Most things in life are less complicated than people, especially politicians, would have you believe. There are some simple points that will help you clarify your thinking about proposals.
- The government has no money of their own. All their money used to belong to the people. Except for debt. That is money they will be forced to take from the people some day in the future. Like deferred taxes.
- There is no such things as “The businesses will pay.” Businesses never pay. Their customers do. Henry Ford knew this a hundred years ago. “It’s not the employer who pays the wages. Employers only handle the money. It’s the customer who pays the wages.”
- To wages, add payroll taxes, the cost of regulation, the cost of working standards, energy and income taxes. Governments like to make other people seem to be the bad guys. The government imposes costs and regulation, no one else is responsible for your loss.
- There is no such thing as a fair tax that pays for something that is not required or could be done cheaper some other way.
- You can only spend a dollar that you earn once. Credit cards and cheap debt create an illusion that denies that reality. There is a fundamental difference between earning money and getting money.
- There is a conflict between “future you” and “present you” Find a way to balance your lifestyle over time. Over-saving is as serious a problem as under-saving.
- Economics and all planning is based on the premise that resources are scarce and must be efficiently allocated to the most important projects.
- No one knows it all and even if they did, by the time they counted their knowledge most of it would be obsolete. Experience without current context considered, is over-rated.
Simplicity is an enormous virtue in any life plan. It is usually difficult to cut through the spin, but once you become a skeptic, most things begin to make sense. If enough people did it, life would be easier.
The trick is to stop short of cynicism. That is becoming increasingly difficult. As Lily Tomlin has said:
“No matter how cynical you become, you cannot keep up.”
Look for meaning instead of details.
Don Shaughnessy arranges life insurance for people who understand the value of a life insured estate. He can be reached at The Protectors Group, a large insurance, employee benefits, and investment agency in Peterborough, Ontario. In previous careers, he has been a partner in a large international public accounting firm, CEO of a software start-up, a partner in an energy management system importer, and briefly in the restaurant business.
Please be in touch if I can help you. firstname.lastname@example.org 866-285-7772