“To complain and to blame is easy.
To know and to do requires effort.”
“It’s the economy, stupid.”, was one of three messages campaign strategist,James Carville coined in Bill Clinton’s successful 1992 Presidential campaign. The other two messages were, “Change vs. more of the same” and “Don’t forget healthcare.”
As the wise King Solomon reminded us—“There is nothing new under the sun” (Ecclesiastes 1:4-11).
“It’s the economy, stupid” was my response to a question my friend and client asked, “Would the actions of those damn Republicans help lower the interest rates?”
He missed the last refinancing wave, procrastinating in providing us with the necessary documents. This time, he would not mind if it would be the actions of the Republicans, with whom he obviously was not in agreement with, to help the interest rates go down again.
I really hope so too, since it would help millions of borrowers lower their monthly payments, whose property values increased during the last year (and it would help us pay off debts accrued from the previous economy slow down).
Paying off debts brings to mind one of the main reasons that caused the current economic/political conflict between the two parties. It was very well explained in the SF Chronicle article, “Does the national debt slow job creation?”, by Matthew Philips.
A comparison is made with a family (some economists do not agree with this analogy). If the family’s expenses are too high, there are a number of solutions: to cut down on spending, or to get another credit card. What would you do? Democrats want to keep all of those agencies, not producing, like the Consumer Financial Protection Bureau, who create a lot headache in the mortgage industry, while Republicans want to agree on cuts first. (Just a reminder, government expenses are paid by an increase in taxes).
The second issue is Obamacare, also known as The Affordable Care Act. It was interesting to read Dr. Sanjay Gupta’s response, which appeared in the October 13th SF Chronicle supplement Parade. He applauds the Affordable Care Act, calling it “an important step.” But he cautions that offering most Americans access to insurance is not a cure-all. “If you don’t make America healthier, you’re not going to control costs,” he says. “And ultimately that’s what we have to do.”
It seems, the core of the problem is our habits—either our eating, or government spending, and how to control them. In the end, it all boils down to what is the best solution for people, and who can answer this question without ifs and buts.
P.S.
On our visit to Florence, we saw a lot of beautiful architecture, and art collections accumulated by the Medici family, who were bankers and business people and ruled Florence between the 13th and 15th century. Nowadays, Florence is a tourist destination. While there are many architectural marvels around, I wanted to show you how people today blend into the old beauty.
Do not keep me as a secret.
SMILE AND PLEASE SHARE IT WITH A FRIEND
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