Have you ever heard the phrase, “Use it up, wear it out, make it do, or do without”? You likely heard this phrase from your parents as they tried to teach you lessons of humility, value, thrift and industry.
What would you think of a parent who said to their child, “if you want a new toy, you can throw your old one away and we will buy you a new one?”
Which of these two messages is the government saying with the cash for clunkers program? We all know people who turned in cars. How many were clunkers? Can you imagine such a program in the midst of WWII?
I’ve often heard my father say, “You can’t spend your way into prosperity.” I’m pretty sure this is true because I’ve tried it.
What would you think of a parent who said, “Get some credit cards and buy stuff until you your credit limit is used up?”
Our president has repeatedly said that consumer spending is necessary to get us out of the recession. When we didn’t spend enough they loading up the nation’s credit cards by printing money and giving it to the public to spend. They even discourage you from spending money on bills or putting it in the bank. They want you to go to the mall and buy clothes or to Best Buy to purchase electronics. They don’t encourage you to purchase goods of high quality. They would prefer you to buy something readily consumable like an expensive meal because the velocity of money if greater.
Just as I have influence and power over my children, the government has influence and power over us. We need to ignore these immature messages and stick with common sense.
