Economic news has been really disturbing lately. Things just keep getting worse and worse and the American public has no clue!
Total possible funds dedicated to bailouts and the like has gone over four trillion dollars. The government has already “spent” over a trillion dollars combating our economic problems. All these things make me angrier and angrier!
But, I did have an epiphany today!
I actually had it when I was searching for articles on The Millionaire Next Door book. I have read it multiple times and I wanted to remind myself about some of the practices of millionaires in the book.
One particular book review stood out and it was Trent’s review at The Simple Dollar. Actually it wasn’t the review, but the paragraph below that really stood out.
There is one interesting phenomenon mentioned here that I’ve noticed repeatedly in my own life: parents tend to give more money to children with poor financial skills than to children with strong financial skills. Even in my own family, this is true; parents often give what little they have to the child who shows the least independence, while the child that works hard and shows the most independence get little assistance. On some levels, this makes sense, but on others, it merely reinforces poor behavior in the financially dependent child and can inspire resentment in the financially independent child. This further reinforces the idea that economic outpatient care is a bad idea.
This is EXACTLY what is going on in America and the world right now. We are reinforcing the dependent companies bad behavior and insiring resentment in those companies that have been independent and have run their companies by sound principles.
You know, I am glad Ford refused bailout money. It shows they are the stronger company.
Warren Buffett recently stated in his newsletter to shareholders that the government needed to intervene. This saddens my heart to think that he of all people would agree with that.
The government doesn’t need to reinforce bad behavior. Like a good parent it needs to encourage good behavior and gives strong consequences to bad behavior. It needs to regulate like crazy against the bad behavior!
Now if only we could agree on what good and bad business behavior is…