New Election Show
David Scranton: Welcome back to ‘The Income Generation,’ the show where are we share valuable financial information for that critical period in life when you’re either in or approaching retirement.
David Scranton: I am David Scranton your host. As regular viewers might remember, earlier this year we did a show focusing on elections. In that show, I shared some disturbing facts and figures about career politicians, and we talked about the many ways in which they impact the economy, the financial markets are laws and yes our lives. At that time the landscape of this year’s election was very foggy, so with the picture now much much clearer we are revisiting this topic on today’s show. Today we will be talking specifically about some of the things that stake in this year’s election and how the choice of one candidate over the other could potentially impact you, members of ‘The Income Generation.’
David Scranton: As our guests today, as author Dick Morris puts it, ” the stakes for working American and the economy overall has never been higher than they are for this election.” It’s hard to argue with that when you consider that’s some of the factors involved are as follows: Our national debt, immigration, employment, and the future of Medicare and Social Security, just to name a few. Dick Morris served as an advisor to career politicians, been with Hillary Clinton for 20 years, and the title of his latest book makes it pretty clear which outcome he feels will be worst for the economy and the country in general. His book, currently a best seller is called ‘Armageddon, How Trump Can Beat Hillary.’ Among the disturbing statistics that his book points out, is that there are some 114 million full time workers in this country, compared to 107 million on public assistance. And public assistance we do not mean Social Security or Medicare; we mean welfare, food stamps and Medicaid.
David Scranton: When President Obama took office, the ratio was 137 million working, compare to only 70 million on welfare. Dick Morris believes under Hillary Clinton presidency, those figures would continue moving in the wrong direction, until in short order the number of net contributors to the system would be fewer than the number of net taker.
David Scranton: In essence we are to lose control over our own country is what I hear you say I believe?
Dick Morris: Exactly, and the third thing is that the number of people on welfare will pass the number of people who work
David Scranton: Yes, It’s a scary thought when you consider the potential impact on income tax rates are already ridiculously unbalanced federal budget and are out of control national debt. Making matters worse is the potential for Hillary to try to appease Bernie Sanders supporters with her plans to reform or as today’s guest puts it to, deform two programs that retirees and near retirees depend upon dearly, and that is Social Security and Medicare.
David Scranton: According to Dick Morris, her plans has the potential to spur and inter-generational war over Social Security taxes, and to burden our Medicare system with all the problems plaguing Obamacare until the system finally implodes. As Dick Morris sees it, the dangerous economic trend of borrowing against our children future to reconcile fund the President will continue under Hillary Clinton, and before too long we become a dependent nation, moving ever so much closer to the fate of Greece and other European nation’s now struggling with massive debt and potential bankruptcy. Again, those are some scary thoughts, but there is really no debating that our economy and federal budgetary system have serious problems that need addressing. Others in fact has a huge responsibility this fall to make sure that the candidate they elect is one going to fix those problem or at least make them better instead of worse. You’ll learn more about some of these problems and issues and what’s specifically at stake for the income generation on today’s market breakdown.
David Scranton: If you’re not using someone who’s well trained in fixed income and you’re born before 1966, it may be just time for you to break up with that advisor and move on. I would suggest someone who cares for you in these important years of your life, if you need help finding someone call or write us. I’d also like to remind you of the special report entitled, The Income Generation,’ is available free to you our loyal viewers online. If you haven’t downloaded your report, pick it up after the show.
David Scranton: If you are near or in retirement, head over to ‘theincomegeneration.com’ and download your special report written specifically for the needs of the income generation again those born before 1966. I am David Scranton and you’ve been watching ‘The Income Generation.’ We will see you all next Sunday
David Scranton: So when we talk about this year election determining whether or not we’ll become another Greece, you might be asking is this just election your hype or is it really accurate? In fact the same goes for talk about crippling Social Security and Medicare and creating an inter-generational tax war. Could that really happen? Yes those are fair questions to ask so the next few minutes I’m going to break down some numbers that should help provide an answer. The bottom lines though is that, yes the stakes might actually be that high and if you’re a part of the income generation that means you’re retired or within 10 years of retirement, it means you not only have to think about making the right choice this November, it’s about making the right savings and investment choices for these trouble times.
