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Where Public Policy Fails, You Must Fill The Gap

8 April 2010 No Comment

If you haven’t figured this out yet, readers, then learn this now.  Public policy isn’t perfect.  While many politicians might have honest and good intentions with their legislative powers (and others may not), the result will never be perfect.  The government will never fill your needs entirely no matter what they promise.

So, most of you probably already figure this.  So, why bring it up?  Well, because you must fill the gaps where policy is failing and will continue to fail.  Your financial security, your overall security will need to be dictated by you because the government cannot and will not take care of you completely.

For example, take social security.  As a young person, it is probably wise to consider that there will be no social security whatsoever.  You must save and fund your own retirement or “security” during your latter years.  Why the government decided that it would provide financial security for old people is ridiculous anyways.

Another large potential failure of public policy might be future inflation.  You should work to protect yourself from inflation if it raises its ugly head in the future.  You can do this by putting your money in real assets like precious metals, stocks, real estate, maybe even consumer goods.

The biggest thing to learn here is not figuring out what policies will fail, but assume that most policies will fail.  You can’t predict the future and it’s tough to invest based on specific policy failures.  Instead, be responsible and take care of your own security.  Assume the worst about government policy and if certain policies work out, then you’ll be in even better shape.  Take control of your own future.

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