Everything I’ve read and heard about this huge economic downturn attributes the mess in large part to people doing stupid things with credit. I’ve read more than a few stories about waitresses, dental hygenists and administrative assistants* getting lured into house flipping, only to find themselves staring at million dollar losses and complete ruination. All from credit–from believing things that are impossible, like that the market will never turn.
And now the President Who Can Do No Wrong seems to think that we can fix these problems. By putting the nation into debt. By doing…stupid things with credit.
The Congressional Budget Office figures, obtained by The Associated Press Friday, predict Obama’s budget will produce $9.3 trillion worth of red ink over 2010-2019. That’s $2.3 trillion worse than the White House predicted in its budget.
The latest figures, even worse than expected by top Democrats, throw a major monkey wrench into efforts to enact Obama’s budget, which promises universal health care for all and higher spending for domestic programs like education and research into renewable energy.
As warm and fuzzy as those ideas make most people feel (I personally could have a very expensive heart attack whenever someone mentions government-sponsored universal health care), it is clear that we can’t pay for it. The government is less able to pay for your health insurance than you are. That’s what those numbers mean.
So why, when we know that this mess was born out of credit abuses, are we trying to fix it by abusing credit?
What am I missing?
* I’ve been remiss in writing up a post on this because I haven’t completed all the research I want to throw at it. But in all of the numbers I’m getting while researching it seems to me that something missing from the equation of the downturn is how anti-woman the whole thing was. By the time the market was starting to turn, investors already spread thin by risk were bringing on non-traditional risk-sharing partners. That means that single mothers with passable incomes and good credit were lured by the thousands into the increasingly dangerous flipping schemes right at the end game. Some of those worst hit are those who could least afford it. There’s a story there begging to be told in the right way.