Peter Schiff:
Basically the sum of his position is that we're spending too much, we're borrowing what we can't pay back (both individually & as a nation), we're not producing anything and we're not saving anything. No government bailouts whatsoever. Let failing companies fail. He predicted a great majority of what we are seeing now a few years ago, and was poo-poohed by the cable news anchors and other experts (which is what the video shows).
He's a little more laissez-faire than I am -- I think that there needs to be some regulation on Wall Street because asking them to govern themselves is folly. But I'm 100% against a second round of stimulus. That's the government basically telling us to spend our way out of this recession, which is what got us into this mess in the first place -- overconsumption.
I get the Planet Money podcast and was listening to him last night (after also hearing him on All Things Considered -- yes, I'm an NPR junkie) and found myself saying "yes!!" several times because so much of what he was saying was dead on. My favorite was this (I'm paraphrasing): "A growing economy is one that is saving and producing. Our economy is borrowing and spending." He's predicting the Great Depression, Round 2, especially if we continue to bail out companies that maybe have no business being in business. He essentially wants to tear everything down and build it back up again for short-term pain and long-term gain.
I was a total loser in my Econ classes, so I don't know if that's the best prescription. I do know that our society is going to have to change. Repentance over our collective greed might be a good place to start...
3 comments:
We're huge NPR junkies over here too. I keep thinking we should donate to them since we listen every day commuting.
I keep hearing pundits say things like "We need to stimulate the economy so people start spending again" and that makes no sense to me b/c the spending people were doing before was money they COULDN'T afford, funded via home equity loans/credit card debt/overspending and undersaving.
Now, looking at how Japan handled its crisis in the 90's the high rate of saving and low spending DID create economic problems so while on a personal level it's good, if everyone in the country followed Dave Ramsey and cut consumption of everything but basic needs that would crash the economy in a terrible way.
I do think some of the solution is to start producing more and selling it locally here in the States to help reduce the trade deficit - that is one key factor in recovery IMO.
In some ways I feel insulated from the economic issues b/c our family is doing really well right now - our jobs are secure, our fields are secure, we've got some savings. Our parents are struggling more than we are, but in our own daily lives nothing has changed from a year ago except all the fear others around me are feeling.
Thanks for the video Kindra. It is fascinating.
I too have been think repentance is in order. What do you think that might look like?
http://mattostercamp.wordpress.com/
Excellent video, thanks for the post.
Produce more. Save more. Spend less.
Doesn't this just make sense?
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