Blog | Personal Finance

The Truth Hurts

The presidential campaign season is getting into full swing. And with it, the BS meter is rising. That means without a financial education, it can be easy to be duped by smooth-talking politicians.

I’m neither a democrat nor a republican. Rather, I vote for the person whom I believe understands the issues the best and who has the most common sense.

The problem is that the first thing that goes out the window when you run for president is your common sense.

Why?

Because you start caring more about what will get you elected rather than the truth.

Because in a presidential election, the truth hurts. It hurts your reputation. It hurts your press coverage. And it hurts your ability to get elected.

Enter Governor Rick Perry who this week backed off his statement that Social Security was a “ponzi scheme.”

As Huffingtonpost.com, reports: “Perry has previously taken a hard-line stance against Social Security. In his 2010 book, ‘Fed Up!’ he suggested the program was unconstitutional, put in place ‘at the expense of respect for the Constitution and limited government.’ He also wrote that Social Security is ‘set up like an illegal Ponzi scheme.’”

Now, Perry is backing off his claim. From his spokesman comes this gem: “The governor wants to see the benefits for existing retirees and those close to Social Security be strongly protected.”

That’s what is called a flip-flop, and here’s the translation: I need the baby boomers and elderly to get elected, so I’ll give them what they want.

That Perry would back off his previous comments regarding Social Security is troubling, but it’s also proof of what most of us already know: in politics there are very few convictions and always quite a few concessions to get ahead.

For years, I’ve compared Social Security to a ponzi scheme. A ponzi scheme is simply a system where the inflow of cash from new investors pays the returns for the existing investors.

That describes Social Security exactly

But nobody will get elected towing that line. Voters would revolt and the mainstream media would ignore you.

In fact, the only candidate that does speak plainly, with common sense, and with truthfulness is Ron Paul. And he is routinely ignored, as evidenced by this hilarious, and sad, clip by Jon Stewart of the Daily Show.

 

As this presidential race picks up, you’ll see more and more political double-talk. Even worse, many people will once again place their hopes for the future on politicians – instead of getting a financial education.

As I advised during the last presidential election, don’t rely on politicians to save you. You must save yourself.

Unless a miracle happens and we find leaders willing to do and say the right things and stand on principals, the economy will continue to falter – and the middle class will suffer.

Increase your financial education, trust your gut, and don’t get conned by smooth-talking politicians.

For more information, and to get your free copy of “Shooting The Sacred Cows of Money,” click here.