Security II

Economic security at the national level is basically sound money management, including setting priorities, managing budgets, and limiting debt.  Congress doesn’t seem to be too good at these.  Well run companies carefully manage their capital structure.  Government at all levels doesn’t bother because it can always raise taxes.  Debt can reach a point where raising taxes alone won’t work.  Can anyone even conceive of how much $17 trillion is?  How are our children and grandchildren supposed to pay this off?  True, it’s not all due at the same time, but as some debt is retired we keep adding more so the trend is upward.  Has foreign debt given other countries too much leverage in setting US policy, or could it be used as an economic weapon?

At the personal level economic security starts with a good education that leads to a decent paying job that leads to a secure retirement.  This was an improving trend in our country but that trend seems to have reversed as the middle class is in decline.

Emotional security is simply the feeling that things are good in this country.  For generations many parents found emotional security in seeing their children do better than they did.  I was the first in my family to go to college and my parents were proud.  For immigrants from oppressive countries emotional security may come from freedom from the fear of a brutal government.  Emotional security contributes to the “pursuit of happiness”.

There’s an economic metric that retailers watch called the Consumer Confidence index.  It’s a measure of both the economic and emotional status of the population.  Higher confidence means consumers are more likely to spend than when they’re worried.

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