An Introduction

Hi. Welcome to BourGroup and my blog. Phil

Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.

I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.

"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.

Monday, August 1, 2011

Do the "Right" Thing

I am writing this on August 1st and the deadline for raising the debt ceiling is August 2nd.

"Tea Party" Republicans and a "few" others are trying to do the "right" thing (i.e. reduce government spending in phases and that includes everywhere, especially, entitlements like Medicare and Social Security) and yet some pundits are claiming that they are the "problem" for not compromising their values.

I personally do not think they are the problem, they are the solution. If other Democrats and Republicans would do the "right thing" then no compromise would be needed. For example, here are some "right" things:

(1) Social security age must be raised (that is, in effect, a reduction in benefits) but it is the "right" thing to do. Sorry.

(2) Medicare must be even more aggressively "means-tested" than it is now so high income retirees pay more. Sorry.

(3) Tax system must be reformed (taxes will go up for some) but it is the "right" thing to do. Sorry.

(4) Spending on discretionary, defense and other non-discretionary items must be reduced, too, possibly based on a running average percentage of GDP. Period.

As it is now, it appears that some evenly-divided committee (6 Republicans and 6 Democrats) will make the tough choices as a result of this "grand compromise".

This committee most likely won't agree and then reductions in spending will set in by default with no one voting "for" them. Cute. That way no one is "blamed" for allowing tax cuts to end in 2013 or "blamed" for cuts to Social Security or Medicare. Yet, those are the "right" things to do and phased in over time so we can get through the current malaise in this economy.

Sorry. Everyone except those committed to doing the "right" things should be voted out of office when their time comes - or sooner. It is not the "compromisers" that are right. They all should have agreed to do these things so no compromise (and, by default a "watered-down" non-solution) would be needed.