My philosophy of economic prosperity is summed up thusly:
+ I am responsible for my own welfare
+ I change the world for the better by not being a burden on my neighbor
+ Earned income, passive income, savings and investment are the cornerstone of my financial wellbeing
+ Debt reduces my freedom, my power and my options
+ Compounding works, but requires patience
+ Financial independence is the gateway to independence from governments, and therefore to freedom
That’s close enough. But if you believe in these tenets like me, we’re screwed. Central banks have removed many of our tools for economic freedom, and big governments everywhere are filling the freedom void with…well, more government.
For instance, can you remember the last time you were paid any significant interest on your cash? In Europe now, REAL negative and nominative rates of interest are here. It’s basically the same in the US. If we don’t earn money from lending it to banks and governments, there is no compounding. Saving actually costs you money. Strike one.
Taxes are high everywhere, especially here in the US if you are self-employed, or own a corporation. Government mandated health insurance is just the latest awful impost. I see from this article that new businesses are endangered, which tells you that lots of people see it ain’t worth the effort. Strike two.
Because governments manipulate people into thinking of them as providers of last – and even FIRST – resort, fewer folks look to hard work as the way to freedom. We saw this in Greece this weekend, where the socialists were swept to power. Mind you, the absolute ferfidy of pro “European” politicians and the central bankers who carry out their orders is responsible for this idiocy – the one result of central planning being a passive populace. Strike three.
I am angry. I am angry that we allowed bureaucrats and slimewad politicians to act completely in their own interest. And I fear it all might be too late.