Most of us admit that we do not understand the current economic crisis. But there are some simple principles at work. Everyone who has run a household for ten years understands clearly that they cannot sustain living on credit cards.
The key word in setting policy, or planning a budget, is ‘sustainable.’ Can the policy or budget sustain itself into the future? There are many in America who champion the greatness of this country – even when behavior is not sustainable.
This clip from FOX News from last year demonstrates the frivolity of forecasting based on hopes. There is one man in this debate who was correctly prophetical the current economic downturn. But he was discounted because his message was not palatable to the consumer driven economy.