I was recently explaining to a patient that certain “high risk” behaviors carried unfavorable consequences. The young man had chosen to live a promiscuous lifestyle, engaging in unprotected sex with numerous partners. I treated him for the benign transmitted disease of this visit but warned him it may not be so easy next time. He seemed incredulous that I would ask him, for his own good I might add, to change the choices he was making. This guy was "live now, pay later and damn you for suggesting otherwise." Even in the era of aids, this patient refused to accept that his choices could create for him a terrible future and cut his life short, or he just did not care.
When I share stories such as this, many people frequently ask me how it makes me feel? Each of these situations is unique and so saying how I feel is difficult. But, in general, freedom does mean that a person can chose to live a certain way as long as they are ok with accepting the consequences of their own actions, and do not attempt to spread the blame for their predicament on others.
Not accepting the responsibility for our choices is a mentality we see everywhere in our society today. But the absolute truth is, the choices we make determine the future we will enjoy or endure. If you chose to use illicit drugs you stand a very good chance of becoming addicted and squandering the gifts and abilities given you. If you choose to go to college, then very clearly your chances of a better life are measurable. Choices matter.
This is also very true of our financial decisions. Spending choices made today impact the ease or hardship of our future. If you bounce several checks and run up a great amount of credit card debt, you will eventually pay the piper. Your life will be different than the person who makes the choice to save, invest and grow wealth. Ask Warren Buffett.
Unfortunately, our elected officials do not seem to know this, or they choose to ignore it for their gain and our children’s loss. Choices made by our government affect our children's future.
It’s hardly debatable that the congressionally mandated home loans to low income people, loans banks would not have made had the various laws and regulations not been passed, caused a serious financial risk for many banks. Many of these “subprime” loans were given to people with bad credit, without checking credit scores, and without documenting income.1 In 1992, The Department of Housing and Urban Development pressured Freddie Mac and Fannie May to purchase many of these bad loans and to make even more money available for risky loans. In 1995 The Treasury Department created the Community Development Financial Institutions Fund, which gave banks tax dollars to make more of these loans.
The banks, through selling a newly created vehicle called a “derivative,” spread the risk throughout the financial sector. AIG was heavily invested in derivatives.2 As the stock market fell secondary to the insecurity investors felt with the housing crisis, bank assets versus liabilities exponentially worsened creating the financial crisis. With investors holding onto their money, the economy ground to a halt.3 Our elected officials compelled institutions to give loans to people who could not afford them and in the end led those institutions to failure. Choices matter.
And what is the government’s response to all these crises? More intervention and more tax dollars spent or promised for the future; more choices to live now and pay later. Through the end of 2008, the United States was about 9 trillion dollars in debt. During his 8-year presidency, George Bush added 4 trillion dollars to the national debt. President Barrack Obama’s current budget and stimulus plans within the next decade will double that figure according to the nonpartisan Congressional Budget Office.4 Obama’s additional 9.3 trillion debt choices have consequences.
To add a little perspective, only 7 countries in 2003 had total economic output greater than 1 trillion dollars. Our debt is at a minimum, 7x more than the entire economic output of every country in the world except the top 7. Many economists believe we are already on a path toward bankruptcy that cannot be turned back.
Choices matter. Leaders in both parties have absolutely failed us. Our politicians have chosen to sacrifice our future for the present. The health of this country has been spoiled by the high risk spending practices of its elected officials. Unless we act almost immediately, the consequences of these choices will destroy us.
Mark
1Stan Liebowitz, “The Real Scandal,” New York Post, Feb. 5, 2008
2Lynnley Browning, “AIG’s House of Cards,” Portfolio.com Sept. 28, 2008
3Mark Levin, Liberty and Tyranny, Simon and Schuster, New York: 2009
4 http://www.washingtonpost.com/wp-dyn/content/article/2009/03/20/AR2009032001820.html?
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No sooner had I published the above than did our President issue the statement that our debt was unsustainable. What's interesting is that the recent Tea Parties were discredited because "no tax increases had occurred yet." Well, if continued debt from China is not an option, and he continues to spend the planned 9.3 trillion deficit over the net 10 years, then the feared and expected taxes of the Tea Party attendees is inevitable.
ReplyDeleteAnother factor in government-run health care is that beneficiaries who complain can bypass the queue if they get the attention of a member of Congress or Senate. This of course causes some other hapless soul to get bumped in order to make room for the complainer. The congress-person loves to get involved, its good PR and they are "helping" a voter. When I worked in a VA hospital there were some patients who were designated as "VIP's" because they had complained or were friends of the congressperson. These VIP's got priority service and benefits even surpassing those given to service-connected veterans. I'm sure that any government-run system would operate this way.
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