Saturday, November 20, 2010
GOB (Good Ole Boy) Economics
I have undertaken to write this blog for the purposes of translating complex economic concepts expressed by eggheaded, intellectual pontificators, and other such offenders, for the benefit of people who actually have a life. The cause is noble since these issues effect American families in profound ways and will only become more important as the financial crisis matures. But I want to take a pause and reverse the flow of information. Hopefully the intellectual pontificators will muster the humility to learn a thing or two from the “folks.” Somehow I doubt it but here’s my attempt.
As the Federal Reserve embarks on QE2 (the second round of printing money on a historically massive scale) the time is right to apply some common sense thinking the eggheads and intellectual pontificators would do well to consider. Sometimes those charts and graphs mix with other academic accruements to garble the obvious. There are a few principles any “good ole boy” (GOB) could share with these “masters of the long words” which are pretty darn profound.
First, any GOB can tell you that nobody gets something for nothing. Although your average GOB doesn’t understand the actions of the Fed, he could tell Fed chief Bernanke that trying to bail out the US economy painlessly by printing money ain’t gonna work, at least the way you think it is gonna work. If you give something to somebody you’re taking from another. GOBs know there ain’t no free lunch. GOBs wouldn’t be buying into the line that when inflation rears its ugly head a masterful exit strategy will make all this free money disappear painlessly and we will all live happily ever after. GOBs know better than that to their credit, and to the discredit of those making monetary and fiscal policy.
GOBs know there comes a time to “man up” and take the medicine when a screw up happens. Bet on the Cowboys to win the Super Bowl when Tony Romo gets hurt means its time to pay up. GOBs hit up the boss for some overtime or sell the bass boat. Wall Street, our government and the American consumer pushed in all the chips betting on the US the real estate market and lost. A GOB would know its time to “man up.”
Economic theorist and intellectuals refuse to accept these common sense truths. GOBs know that inevitable consequences are less painful faced sooner rather than later. We face a crisis of leadership in America. We have no one out there willing to lead us into the pain we are sure to suffer. Where we as a country need to be is on the other side of this pain; and there ain’t no detours. Americans have a choice: deal with it on our own terms or have our responses dictated by events.
Unfortunately our country’s decision makers are politically unable to be proactive. Every GOB knows Congress is broken. Every GOB also knows that the worst possible time to be making important decisions is when the heat is on, mistakes are bound to happen. America’s dysfunctional way of conducting its affairs is not sustainable and these hard choices are soon to be forced upon us. Something tells me the GOBs will be more prepared and less surprised than the brainiacs who stare at the situation day after day. GOBs have a life.
(Note: the word “ain’t” is listed in the GOB dictionary)