Government Shutdown

Who wants the government shutdown to happen? The Republicans say the President wants it to make his political competitors look bad. The Democrats say the Republicans want to shut it down making the President look bad.  Which ever one is right, we are still in trouble.

Our growth continues to limp along. Large companies are holding on to their money because they refuse to spend it on new government regulations and Obama care. Certain medical facilities are shutting down because they cannot help their patients and pay their staff under Obama care.The world-renowned Cleveland Clinic said on Wednesday it would cut jobs and slash five to six percent of its $6 billion annual budget to prepare for President Barack Obama’s health reforms.

More people than ever are on food stamps. They can’t find jobs. There are fewer and fewer career type positions available and if one is looking for work he will find that there are only part-time positions without benefits. I know two young women who are living with their parents and working three part-time jobs because they cannot find fulltime work. They are both engineers.  Yet everyone disagrees on the solution.

Is a Detroit economy where we are headed? Government spending is greater than the income coming in. If that doesn’t change, we too are headed for bankruptcy, no jobs, no services, no healthcare and no retirement.

Meanwhile, the large businesses, the politicians and the social hyenas continue to fight while not looking at our real problems.

Financial Responsibility

Bankrupt shop, signes.

Bankrupt shop, signes. (Photo credit: Wikipedia)

Detroit’s bankruptcy bothers me although I knew it was going to happen. Financial failure is part and participial to the invasion and war within Illusions. A Republic Lost.

When educated and responsible people begin their married and familial lives, they know and understand that you cannot spend more than you make. You must keep your debt within managerial limits or nonexistent, and safe for the future.

We middle class know if you don’t pay the electric bill your electricity will be cut off. If you default on your mortgage you will eventually lose your home.

Now can anyone explain to me why some cities do not understand this?

Detroit has $18.25 billion of debt half which calculates to $26,838 per person living in Detroit. This amount is unsupportable.

When GM declared bankruptcy in 2009 it had been losing money for years in unfunded liabilities, the largest of which being pensions. Half of Detroit’s debt represents the unfunded retirement benefit program for state and local government employees. Note the word unfunded.

There never was enough money to support the pension programs that Detroit retirees may lose.

This is irresponsible financial responsibility. If you have a checkbook you know how it works.