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THE PSYCHOLOGY OF THE DEBT CEILING.

August 1, 2011

The US economy and your family finances are similar. Both you and the government have income and expenses. Both you and the government have more expenses than income. Both you and the government have to borrow money to cover the difference. Both you and the government have to pay interest on the money you borrow. Both you (most people) and the government (most administrations) pay a higher interest on the money you borrow than you need to because you don’t know how to trade around. It’s not your fault.  You as the economic chief of your family and government economists were not trained in behavioral financing, your education was in substandard local schools and colleges and rigid  government economists came from Harvard and the University of Chicago, trained only in Classical Economic Theories. Are you and your government differ in some ways?

The government voted to have a debt ceiling so it won’t overspend your money and be punished on election day. Government officials are not as psychologically secure as you are. They know that they will behave irresponsibly and need to cap spending. You don’t. Both of you don’t live within your budget means but you have more control over your money because you earned it. Government officials spend your money, not t and therefore they need to restrain themselves with a debt ceiling!

The solution is to go back to school and teach a financial  C-MOR educational program for 5 levels of education: elementary school, high school, college, graduate school and Ph.D. program. I will help you for free. Find what C-MOR is on my blogs. Get to work to better your finances and your government’s.  Most of the world doesn’t have a debt ceiling because they don’t spend a lot of borrowed money on things you don’t need! Elect representatives that promise not to spend your cash on things you don’t approve of such as wars, keeping American troops in Europe, hiring government employees that do nothing, duplicate services, using your money for trips and vacations, giving foreign aid to countries that hate you, and hiring Harvard economists not trained in behavioral economics to run the economy!

As Barack Obama said about changing, “Yes, we can,” we all need to change but not the change that he has created in the last 3 years! You, the great American people can balance your budget. I am confident and optimistic for the future hegemony of the American Dollar in the world. Read the section on Americanism in my books.

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