February 10, 2009

I’m not an economist.  I get the basic concept of supply and demand.  That’s about the extent of my understanding.  I listened last night to a portion of the presidential press conference.  A lot was said about the Economic Recovery and Reinvestment Plan (which I think is the same as a stimulus package – not sure why they went and changed the name).  Anyhow – I was struck but Chuck Todd’s question following the scripted briefing.  

“In your opening remarks, you talked about that if your plan works the way you want it to work, it’s going to increase consumer spending. But isn’t consumer spending, or over-spending, how we got into this mess (emphasis mine)?  And if people get money back into their pockets, do you not want them saving it or paying down debt first, before they start spending money into the economy?”

I can’t quite articulate why I like this question so much.  It just seems like a legitimate question to ponder.  Sure – lending institutions took absurd risks and unprecedented advantage of individuals.  Yet – what about personal responsibility and sound judgment (or lack thereof)?  I’m really not going to go any further with this – just wanted to revisit the question.

Speaking of finances…

On Saturday, February 21st – Casey Graham of ReThink Money will be leading an event in Dickson.  If you’d like to participate in this short-term financial experience – just let me know and I’ll get you the details.

2 Responses to “$$$”

  1. Nice lead into the ReThink money plug 😀

    As far as the bailout goes,im not economist either. I belive pepole should be held accountable for their actions,but I think the same should go for lenders. Its kind of the same as the question “Who do you blame,the drug dealer,or the drug buyer?”

    If pepole never would have signed up for these loans,then we wouldnt be in this mess, however, if the lenders had never offered them,pepole never would have had the chance to sign up.

  2. Personal responsibility. That will preach.

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