Wednesday, March 29, 2006

A Trilogy of Economic Problems

A trilogy of problems are at work in our nation's economy.
First, the uncertainty of stable energy prices will play out over the next few months. I feel gas prices will shoot up with ease to over $3. a gallon in the foreseeable future. This again will increase costs for consumers and businesses throughout our country. Where does this money come from? Many will just charge the difference and not worry about paying it back while others will cut back yet again from other areas of their personal budgets. Where is effective, reliable public transportation in our economy?
Second, the United States national debt is a grave issue that 435 members of Congress continue to ignore. Pork seems to be King in our land and an $8 trillion+ dollar national debt continues to be ignored by all. Why does the Federal Government need to spend $.22 cents of each dollar just on interest alone on the national debt? Why can't government live within its means like many Americans choose to do? If they do not curb this problem immediately, the long run economic implications will be severe and far reaching. Look out for a great erosion in our standard of living.
Third, the magnitude of General Motors economic problems are far reaching. And no I do not wish to see government bail them out. It is a fixed cost that every consumer pays when buying a GM car or truck that includes paying their workers who do not work. Their Jobs Bank program pays workers full salaries for not working. What other business allows this? And you may wonder why the cost of autos has gone up so high over the years? Examine this program and you will see the incredible sums of money GM must pay. Why? A bankruptcy will have a grave ripple effect in our economy. However, much of this is due to GM and its union for these incredible costs that are passed on to the consumers. And consumers are saying no to GM vehicles in droves.
What are the answers to this trilogy?
My advice to you the reader is to pay off your personal debt as fast as you can...

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