Sunday, March 1, 2009

A Third of Baby Boomers Underwater on Mortgages

Aside from all the specific meta-economic problems that are at the root of our current Depression, there is a profound philosophical one: shift responsibility. Specifically, the idea that you can shift responsibility onto future generations.

Savings, for retirement living and health care, are a basic necessity of life, yet our government has promised that it will take care of it. The bigger government has gotten, the more confident people feel in the promises of government, and the less likely, and less able, they became to save on their own.

But what does it mean to rely on government for retirement and health care, especially when financed by debt? What that really means is that they will impose it on the people to come, the future tax-paying citizens.

But what if the future people don't want to pay it?

It is morally wrong to sell your children into slavery. Yet by building up all this debt, and all these unfunded mandates (like social security) that is exactly what they have done. They have promised the wealth and labor of future generations for their own benefits today. It is outrageous, when you realize what they are really doing.

I got news for ya. The future generation is here, now, and we aren't going to settle for it.

The baby boom generation, which had so much to do with the expansion of the liberal socialist state, is now seeing their lifetime accumulated capital disappear, like a puff of smoke. Their investments disintegrating, now, even their home values negative. And their main response is to take out more debt, i.e., pile it up higher on the back of their own offspring.

With almost a third of them now underwater on their mortgages, maybe they will be more open to thinking about some economics truths, which their socialist politics have been in denial of for so long. Let's not forget, these numbers are going to get a lot worse in the coming year.

The unthinkable of yesteryear is the inevitable of today. More and more shall welcome the good news of Jubilee. Just like in religion, only those who hit rock bottom, who have been fully convicted of their sins, are open to the best of all good news. And the first step towards recovery is always the same: take personal responsibility.

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