The latest political news focuses on whether or not Congress will raise the debt ceiling in order for America to be able to “pay its bills”. Most people who actually know something about the economy say that on August 2, 2011 America will NOT default on loans like most of the media is predicting. Some say that it is a strategy used by Republicans (who currently control Congress) to help put fear into Americans, thus making them vote Republican in the next Presidential election. You probably heard a bit about their plan to “cut, cap, and balance” and there is no denying that America needs to do something, and ideally do something soon. What really annoys me with politicians is the fact that they make things so much harder than they really need to be. I will never understand why they cannot just look at the facts and make a logical/responsible/reasonable decision that will benefit the majority of the people. It is impossible to please everyone, but it is possible to please almost everyone if you make decisions that actually work. I know I hold politicians to a much higher standard, and I do not think that is wrong. Is the idea of making decisions that benefit the majority of the people utilitarianism? Yes, and so what?
A friend of mine recently started his own blog (http://seekingalpha.com/user/959866/instablog) and it is going to be focused mainly on finance and economics. I asked him to do a post for me explaining the current situation in Congress and he created the video below.