Will higher Taxes Create Better Economics Theories

I recently I have heard it suggested that only raising taxes could motivate people to spend responsibly I guess the premise here is that  if people pay higher taxes they will have less money to spend, less money to spend would mean Americans make smarter financial decisions. Unfortunately in my opinion raising taxes will not work. First of all our economy only does well when Americans have money to spend that is why the government and financial companies encourage Americans to spend.  As soon as people  (consumers as the news media likes to call us) stop spending the economy collapses we just saw this.  Raising taxes will do nothing but thrust the country further into socialism as people stop spending to pay there out of control taxes businesses will fail small and large putting more people out of work, out of work people don't spend money so more businesses will fail.  Finally  the government will continue to raise taxes and bail out failing industries a broken and demoralized country will be calling for change (does any of this sound familiar) and since the government has all the money they will step in and begin to take over industries instead of regulating themselves they will regulate there citizens. But don't worry in the past before this has happened the governments either collapseor is over thrown due to
over taxation. So no I don't think that raising taxes are a good idea. I do however think that the American people need to borrow less money  and save more for there future we need to stop viewing credit card debt as a normal way of life and begin to spend cash.  Only spending cash when we have it to spend and only when we can safely pay our other obligations food, clothing, utility, mortgage. Mean while  the government needs to continue to regulate the credit card and mortgage industries to stop targeting high risk borrowers and when I say regulation I mean make there current business model unprofitable force big  business  to promote financial responsibility to turn a profit.  Once the banks and credit card companies  are encouraged to promote financial responsibility and the population of the country realizes it is better to spend responsibly the country can begin to correct its self financially. As finances effect all of us I would really like to here your opinions regarding this issue please feel free to leave a comment.    

You May be in Financial Trouble If

1. To reduce credit card debt your goal is to get you credit balance under $35,000.

2. Your brother in law who because of Jeff Foxworthy thinks he might be a redneck is your financial planner.

3. You never had an impulse to spend that was ignored and your credit report can prove it.

4. You believe whole heartily that the best way to lower your credit card bill is to apply for a new card and pay of the old credit card with the new one.

5. You have done the above example more then once.

6. You cant figure out why Donald Trump can borrow money and become a billionaire and you can't, but you keep on borrowing any way because you think that sometimes dreams do come true.

7. You purchased a car and a house in late 2007 and the combined monthly payment  is more then your take home pay for the month.

8. You are not sure if you should sell your car from the above example so you can pay your mortgage on time.


And finally You May be in Financial Trouble if

9. Planning for for your retirement some how just doesn't seem important right know but planning on borrowing money for a bigger and better present life is of major importance.


Although this post was my attempt at humor there is also a lot of truth here. If you or anyone you know is struggling financially you should seek out qualified counseling and begin to change the way you think about your finances. One of the best resources available today is Dave Ramsey I highly recommend  his financial philosophy to. As always plaese leave a comment and let me know what you think about this post.

Whereeeeeeeee Baaaaaack Credit Card Mail Solicitations Increase 29% from a year ago.

We are just getting settled in from the worst financial failure since the depression Americans for the first time in years are saving money and educating themselves financially. Credit card debt is no longer considered a way of life there are bills in the senate to promote the use of cash .  You are succeeding with your financial plans and goals.  Your feeling pleased with yourself,  I am happy for you and the banks and credit card companies are really excited.  Why are the banks and credit card companies excited because you are starting to build wealth your starting to regain what financial folks would call consumer confidence and that means it is time to separate you from your hard earned well deserved nest egg. They will do this with a media blitz when you blitz someone  you want to over whelm any or all of the five senses there by taking away the subjects(YOU) ability to think and act for themselves.  Feel this at work the next time you reach for your credit card it feels good it feels right that my friend is the power of advertising and it has lead to the financial ruin of many.  So my advise to you is simple! ignore the mail offers which will be flooding your mailbox don't even read them it is not in your best interest.  If your watching TV and a commercial is airing remember the advertiser is trying to help himself more then you remind yourself that you will not be persuaded.  Save your money now spend cash later on your grandchildren when you have more then you need don't settle for being content in the moment strive to be satisfied and rewarded for life.

Just say NO to Predatory Lending

It is very simple if people are considered high risk they shouldn't be eligible to receive a loan I think this makes good sense and all logical thinking people like us agree with this statement.  More to the point  if you have trouble controlling your spending you should learn to spot the predatory lenders and stay away. It is not there responsibility to avoid you it is there job to find you and make you an offer you should refuse. The most common sign of a predatory lender is risk-based pricing  this is when they charge you higher interest rates and up front fees for a small credit limit. In reality most of the risk is passed onto the customer due to the fees that are involved and the higher interest rates.  When you think about it if you have the money to pay a higher interest rate and the up front fees then why do you need a credit card and if you don't have the money to pay the up front fees and can't pay off your credit cards then you don't need a credit card. either way it is plane to see that a credit card is not needed.  this is not normal thinking I know normal tells you to borrow what you need and then keep on borrowing the problem is you can't keep borrowing money it does not work for governments and it won't  work for individuals eventually there will be a collapse.  In the end it is better to stay away from lenders stop listening to companies that want to sell you there products and don't let them do your thinking for you and start thinking for yourself you will excited about how much money you save no one is going to look out for your best interest more then you. 



 

Choosing Financial Freedom

Please understand, if financial freedom was easy, more people would be well-off. There are powerful forces working against you from outside and within.  Fast cash and instant gratification being two of the worst, versus slow and steady saving.  Fast cash feeds your ego and makes you a servant to the lender.  If you're not careful, it can bury you under a mountain of high interest debt.  Slow and steady savings builds your confidence, raises your self-esteem and, if done correctly, will liberate you from the oppression of the debtor.  You can try to continue playing 'dodge the collection agent' but this seems like a hard way to live...or, you can get seriously motivated and go out and begin to change your way of thinking about money.