David Scranton: As I have said many times on this show, we really are in uncharted waters today with our economy, our federal budget and our financial markets. In fact it’s one of the reasons this entire election is so contentious and in many ways unprecedented. The country is at a crossroads and the outcome of this election could have major financial implications for the nation as a whole and for you as someone saving for retirement. So as to the countries potential for becoming another Greece? Depending on the next President’s policy, let’s look at where we stand right now. Yes, again I talked about the debt bubble on previous shows; let me go over some of the numbers one more time. Our total debt here in the great United States of America at the moment stands at a whopping 19.3 trillion dollars, having risen from an already massive 900 billion dollars in the late 1980s. That deck currently represents just over 104% of the country’s GDP or gross domestic product. As I explained before that number is important because Government debt is a percentage of GDP is often used by investors or by creditors to Gage a countries ability to make future payments on what it owes. That of course impact borrowing cost and bond yields.
David Scranton: As a general rule of a country’s debt-to-GDP ratio exceeds 77% for an extended period, investors start to worry. Our surpassed 100% in 2012 and now stands again at a whopping 104%. By comparison, Greece’s debt-to- GDP was at 146% when it was finally forced to radically restructure its debt or go bankrupt. So on one hand you still think we have a long way to go, but on the other hand consider that the debt of GDP ratio has increased steadily and dramatically over the past decade; up from 64% just 10 years ago. And with a government in place that refuses to take steps to get our debt under control or worst yet when they keep increasing it, it’s a safe bet that 146% number soon enough. It’s worth pointing out here that national credit rating has already been downgraded by one of the three major credit rating agencies five years ago. Standard core has lowered our rating triple ‘A’ to double ‘A’ for the first time ever, partly because of its concerns about our rising debt burden. And if all those official debt numbers aren’t scary enough, think about this. According to the 2013 economic study, the government has an additional $70 trillion in off balance sheet debts that’s that aren’t even included in that official figure.
David Scranton: Off Balance sheet debts include trust fund programs like Social Security, Medicare, government pensions as well as actions taken by the Federal Reserve, things involving housing support as well as other Federal Loan guarantees. And, if you factored in all those commitments our national debt weight more six times the actual figure, almost $100 trillion according to this report. Odds are that number has only gotten worst since the study was conducted which brings us back to Social Security and Medicare and how these programs might potentially be impacted under Hillary Clinton’s presidency. As you hear our guest Dick Morris talk about in the next segment, Hillary Clinton’s plans for Social Security which include reducing the eligibility age all the way down age 55 could potentially overburden the system, until the only option for keeping it solvent would be significant increases in social security taxes. Her proposed changes to Medicare along with her policies to other social programs as well as immigration could have similar repercussions; meaning tax increases across the board. So what might this mean for our age group saving for retirement in retirement? Well here are a few possibilities to consider
David Scranton: IRAs and 41-Ks for example represent one of the most members of the income generation and right now the government provides tax incentives for you to save for retirement through these types of vehicles. But if the government needs more money, it might become less generous and how it taxes your retirement account and many of you would probably argue that it isn’t all that generous now than with how it’s already taxing them. So let me give you a hypothetical example, let’s say that you have $1 million sitting in an IRA right now and unfortunately you die. Taxes are generally due income taxes within 5 years after death at a current rate of 40%. That means that million dollar heirs would get about $600,000 and the government gets 400, but if the government needs more money the laws could simple change and instantly flip that obligation around, meaning the IRS would take 60% and your heirs gets just 40, simply by raising marginal tax brackets. And possibly even shorten the number of years it takes for those taxes to be paid. So at the stroke of a pen in congress the IRS could take another $200, 000 out of your IRA and there’s absolutely nothing that you can do about it.
