Perils in Our Octocountry

The prefix "octo" is currently being overused in our country to describe many areas of our lives. It does seem appropriate, however, to use it in relationship to the multiple problems of our economy. We are currently dealing with at least eight, if not more, including crises relating to banking, credit, housing, health care, global warming, education, consumer spending, and two wars. The Democrats have squared directly off against the Republicans. Each side believes in the correctness of its arguments.

As we have always known, the primary difference between the two parties centers on the issue of whether to have big government or small government. Democrats support the former and Republicans support the latter. I confess that I have not been consistent in my political viewpoints throughout the past few years and now call myself an independent. In other words, I can be persuaded rather easily to listen to a compelling argument from either side.

The most compelling argument I have heard recently came last night as I was listening to an interview with Daniel Hannan, a British Conservative Party representative. He seemed to be the most logical in analyzing America's latest decision to spend our way out of this gigantic recession in which we find ourselves. He simply stated that the majority of us, private individuals who find ourselves in great debt. would simply cut spending and made adjustments to lifestyles. Only politicians and bankers, he said, do the opposite: go into a mode of extravagant spending. I also found Andrew Cuomo's argument forceful: American consumers who have lost over one-half of their savings through the economic crisis are being asked to pay for the bad decisions of the bankers and insurance leaders and also pay them huge bonuses. It doesn't make sense; it simply is not logical.

In the meantime, this small retired family is taking a conservative approach to finances. We will continue to tighten our belts and save as much money as we possibly can. We will reduce spending wherever possible. That does make sense. We prefer one crisis at a time, not eight or more.