There has been so much conjecture about who’s to blame for the present state of the economy. The first target of blame was George W. Bush. The next target was Bill Clinton. The other day I saw an article that placed the blame on Ronald Reagan. Give me a break!
The blame cannot be placed on any present or former president. The blame is a lot simpler and a lot closer to home. The reason the economy is in a poor state currently is because of two entities: corporate america and consumers.
That’s right! The buck stops here! We, the consumer are partly to blame for the current financial situation here in the United States. We are the ones who had to have that new car or the latest technology. We are the ones that throw out perfectly working products because the “newest” edition has one more feature.
The consumer (you) went out to the department and electronic stores and purchased at will. You are the ones that lived above your means. You are the ones that lost your appeal for the three year old automobile and chose to purchase a new one. You are the ones that decided to buy, buy, buy.
Instead of purchasing a pre-owned home; you went out and bought a new home. To top it off, you got a loan with a lower adjustable rate during a time when the rate was the lowest in history. Congratulations! The rate went up and so did your payments. Now you want to cry foul! You gambled, you lost, and now you want a do-over. Sorry! Take responsibility for your actions and live with the consequences!
Don’t think you are the only culprits here. The mighty corporations are also at fault. While you were patronizing their establishments in droves, they were worried that if they didn’t capitalize on their good fortune then it would go away. Did they do the responsible thing? No, they did the irresponsible thing by building more stores. They stood on the philosophy of “If you build it, they will come.” That is exactly what the consumer did.
Well, the interest rates on those low adjustable rate loans went up and people stopped coming. Well, what does the corporations do now? That’s right! They start to layoff and close stores. The supply becomes less in demand. Keeping what we have is more feasible than replacing it with the product that has that one new feature.
After the dust has settled, the loans that the consumers received for that new home can’t be paid back. The loans that the corporations received to open those new stores can’t be paid back because the consumers stopped coming. The banks now sit on a bunch of defaulted loans from the corporations and the consumers, so they now start to layoff also.
In all of this, how can a president of the past or present be responsible? He cannot because he did not cause the corporations and consumers to borrow and spend irresponsibly, or the banks to loan irresponsibly. He is just the leader of the FREE world. You were free to make the mistakes that caused our recession. If you don’t want to be free to make those mistakes again, then leave the free world. Make no mistake, you are largely to blame for our country’s financial problems.