I congratulate those in Cayman Islands government who can bring about a surplus. I’m not a financial expert, but spending less than you take in has always made sense to me. It’s ironic that the people who really know this dictum are those who work every month to balance a typical household budget.
My grandmother lived a very simple life. Poor in material things, but rich in common sense. We were encouraged to “save for a rainy day”. How utterly simplistic yet profound, which makes me wonder why the world is so mired in debt. Why do governments continually run deficits and burden future generations?
Needless expenditures to secure votes are probably part of it, but we are talking about trillions. Sixty trillion worldwide to be precise. What’s the next category? Gazillion? I can’t help but envision a world Monopoly game where every country goes to the bank jail because their actions are criminally stupid.
The excuses for going into debt are made by people far more sophisticated and financially savvy than myself, yet here we are. The justifications for spending trillions always seem noble and beneficial to mankind but end up burdening those who can least afford it. I can understand the debt issue with wars (and how some industries need them to survive), but really question the proverbial can-kicking mentality of the 21st century.
I always seem to revert to the Monopoly game when thinking about this issue, because to those in government, it’s not real money. Depending on the country and its economic position in the world, there are printing machines that can always make more. It’s NOT their hard-earned money being spent. Therefore, most politicians are willing to spend recklessly until the game stops and the real consequences of fiscal irresponsibility set in and you need to borrow or print more money.
The Cayman Islands has been very fortunate and must continue to be diligent about balancing revenue and spending.
Living in these beautiful islands it seems like every day is sunnier than the last, but we must not deceive ourselves. There are always dark financial clouds on the horizon and we MUST ensure that we are prepared financially for those rainy days.
Bob Nickoles
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