Today I Learn… I make a point of learning something new everyday. This is what I learn each day

1, Jan 23, 2009

Perpetuating the Cycle of Borrowing and Consuming

Filed under: American Culture,Economy — admin @ 9:55 am

The president asked the nation to make sacrifice. In what way? What kind? Driving less? Eating out less? Live in a smaller house? Consume less? Change of lifestyle to more saving? None of the above.

What he actually plans to offer is this: we government borrow trillions of dollars and create jobs so that you consumers can make money and further consume to boost up GDP, because consuming spending makes up over 70% of our GDP and large part of that spending is on housing. In essence, this is the same thing as I borrow money via credit cards to maintain my consuming spree and go on like this as long as I have places to borrow.

But who are actually paying for this? Who are in reality making sacrifice? Not Americans, as far as we can see. Well, do we care to know who are supporting the government and our consuming habit? No, we are not that sophisticated to care about that. We are far more cheerful than this.

In summary, smart solution to recession: borrowing from creditor countries and going deeper and deeper in debt. Consume and forget “trillion dolloar deficits for years to come” as the president told the nation. How smart can we be?

With job loss everywhere and economy going downhill, how can we pay back the long overdue ancient debts, not to speak of the mountainous new debts? Well, we don’t and the creditor countries have to make real sacrifice by keeping lending.

What can parents tell their children about our dear president’s call for sacrifice? I am speechless.

No Comments »

No comments yet.

RSS feed for comments on this post. TrackBack URL

Leave a comment

You must be logged in to post a comment.

Powered by WordPress