Small Is Good…

OK, you wonder what I mean by “Big Is Bad.” I’ll start by telling you that “Big Is Bad” isn’t a moral judgment. “Big Is Bad” is a logical conclusion drawn from observing economic and social—especially governmental—reality. “Big Is Bad” describes what happens when an entity grows too large.

Examples of Big is Bad…

Big–>Bad for the Auto Industry…

· TheAmerican auto industry—its management and its unions—grew rapidly after WWII. The companies and the unions became Behemoths.

o The survivors destroyed their American competitors and then GM and Chrysler destroyed themselves.

Big–>Bad for the Housing Industry…

· President Carter presided over the passage of the misguided Community Reinvestment Act[1]. This act made owning a home contingent upon the largesse of the government and the granting of immunity from risk to mortgage lenders. The financial stability of the buyers became an afterthought.

o Fannie Mae and Freddie Mac grew like an unchecked cancer, became bloated Behemoths, and destroyed themselves and the equity of millions of Americans.

Big–>Bad for Investors…

Wall Streetas once the investment capital of the world. Today it’s the bailout capital of the world. In 1999, the US Congress—with its perennial lack of foresight and wisdom—repealed the Glass-Steagall Act of 1933. They replaced it with the Gramm, Leach, Bliley Act, which changed the law to allow banks, insurance companies, and investment firms to mix and match the services they provided to their customers[2].

o Wall Street firms like Lehman Brothers, insurance companies like AIG, banks like Wachovia, and hundreds of lesser-knowns became Behemoths—too big to fail said the Dolts in DC. They failed anyway and damaged the personal economies of all 303 million Americans in the process.

Big –>Bad for American Governence…

· The Fifty United States—thirteen originally—are the founders and owners of the government in Washington DC. They established the federal government to serve“We the People…” and to protect our rights from those who would ignore or abuse them. The role of the federal government is not to provide for us or to replace our personal decision-making with imperial fiats. However, in the past few decades the federal government has become the Behemoth of the Behemoths, has ballooned into a giant Pillsbury Dough Boy that usurps many of the rights of the Fifty United States and of “We the People…”—not to mention a boatload of our money.

o The federal government consumes or controls over one-half of the American economy directly and affects almost every aspect of the economic life of every individual and business in the country. The federal government’s financial house is a complete disaster with deficits running in the trillions—that’s thousands times billions. Unregulated czars and anonymous bureaucrats are adding hundreds of billions more to the expenses of American businesses and families. The Congress is corrupt beyond measure. Lobbyists like AARP win favors for the few at the expense of—you guessed it—“We the People…”–especially we the older people.

Big–>Bad for the Dollar…

· Finally, there’s the Federal Reserve Bank, which—by the way—is not a part of the federal government, has no reserves at all, and is not a bank[3]. The Federal Reserve Bank—the FED—is a private enterprise. The FED controls the currency of the United States of America. The FED is not accountable to anyone—least of all to “We the People…” In other words, their own interests motivate The FED’s owners. The FED gets to print as much of our money as it—not the government or “We the People…”—wants and manipulate the economy at its whim.

o No comment is necessary.

How to Survive Big…

EUREKONOMICS™ is a personal economic and financial management model based on principles and practices that are embodied in the Declaration of Independence, the US Constitution as interpreted by the Founders, and treasured works like Ben Franklin’s The Way to Wealth[4] .

EUREKONOMICS™ allows individual Americans and their families to escape BIG or to at least insulate themselves from the impact BIG has on their everyday lives by giving them a well established set of economic principles and financial practices upon which to base their personal economic decisions.

[1] http://en.wikipedia.org/wiki/Housing_and_Community_Development_Act

[2] http://en.wikipedia.org/wiki/Gramm%E2%80%93Leach%E2%80%93Bliley_Act

[3] Get a full PhD in the FED in 42 minutes at http://video.google.com/videoplay?docid=6507136891691870450#

[4] https://www.createspace.com/3434860