David Scranton: How about state taxes? Well as we pointed out in recent show, right now the government threshold for state taxes is $5 million, meaning that you don’t owe any state tax if your net worth is less than that. But the more money it can lower that threshold the 3 million, 2 million or 1 million or it already stands in many states when we are talking about state estate taxes. Another option could be to hit you with new taxes on capital gains. You see right now for example, if a stock or home that you bought for $100,000, it has been appreciated and it worth as much as $1 million by the time you die, your heirs actually inherit this with no capital gains tax. It’s called a step-up in basis, but if the government needs more money, one consequence could very well be that your heirs now get hit with capital gains tax and all those appreciates assets you’ve held during your lifetime. And of course these are all just possibilities, but the bottom line is this, if we should end up with a government this fall, whose policies not only don’t attempt to fix out current fiscal problem but actually do thing to make them even worse than they already are there will be significant repercussion. The truth be told tax increases might just be the least of them.
David Scranton: Another concern I have talked about related to the debt bubble is the threat of hyperinflation. Now we haven’t had any problems with inflation in the last several years. Now think about this, if your national credit rating remains bad for so long that other country loses confidence in our ability to pay our debts, the dollar could plunge in value and we could lose our status as the world result currency. The result could very well be hyperinflation which would really be an insidious erosion of the value of a lot of Americans retirement savings. In the end if we keep moving in the direction of Greece, becoming a dependent nation with more citizens who take from the system than contribute to it, then we run the risk of sharing Greece’s fate, we run the risk of collapsing our economy or stock market, losing our status as a global leader and bankrupting not just our country but that our children and grandchildren futures. Again, members of ‘Income Generation’ suggest that you have two important questions to think about in light of all this. First, what you are going to do to help and protect your country this fall? And secondarily, what are you going to do to help to protect yourself and your retirement savings today?
David Scranton: Stay with us after the commercial break we’ll be right back with our special guest today, Dick Morris.
David Scranton: If you’re not using someone who’s well trained in fixed income and you’re born before 1966, it may be just time for you to break up with that advisor and move on. I would suggest someone who will care for you through these important years of your life, if you need help finding someone call or write us. I’d also like to remind you of a special report entitled, The Income Generation,’ this is available free to you our loyal viewers online. If you haven’t downloaded your report pick it up after the show.
David Scranton: If you are near or in retirement, head over to ‘theincomegeneration.com’ and download your special report written specifically for the needs of the income generation, again those born before 1966. I am David Scranton and you’ve been watching ‘The Income Generation.’ We will see you all next Sunday.
David Scranton: Welcome back! For today’s timely show we have an extremely timely guest. Dick Morris served as a special advisor and politician’s consultant to both Bill and Hillary Clinton for 20 years. In fact he said to know their strengths, their weaknesses, even their deepest secrets. All that inside knowledge now plays a major role in his latest book entitled ‘Armageddon, How Trump Can Beat Hilary.’ Dick is the co-author of six New York time in all and a regular political commentator on Fox News and other networks. Thanks for joining us Dick.
Dick Morris: Thanks but it’s twelve times best sellers
David Scranton: Twelve time! Gosh I am sorry they short change you by 50%. Giving the topic and the title of your book, I imagine you are in extreme demand these days as a talk show guest. Explain why you called your book ‘Amargeddon’
Dick Morris: Well because I think that this is the ultimate fighter against evil and I do feel in a certain sense that it’s the last battle. If we lose this election there will never be another and that I do not mean this will become a dictatorship, but I do mean that Hillary will let 10 or 12 million currently illegal immigrants vote. And appoint Supreme Court judges will sustain that and will never win another election for 20 years. And I do mean by that, that she’ll let millions of immigrants and refugees in seeding our country with potential terrorists and we’ll be like France, we’ll be unable to exercise this plague because it would have taken such hold in an our midst.
David Scranton: You’re saying in essence we are to lose control of our own country, is what I hear you say I believe?
Dick Morris: Exactly, and the third thing the number of people on welfare will pass the number of people who work.
David Scranton: Yes
Dick Morris: Right now there are a 107 on welfare not counting Social Security or Medicare but Medicaid, food stamp, welfare they are in the like; 107 million in the number full time working is 414. When Obama took office it was 70 on welfare and 137 who worked. Under Hillary those lines wont cross so whether it’s those lines will cross so whether it’s the becoming a dependent population will begin being seated with potential terrorist or whether it’s packing the electorate this in its scene is the last election.
