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A Message to Young People: How Did We Get In This Financial Mess America Is In?

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Evans Liberal Politics
September 1, 2010

 

A Message to Young People

 

Question: How Did We Get
In This Financial Mess America Is In?

 

Evans Liberal Politics, September 1, 2010, by my friend Elizabeth:

A Message to Young People


You know something isn’t right. You’re not dumb

Today, Fall 2010— Many people are having a hard time. More than 10% of Americans are on food stamps. Around 17% of people are unemployed or are only working part-time.  And ever since February 2009, 10,000 people have lost their homes each day. I know. It’s so sad.

Q: Why is our economy so bad?

 

A: There are 4 major reasons we are in such bad shape. I want you to understand these reasons. I am 50. You are younger. This is your country too. Sadly, this will be your mess to clean up.  You’ll be around a lot longer than me…. Unless… hey!? Where is that fountain of youth?!

Reason #1 we have an economic crisis: Banks can gamble. If you deposit $100, the bank can loan out or play with (gamble) $900. Recently they lost a lot of money. That’s why we had the “banker bail-out” that you heard of. They were “too big to fail”. Hmmm.

Until 1999, the banks couldn’t gamble. There was a rule called “the Glass-Steagall Act that stopped them. Then in 1999 the government got rid of Glass-Steagall.

If you gambled, would your parents bail you out?   (HAHAHAHA). Ask them!

Reason #2 we have an economic crisis: A private central bank (the FED) controls our nation’s money supply.

.

The FED controls the interest rate. If interest rates are low, borrowing money is cheap. But if too much money is borrowed too easily, bubbles can form. There was a housing bubble when people who didn’t have much money could buy houses easily and housing prices rose and rose and more and more houses were built—everything looked great— until the bubble popped.  Then lots of people and banks and financial institutions lost money and many, many people lost jobs.

Note: Thomas Jefferson (the 3rd president of the United States) said, “…if the American people allow private banks to control the issuance of their
 currency, first by inflation and then by deflation, the banks and corporations 
that will grow up around them will deprive the people of all their property 
until their children will wake up homeless on the continent their fathers 
conquered.” (YIKES!)

Reason #3 we have an economic crisis: Many companies have moved their operations or
part of their operations to other countries.

This is known as “outsourcing” or “off-shoring”.

Q: Why is it that sometimes when you call a customer service number you get a person on the phone who is from another country?

A: It is because a U.S. company has moved all, or part, of its operation to another country. Those workers are usually paid much less than U.S workers.

In the 1980’s and 1990’s the government passed laws making it easier for U.S. companies to move to other countries. Ronald Reagan lowered tax on imported goods and Bill Clinton signed international trade agreements—NAFTA and CAFTA

In fact, since 2001—over 42,000 U.S. companies have moved to outside the U.S. and 2.1 million jobs have moved too!

If you start a company someday, could you please try to keep it here in the U.S?

Thanks!

Reason #4  we have an economic crisis: Our foreign policies are very expensive.

We spend more of our money on defense than nearly all other countries in the world combined.

We spend 46.5% of all military spending in the world—Is that really necessary? It will come from your paycheck.

Also, for some reason the U.S. has more than 800 military bases in approximately 130 countries— like Japan, Germany, Korea, Iraq. You have to ask yourself as an American: how would you like another country building bases here? I bet some people hate it so much that they fight us…. They become terrorists!

To Sum— Thank you for reading this. I hope you can understand know why we are in this economic mess. You don’t have to believe me. Get yourself informed. Make decisions you believe in because YOU have learned the facts.

Good luck. May you become a wise, kind, safe and generous adult. J

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Posted on August 31, 2010 by , 49 comments
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