on this blog because government wouldn’t be involved in personal finance, with business, with the economy or with investing.
It sucks that government is most likely the biggest factor in your finances these days. I’m frustrated that I can’t invest based on real economic fundamentals, but instead have to also factor in government stimulus, currency manipulation and bailouts. I guess this is probably similar to a doctor who just wants to focus on medicine and his or her patients yet also needs to consider government when practicing medicine.
One only needs to look at yesterday’s GDP numbers to see a glimpse of the government involvement in our economy. Cash for Clunkers and other stimulus by the government made up most of the 3.5% growth of the last quarter. So, many of you may say, but we got growth! Isn’t that good? Well, I’ll respond to that by asking a question. Is a single quarter of growth worth the cost? Is it worth inflation and/or borrowing from the next generation? Maybe it would be if this single quarter of economic “growth” actually was sustainable growth. But it’s not. Remove the stimulus, the growth goes away. So what’s the answer?
I long for the day where I don’t hear a politician talk about the economy, about jobs, or about health care. Why? Because most of them haven’t a clue about any of those things. They know how to read a poll and how to run for office. Those are their skills. Leave the economy to me and you. Leave jobs to the hands of businesses free to grow without over-burdening regulation and taxation. Leave health care to Doctors! But, we’re a progressive society these days. The Constitution is old and irrelevant to today’s world, right?
The following video is a fantastic comparison of what the Founder’s of America believed and what many of the leaders or public officials today believe. This is a great segment: