I’m not a fan of the government having to bail out our Financial Institutions. I believe that this could have been avoided if better choices were made, and our government admitted we were in trouble long before it became the current mess. Normally I would be against the government using tax payer money to come to the rescue of financial institutions. However, I’m completely aware that without the bail out, our Market may fall further into disrepair.

So how does this effect the average American? Okay so let’s say my back folds. Back when the stock market crashed in 1929, I would have been screwed. The banks did not have enough money, and people panicked and withdrew all their funds. If you didn’t get to the bank before they ran out of money, you were out of luck. Because of that mess, Congress created the FDIC in 1933. That means that my money, up to $100,000 per institution, is insured.

Let’s be honest, most of us will no have more than $100,000 in any particular bank. That means that we don’t need to run out and withdraw all our money, like some people think. Others know about FDIC, but think that the coverage is unlimited. They don’t know about the $100,000 limit. At any rate, our money will probably be okay.

What worries me are the business that have more that $100,000 per institution. They are at risk. These are places where people work, and places you do business every day. If they cannot access their money, or gain access to more credit, there could be trouble. Of course there is the stock market. This is a scary time for investors. Retirement Plans, 401Ks, and all things investments are looking scary. I had a friend refer to the NYSE as looking like a Kmart Blue Light Special.

In a way he’s right. Everything is way cheap right now, but the question is can you find the treasures? If you have the money, and you pick the right stocks, you might actually come out ahead when the market rebounds. That might we a while, so it could be some time before you know how you fare. People who already were invested, are wondering about their futures. Will they be able to retire? Will they have to change their plans? It is a huge mess, and the less informed people are about the situation, the more dangerous it becomes.

]]> http://www.culturefeast.com/knowing-about-your-money/feed/ http://www.culturefeast.com/a-laymans-questions-about-the-us-economy/ http://www.culturefeast.com/a-laymans-questions-about-the-us-economy/#comments Sat, 11 Oct 2008 04:07:23 +0000 Daniel Dessinger http://www.culturefeast.com/?p=1536 Every day, I'm reading of stock market losses. 200-500 point losses each day. This cannot be good. And yet, I must admit I don't understand the how and why of it all. And I don't really have time to do the research necessary to grasp it well.

Before you judge, I am very busy with work, baby, and family. I get maybe an hour to myself each day when I'm not in traffic, and I typically let myself watch a show i've missed on Hulu.com. So I have a few questions that hopefully some of you economy pundits out there can explain to me. They're very basic questions, but questions I bet many people don't know the answers to.

1. Why does the stock market keep dropping each day? I understand that the $700 billion approved can't just be applied overnight. I've heard that companies cannot get loans right now. Is that what the continued drops are all about? The lack of loans?

2. What will/could happen to the economy as the $700 billion is applied? Will that actually change the direction we're heading?

3. Why aren't more people talking about peak oil? America seems so vulnerable right now that it concerns me how few people know anything about oil except whether the price per barrel is currently up or down.

4. What is the technical definition of a recession? Is that where we are presently?

5. What is the technical definition of a depression? What does it take for the U.S. to go from recession to depression?

Comments are welcome.

Anonymous

Dear Anonymous,

The most difficult thing to do in life is to find your happiness. Considering that we spend approximately 33% of our lives sleeping and almost 25% of our week working, it's no surprise that so many people are dissatisfied. Most of us spend our childhood having our families tell us that we "have to go to college" and "have to get a good job". More often than not, we are given the directive but no real plan of action.

I was given the same orders growing up. So, I hurried up to get out of high school and go to college. Unfortunately, it wasn't long before I failed out. My performance had little to do with whether or not I was smart or if I could apply myself. It had everything to do with my inability to see the benefits or the necessity of a college degree. A big part of it was that I just wasn't ready to accept the slice of working-class pie that the world is offering.

The best advice I ever received from my stepfather was when he told me, "they don't call it work for nothin'." Truer words have never been spoken. If it was supposed to be fun, it would be called something else. It's also the reason that we often feel that we were meant to do other things in life. I don't know about you, but I didn't grow up dreaming of becoming a desk jockey. (On a side note: I never dreamed of becoming a writer of an advice column) I dreamt of being an artist. I wanted to be the next Picasso or Rothko. And in a lot of ways, I still do.

At the same time, I need to be able to keep the lights on and food in the refrigerator. So like most of us, I walk the tightrope of life. It's a hell of a balancing act to maintain. Every day, I want to get up and walk out but I don't. I have to allow myself my moments to dream of setting my desk afire and feeling the explosions at my back. Then my phone rings and I am back to reality. I'm back to giving my all (well, 70% or so) to a company that doesn't appreciate me as much as I wish that they did.

I'm right there with you buddy. I feel your pain brother. I'm willing to bet that like me the money was the worm on the hook. And just like the fish on a fisherman's line, it sucks to know that every moment of your day you feel that you are being reeled in. When income is a driving force, it's incredibly difficult to break free. Money doesn't buy us happiness, it gives us options. More often than not, we choose the option that will provide the most positive feedback from our peers.

That's the reason that we buy 80" HD Televisions, 3 mpg mammoth SUVs, and 6 room houses that we can't afford to furnish. We choose a lifestyle that solicits the WOWs. It makes us feel warm and fuzzy inside. We become WOW junkies. We have to continuously go bigger and better to feed our addiction.

Like any addiction, we generally know what is going on, but we feel powerless to overcome it. We make excuses for why we can't break away. For you, it's that you have bills to pay. For some it's because of family obligations. Still for others, it's lack of education, training, etc.. At the end of the day it's just excuses. The reality is that we're always going to be in debt in some manner or another. What happens when you pay off your student loans? Sure, you might save a little or you might start applying this newly freed up income to your mortgage or car note; but more than likely, you're going to find something else to spend it on. That's a way of life.

There are really only two options that I could recommend if you truly feel that you have a greater calling. The first is to spend the time doing a little soul searching. Find what it is that you would rather be doing. Maybe you make a list that you can post on your bathroom mirror that you can look at every day. There is a good chance that you already know what you want to do and you just need to spend the time figuring out your plan of action. One key step to include in your plan of action is to learn how to live leaner or find ways that you can start surviving with less income.

This may be as simple as brown-bagging it for lunch and cooking at home, or it could be that you have to break out the scissors for your credit cards. Nobody said it was going to be easy, but it is definitely going to be worth it. The other option I'd propose is to slip on your jockstrap and take the leap of faith. By forcing yourself into a crisis, you are given the opportunity to get the most out of yourself. The instincts take over and you are not given the chance for your brain to out-think itself.

It's not easy to find all of the pros when your life is constantly pounding you with the cons. Overcoming the fear of all of the consequences that a life change presents is in itself a monumental achievement. So let me present you with one question: Do the consequences of making a life change outweigh the consequences of living a life that is devoid of real happiness?

One key thing to remember is that your biggest allies in any life decisions will always be your family and friends. They will always support your choices when it comes to you finding your happiness. Don't be afraid to ask for help and for their support. You'll be surprised at how much strength and courage they can provide. This is because we all find happiness in seeing those close to us succeeding. In a way, seeing your friends succeed is in itself a small win for us.

Life is always going to be the 800 lb. gorilla on your back. It will always be the rain cloud over your head. But it does not mean that you can't make a change and do what you need to do to find your happiness.

Anonymous, I thank you for your question and I wish you the best of luck in your life. Please keep me posted and abreast of your progress. Don't be afraid to take the road less traveled. Succeed or fail, you've got a life lesson ahead of you.

Fix-it Nix can be contacted via email (nixjohnson@hotmail.com)

The listless parakeet really made me worry. I got her out of the cage and she perked up and little as she sat with me. Then I thought she might be hungry. She did not like the pellet I fed her, and maybe that was the issue. I gave her some millet and once again she perked up, but that only lasted a minute. Then it happed…she had a seizure. I’m guessing she had one while I was gone, and that is why she was at the bottom of the cage. She couldn’t stand on her own and she was becoming non responsive.

Had I been at home I would have rushed her to my vet. My mom and I had to find an avian vet that was open after four in Toledo. The Emergency Vet said they would see her, and we took off. She had another seizure in the car and then two more at the clinic. At that point in time, I wish the vet had just been honest with me. She told me that Chloe did perk back up after the last seizure and there were some treatments she could try. If I went that route she would have to keep her for at least an hour to see if they worked. Actually, she had already started the treatments. Based off that statement, I agreed to hospitalize her.

Now I wasn’t thrilled that she had started the treatments without my authorization, but since she had I figured maybe there was some hope and I really did need to do everything I could to save Chloe. My mom and I went to the Starbucks down the street (they do not live in Toledo proper so we were not driving all the way home) for an hour and then I called the clinic. The receptionist told me Chloe was fine, she hadn’t had any other seizures and she was sleeping.

As soon as I hung up, I knew something was wrong. I told my mom to take me back to the clinic. I wanted to talk to the doctor. Once we got back, I had to wait another half an hour before the doctor came out to see me. I asked her about Chloe’s actual condition. She told me Chloe was sleeping and hadn’t had another seizure, but really there had not been a change in her condition and she was still in bad shape. That statement set off red flags. If she perked back up after the last seizure, why was she in such bad shape? That is when the doctor admitted she really didn’t come back around after the last seizure, and she was pretty much unresponsive.

They had given her a valium shot to keep her comfortable (treatment I had not authorized), but that could wear off at any minute and she would probably have a seizure again. Actually, it was quite probable she wasn’t going to make it through the night. I knew what I had to do. I had to have my little baby girl put down. When I said good bye, I knew she was suffering and I couldn’t let that keep happening. She was happy with me and I know she knew she was loved.

This brought up two interesting points about human nature. As I sat in that animal clinic, people kept streaming in with their pets. One family had even driven from farther away that we had to get their pet treatment. Each pet had a different story, some were puppies while some had been with their owners for years. No matter how long they owned their animal, that bond was there. They loved their pet so much they were willing to bring them to this clinic and do all they could to make him or her feel better. They loved their animals like children, and I think that is appropriate. Since I rescue birds, I often times just get to see the bad side of pet owners. It was refreshing to see the good side.

The other point was the extent of human greed. I’m sorry, but I can’t totally stand behind the fact that that doctor did what was in Chloe’s best interest. If she knew that the damage was done and my Chloe was pretty much gone, she should have told me. She should not have said she perked back up after that last seizure. She should not have given her treatments I did not authorize. When I got my bill, I looked at my charges.

The exam really wasn’t that much. She did run a couple tests that normally would have been included in the price of the exam that I did not authorize, but I could forgive those because we needed to know if Chloe was contagious. However, had she just been honest with me and not started the additional treatments with out my okay, the bill would have been at least $100 cheaper.

Some people might contend they she was just trying to give Chloe every chance, but the fact remains that she lied to me. Had she told me the truth I never would have hospitalized her and I would have contested the treatment she started. It just is suspicious to me. When they tell you upfront that they will give you an estimate for any treatment beyond the exam, and then fail to do so, that seems a little fishy.

If Chloe was suffering and would most likely die in pain, the only reason the doctor would have lied to me is to get me to pay for additional procedures and her hospitalization. That is unforgivable.

However, with the recent presidential election going on right now in the United States, (yes, I am completely disregarding the upcoming Canadian election) I cannot help but stick my nose in this business, and here is why. It is pop culture if it's anything.

Coming from a pop culture background, I am feeding upon all the spoofs and satires that are appearing in the media. I may not know much about US politics, but I certainly know that not many people are taking the election seriously.

Take for example the song that Wil.i.am put out using Barack Obama’s speech. This instantly sent Obama into the pop culture stratosphere, and he had nothing to do with the making or distribution of the song.
I was surprised as you were that Jo Biden was selected as the VP running mate over Hilary Clinton, because quite frankly, I assumed she was a shoe-in.

John McCain claimed that Obama was only a celebrity, compared him to Britney Spears and Paris Hilton. What was the rebuttal? Paris Hilton creating her own mock campaign message that, like Obama, kicked up his pop culture credibility another notch.

Then, there is Sarah Palin, who is almost like a parody of herself; unintentionally funny and often times tragic. Her public speaking ability is laughable; her debating skills even worse. It was McCain who accused Obama of being a celebrity, but that has come back to bite him on the ass, as Palin is the celebrity. The selection of Palin as his running mate was intentionally sensational. Palin was literally plucked from obscurity and thrown into real world politics by McCain who (in a vain attempt) is trying to appeal to the female voter.

Palin has instantly become a pop culture icon, which has taken away any credibility she may have had. She is on the cover of gossip magazines as a result of her 17 year-old daughter’s pregnancy. She is being mocked on Pundit Kitchen. Most notably, Tina Fey’s offers herhilarious (and dead on) impression of the VP candidate on Saturday Night Live.

Being popular (or infamous) with the mainstream media does not qualify someone to be in charge of something very important, like say, co-running a country.  I am finding it a mixture of hilarious and tragic that people are in awe of this woman. She has displayed in her Katie Couric interview  that she cannot answer a simple question like “what magazines did you read?”. Or in the VP debate, where she selected the questions she wanted to answer by backtracking and speaking about things she was more comfortable debating. For me, warning bells are going off, and flags are going up. I do not know whether to laugh at the US population or be embarrassed for it.

I didn’t write this to attempt to sway voters, because my say means nothing. I can’t vote in your election. I would just suggest really listening to what each candidate is saying, asking, or promising. Listen to how they speak. Is it inspiring? Can you see that person in office for the next four years? Vote with an educated mind, not because a celebrity does a pretty good impression or because another is more popular amongst your age demographic. This time around, it really does matter.

Then the handlers kept Palin away from the press, fueling speculation that they were trying to protect her. Finally, the McCainiacs parsed her out to Charlie Gibson and Katie Couric for interviews—and it wasn’t good. She didn’t sound articulate, confident and like she had a firm grasp of what she was supposed to say. I found myself wincing as some of her answers to Couric’s questions. Sure, I thought the question about McCain’s voting record unfair. But Palin’s answer about foreign policy experience gave me pause. Then the poll numbers drifted down.

I watched the debates and I held my breath before Palin and Biden came on. I wanted so badly for her to do well. The question everyone viewing at home asked themselves was, “Which Palin will show up tonight? Will it be the charismatic one who made an appearance at the Republican convention? Or will it be the inarticulate one the media has been interviewing?

Both vice-presidential candidates did well, and I was relieved that Palin didn’t crash and burn. But Biden obviously had a better grasp of the issues.

So here is where I’m at. I’m more confused than ever about whom I’m going to vote for. I know where I stand on things, but I don’t see anyone representing me, and, it pains me to say this, but I have serious reservations as to whether the one person who I think could represent me is ready to be a heartbeat away from the presidency.

The rationale is this: Digg is making a play to increase its value to $300 million, and the best method they could come up with was to level the playing field so that more users could have more influence. So the word has gone out that at least the top 10 Diggers will be banned soon, with more to follow.

Many of you are familiar with Digg.com. It's a social news sharing site where you the user can post links to and comments on noteworthy articles and websites you encounter on the Web. There are dozens of sites now that fit this genre, but the most popular has been far and away Digg. The most popular alternatives are Reddit.com, Propeller.com, Mixx.com, and SocialMedian.com. Each site has it's own unique attributes, but the basic premise is the same:

1. Users submit links to noteworthy content
2. Other users vote those links and content up or down, based on whether they liked it.
3. Users also can comment on the posts, discussion why they liked or disliked or maybe just random observations about the topic.
4. The most popular content (has the most votes) rises to the top of the page, thus earning it more views and therefore sending more traffic to the websites linked to.

Because these power users are being uprooted, many of them will turn their focus to Mixx. If Mixx is the primary destination for these lost and roaming souls, you can be sure that it will become a household name in less than two years. Well, households that understand the Web and how to leverage it, at least.

Due to the poor business planning and treatment of its users, I strongly urge each and every one of you to abandon your use of Digg in exchange for one of these alternatives. Mixx is just simply the best looking of what remains.

**NOTE** I have been surprised since the writing of this article that many of those top Diggers plan to milk the system for all that it's worth until they are banned. I marveled at this upon first glance, then realized that this is what they do for a living. When your live revolves around sending traffic to sites via social media, you don't abandon your cash cow out of pride. You ride that horse until it bucks you off. In this case, literally.

So perhaps we won't be abandoning Digg just yet. But it has definitely lost respect and street cred. Mixx, StumbleUpon, and SocialMedian are my personal favorites, and the sites I will use most often for promoting content I discover that is worth sharing.

I know that traditionally you "go" to work. Yes, you actually leave your home and travel to another location. You have a pretty standard work day, and then you drive/ride home. When you work from home, you do all the things you would do if you had an actual office, but you do them from the comforts of your own home. That offers a certain amount of flexibility. You can adapt your schedule to be so much more than a typical 9-5.

However, you still have deadlines and expectations to meet. I think that is the part people just don’t get. If I have three articles and a blog with deadlines at midnight, and I have given myself five hours to get it all done, I don’t really have time to do anything else. I know it might just seem like I am at home hanging out, but I am really quite busy. I know people who work from home full-time, and they experience this on a much bigger scale. They may be able to take shorter days here and there. In many cases, they don't have to be up at the crack of dawn.

However, there are days where they work long hours to generate sales, meet deadlines, and complete their respective tasks. People just assume that working from home is a lot of vegging around the house, but many times it is time consuming hard work. In my case, I work four jobs, so I have to manage my time wisely. I have to set aside time to work on writing projects and for Cha Cha and stick to those timelines. Otherwise, I would always be behind. As my writing business keeps picking up, I am going to need to focus on this more and more. It isn’t “free” time and I can’t just drop everything to accommodate others.

So the next time you call a friend who works from home and they tell you they are busy with work, tell them you will call back later. The next time they say they can’t hang out because they are working, just say “Okay” and let them get back to it. Just because they are at home and not at an "office" does not mean they are not working diligently to complete their tasks.

Capitalism Presumes Risk
The very nature of free enterprise presumes risk. You are free to do your darnedest to create and build a successful company. You willingly assume the risks and rewards that come from such an endeavor. That's how it works. That's the only way it works.

Along the way, your company may grow to employ hundreds or thousands of people. You have then supplied hundreds or thousands of jobs. Good for you. Families are fed as a result of your entrepreneurial vision. But what about when your business fails? Hundreds or thousands of people lose their jobs. Investments in your company are lost. Why doesn't someone bail you out? Maybe because it's your company. Maybe because no one owes you anything.

But think of all the people who will be affected by the losses! Yes, think of them. But think of them when you are in the process of building the business. Think of how every action and decision you make affects the lives of other people. Think about how you can bless or curse your city by the way you handle your business. And realize that the responsibility of these effects lie squarely upon your shoulders.

But the entire country will suffer if this business fails! Yes, it could and very possibly would. That is the price of success - influence. You grow, you influence. These aren't new principles. And if the country is leaning too heavily upon unsound businesses, the country deserves every bit of trouble it receives when those businesses fail. Make no mistake about it, there is a consequence for every action. Consequences are not to be feared. They are the great equalizer and stabilizer. No, don't fear consequences. Rather, fear ignorance. Fear foolishness. Avoid them at all cost. Take more time to evaluate the companies you invest in. Ask more questions. Do more research. Evaluate each business from a moral and ethical standpoint.

Bottom Line: Know what you are getting into. If you make a mistake, accept your lumps and move on. This is the natural course of things.

The United States government has no business in business. They set rules and regulations. They do not rescue poor business models. To do so is to cross a line that will have terrible effects years down the road. The short and easy route to bailout does not seem logically sound. It is the reaping consequences of actions sown that affords us the insight, understanding, and motivation to live differently.

If you want a government that controls the fates of businesses, take a look at communism. I hear it's really successful and awesome.

Update

We have fixed the issue and you can now click the title of any post and continue reading the article in its entirity.

Thanks for your patience!

- Daniel

Check this out. Disclaimer: this is intentional comedy. Don't take this seriously. I'm saddened that I have to say that. As you were.

She makes her own soap because she doesn’t like the detergents and chemicals found in the bars you buy at the grocery store. In other words, Barb is an independent, do-it-yourself kind of woman who is mistrustful of many things most people think are okay.

Barb was over at my house a couple of weeks ago to instruct me in the ways of soap making, my newest hobby. I’ll let you insert your own Chuck Palahniuk joke here. Eventually, the conversation turned to politics.

“So who are you voting for?” Barb asked.

“I’ll probably vote for McCain. There are some things I don’t like about him but he’s closest to the way I want to see things run.”

“If you don’t like him, then why are you voting for him?”

“It’s either him or Obama and I disagree with Obama on more things than I do McCain,” I said.

Barb said, “I had this same conversation with a co-worker. If you don’t like who you’re voting for then you’re part of the problem. Vote for the third party. People in Washington keep expecting you to pick between the two parties and they aren’t going to straighten up if you keep voting for them. My co-worker told me I must like throwing my vote away. But I don’t see it that way. I think it’s throwing your vote away if vote for someone you don’t like. Your true voice isn’t being heard.”

Not surprisingly, Barb is a big Ron Paul fan (I think she may have done work for his campaign and/or contributed money to him) and plans on voting for him in November.

We talked about other things. She plans on having her house paid off next year because she thought the economy is too uncertain (she called that one). And she told me about the study done in Australia where eighteen women died after getting the HPV vaccine (“The vaccine just protects against four strains of HPV out of a hundred different kinds. It’s just not worth it to me.” she said.)

I love talking to Barb and I admire her a lot. She has her ideas and convictions and she sticks to them. That’s something you don’t see very often. More importantly she always gives me something to think about.

As I listened to him talk, I began to critically think about his TV watching habits, and how his viewing choices created this image in my mind. Eventually it made me think about my DVRing habits…

In the past Week (yes 7 days) I have recorded:

1) NCIS

2) The Mentalist

3) Friday the 13^th the Series

4) True Blood

5) Blood Ties

6) Kindred the Embraced

7) X-Files

Without a Trace

9) Cold Case

10) My Boys

Check with me in a week and I *might* add Ugly Betty to the mix. I haven’t really decided if I like that show and if I do if I like it enough to record it. If Without a Trace continues to play its B Game, it is off the list, and I haven’t actually watched The Mentalist yet. Of course Scrubs will be added once new episodes air.

If you just looked at the list, what you could tell about me. Well aside from my slightly obvious thing for Vampire shows, I think it says a lot. What we chose to watch or in this case record to watch often times creates a pretty accurate snapshot of who we are. It tells people our likes and our dislikes. Even the shows that we don’t want others to know we watch give people little insights about us. It show people what we really do like when others aren’t looking.

After reading this list, my naming my new parakeet Mina (as in Mina Harker) will make more sense. You know...the corporate goth, just one of the guys, with a dark sense of humor, who falls in love with series that are quickly cancelled....and the list could go on and on. I watch these shows because they in some way I can relate to them. Whether it be great writing, a storyline I can get into, or literally relate to a character I see a part of me or something I hold in high regard. I’m beginning to think that maybe it is true in most people.

Yes I know, there are some people who will argue that people are like cattle. They are so media illiterate that they will watch whatever slop the powers that be put on the air. Admittedly, I cringe at the masses who watch reality television and think it is the best thing since sliced bread. However, their choice to watch those shows does say something about the person. It isn’t always a negative thing, but it still says something.

If I looked at your recording list, what would I find? What would it tell me about you?

My family was very lucky. The fire department was able to move and protect several large antiques get the truck our of the garage and really it could have been much worse. When you look at the house, you would think that most everything inside was destroyed, but luckily that wasn’t the case.

I learned quite a bit about people from this whole mess…

1) Apparently, some people think it is okay to kill weeds with a torch. Seriously? Yes apparently the chemical killer just was taking too long. Now I’m not sure if the gentleman in question just came up with this on his own, or if this is common practice in some places.

2) Some people will still try to play the hero role, even when it is very obvious they are at fault. The gentleman who started the fire kept singing his own praises because he ran into the house to get Rachel and Ross. Yes, he did rescue the birds, and yes we are very grateful, but the birds would not have needed rescuing if he had not set the house on fire.

3) Myspace is literally keeping my extended family together. All of the cousins are on Myspace, and they check their account’s regularly. All I had to do is post that there had been a fire at the parents’ house, and my cousin Nikki saw it and told her dad. My dad was getting calls from his family within the hour. There was not a need to make tons of calls, one status update informed the whole family.

4) Our friends usually show their true colors in time of crisis. It really wasn’t my crisis, but people really surprised me. Yes, I mean they surprised me in a good way.

5) It takes more than needed three fire departments on the scene to make the Toledo News. Really it does…you would think in that small of a market they would have jumped all over it.

6) Firefighters can minimize damage to property (if they can get into the house) with fire tarps.

I think the most important thing I have learned from the fire was really more of a reminder. The fire chief initially told my mom and sister the Kitchen Garage and Living Room were gone. The fire was to hot for anything to have survived. The clean up crews and professionals look at the charred garage and roof and think the fire was a total loss. However, once they got inside you see another story. You saw and antique cabinet filled with Havilland China the fire department was able to wrap in a fire tarps and move to safety without breaking a single dish. There was other antique furniture moved out of the flames reach and covered to minimize water damage.

There are huge holes in the ceiling, but the damage to the items in the house is mainly from the smoke. Actually the only thing that was totally destroyed was Rachel and Ross’s play gym. Actually, it wasn’t destroyed by fire, but it was trampled by firemen. Yes, my parents will find other things that it really isn’t worth to effort to salvage (and really I think my sister is going to use this as an excuse to do away with parts of my parents’ wardrobes), but the only total loss was a $25 Bird Gym.

Yes, it looks ugly on the outside, but once you take the time to look inside and put things in perspective, it really isn’t that bad. Once you get past the appearance, and dial down the drama, it still sucks and it isn’t fair, but it isn’t hard to see that things will be okay. Most things are like that. From the outside it is just “hot mess,” but once you calm down and really take a look at it, really isn’t that bad and it could be much worse.

The first and probably the most important one is our current tax code. Our tax system has been written in a way that makes it confusing and I believe that it is done deliberately.  No one likes to pay taxes and we all wish that they were lower, however, there are some government programs that are essential and without tax revenue it would be impossible to fund those programs.

Generally speaking there are two types of taxes that are discussed, a progressive tax or a regressive tax.  A progressive tax is designed to tax you more as your income goes up.  The value of a progressive tax is that it dramatically lowers the amount of actual taxes paid by lower income workers; the draw back is there are all kinds of rules that make it more complicated.

A regressive tax such as a flat tax or national sales tax is much easier to understand and would be fair. The draw back on a flat tax is while it is fair in a true sense of the word, it hurts lower income workers more then it does anyone else.  Someone who makes one thousand dollars a month paying one hundred dollars a month is the same as someone who makes ten thousand a month paying one thousand.  However, to the person making just one thousand a month most of that money goes to essentials so in reality it is not as fair as it would seem.

Here is the dilemma, on one hand you have a tax system that is overly complex, in the other hand one that is simple and easy.  But, in one hand you have a tax system that helps lower income Americans while the second one is more of a burden.  If only there was a way to get the best of both.  In my opinion there is and this is how I would do it.

First, get rid of all deductions and I mean all.  Give money to a church, great social institution, no deduction.  Pay interest on a home, good to own a home long term (despite what is going on right now), no deduction.  Invest in some crazy off shore company that does who knows what, I would stay away from it but who am I to judge, still no deduction.  Everyone loves their deductions and many people do a lot of dumb things to get one, in the end, you are always better off not spending the money on what ever it is and paying more taxes if your aim is more money in your pocket.  If you give money, buy a home, or invest in something, taxes should be the last reason you do it.

Second, redefine income, it is not fair that some people pay one set of tax based on how income is earned and another group pays another (either higher or lower) based on how the same amount of money is received.  Everything should be income and follow the same rules, be it working for yourself, for a large company or selling an asset.

Finally go to a flat tax but with a twist.  The first fifteen thousand that you earn (or what ever the final number would be) would be tax free.  This would be true if you are Bill Gates or if you are a single mother.  After that, every dollar you earn is taxed at the same percent.  This would be the best of both worlds, you would have a tax system that is easy to follow and understand but at the same time does not harm lower income Americans.  It would be fair for everyone and would make it easy to know if a politician really is lowering taxes or is using smoke and mirrors.