photo by photos8.com
Written by Dave Young, President of Paragon Wealth Management
In the past we have written about the negative impact of politics on our economy and how politics impact the investment markets.
Political meddling affects the markets in several ways. It creates a host of problems, with slower long-term growth being directly affected.
The problem is fairly simple.
Every couple of years politicians run for office. In order to get elected they make all kinds of promises to those who give them money and votes. In order to pay back their supporters they pass laws and spend money to benefit them. That translates into massive unnecessary spending, which costs everyone but only benefits a few.
The politicians are happy to spend endlessly because they figure that someone else – in the future – will pick up their tab and pay the bill. In other words, there is no accountability or responsibility for their spending because they don’t have to pay for it.
On a national level, the debt they have created has become enormous. The numbers are so huge that most people just glaze over them. In other words, if something doesn’t make sense to us then it doesn’t sink in, and we don’t really understand it. We just ignore it, and we don’t worry about it.
It is time to worry about it.
If this financial mess and its damage is going to be stopped, it is up to the people to get involved and elect people who will stop the out of control spending once and for all.
George Bush was fiscally irresponsible and spent far more than he should have when he was president.
With his promise of “change” Barrack Obama is on track to create a debt in 20 months equal to the debt that it took George Bush eight years to create. After that his own projections show it getting worse.
The short video below puts the debt in perspective. It also shows how insignificant the $100 million dollars that the White House is going to “save” is. It is time to get serious about the debt.
The time for political games is past.
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