Economic firestorm: Which costs more, stealing or stupidity?


The economic firestorm that we are in the midst of is yet to be contained, or for that matter, completely understood.

Some things are very clear like the fact we spent more than we earned, as individuals and as a nation, for decades on end. That we know for sure, and regardless of who we blame the most for this situation there is no bigger economic mistake one can make.

This is something that I harp on often, and I expect I will keep on doing so because I do not have any reason to believe things will change; see: Ignore Washington -- keep saving; General Patton makes a point.



The dilemma of over spending seems to be an inherent problem in any form of government. It simply seems to be a requirement of holding office or getting elected to promise more, not less. This would be true in more authoritarian governments as well as the easiest way to "keep the peasants from revolting" .

Last week I introduced the concept of fire breaks in Does General Electric have an adequate fire break? as it may also apply to what I have referred to as an ECONOMIC FIRESTORM.

I think President Bush did not do enough to help the economy and for a Republican administration to ignore budget deficits and outspend his Democratic predecessor was outrageous. Now President Obama has decided to spend, spend, spend! THIS IS A BAD IDEA!!!

There are many parts of the recent spending bills I would agree with when it comes to stabilizing the economy. However, all of the the expenditures for health care, and other economic burdens are unwise. If our nation thinks that we need to reform the health care system, I am all for it. If our administration wants to spend first and find the money later, I'm totally against it.

I have been wondering lately whether it costs the average American more money in losses to thievery or whether we lose much more to stupidity and ineptitude. Then there is the matter of Congress that may be active on both fronts.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of GE and have open options as well.

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