David Scranton: Interesting! So I know in your book you talked about a dozen reasons why Hillary should not be president I know you just highlighted a couple, if you could give us more, give us a few more, the ones that are perhaps the strongest reasons I’d love to hear them.
Dick Morris: Well first she is a compulsive and pathological liar; whether you’re saying that was named after Sir Edmund Hillary whether she landed under sniper fire in Bosnia, whether she didn’t send or receive classified emails or saying that that she was one of the in the military as a marine, her life is just festooned with fantasy story that are not reality. And Hillary when pressed rarely tells the truth. Secondly she her fails the test as commander and chief in Benghazi, the perfect example of how she would work as she president. She ignores the warnings, she did not reinforce the Garrison and when the attack was on the way she turned her back. I think that she is also fundamentally corrupt. I think the Clinton’s become sort of an ergo, racketeering organization where Bill collected speaking fees that were really disguise vibes and Hilary took action the secretary of state to pay off the people that made the pay-offs. For example when Putin wanted to buy 20% of the U.S Uranium Reserves, they paid Bill a million dollars to give two speeches in Mascot. And as soon as the million was deposited in Hillary’s account she okayed the deal. I think she knows nothing about economics; she has never talked about economics, it has never been one of her things and that’s going to be a racial issue.
Dick Morris: I think she is Pro-Muslim. I think she is unduly influenced by Uma Aberdeen or close associate who has a long history of involvement in radical Muslim activities, was raised in Saudi Arabia and her mother is the editor of a journal that includes a lot of geodes material. I think that Hillary lives in a bubble, I think by combination of white house and her mansion tenure state department she’s become removed from the average person, that doesn’t share her vibes that doesn’t understand our problems. And I’ve got a whole bunch of others in the book.
David Scranton: We need to take a break in just about a minute, but before our show is aimed at retirees and near retirees primarily. Can you give us the cliff notes version at this point how you think of Clinton presidency would impact them specifically?
Dick Moore: I think she’s going to take two systems on which retirees depend and fundamentally deformed them as Social Security and Medicare but we need to go to your break before I fully explained it, but let me see with Medicare she wants to lower the eligibility to 55, and eventually she wants to expand it to everybody; single peer system and that will take a well-functioning system of Medicare and turn it on its head. The number of patients demanding care will soar the number of doctors able to give the care would be limited. You’ll get the same problems in Obamacare in Medicare. It will spread the contagion that is basically ruin the Obamacare causing it to implode, lack of patient care, lack of doctors, and lack of accessibility and spread it to Medicare. When we come back let’s talk Social Security.
David Scranton: That’s a great idea, that’s a great way to send us into the break. Thank you again Dick Morris, we’ll be right back and when we are we’ll talk a little bit about how Dick believes that a Trump presidency would be better and whether or not Donald Trump, although Dick believes he can win the election and whether or not he can actually run the country. We will be right back after the break stay with us.
David Scranton: Welcome back, we’re here today with Dick Morris, author of a new book, ‘ Armageddon- How Trump can beat Hillary.’ Dick let’s talk about the economy specifically for just a minute.
Dick Morris: Before we promised the viewers to talk about social security just to finish the answer to your last question.
David Scranton: Perfect sag-way. That’s where I was heading.
Dick Morris: Hillary’s plans will endanger Social Security because she is being pushed to the left by Bernie Sanders people and he’s going to have to expand social Security to a point where is financial stability will be in serious jeopardy. For all the propaganda about social security being in trouble it’s really not. Social Security is in fairly decent shape and we have large numbers of younger people, largely immigrants coming into the country and eventually interest rates will recover and the funds would be alright. But it’s a thinly balance thing, and if we expand Social Security as she’s urging which is to lower the retirement age when we need to be raising it and using Social Security to fill the gap between when you are 30 year career is over and age 65, that late 50’s 60’s period. That’s a population equal in size to those over 65 and if the social security system is burden with that, the only way it can finance itself is by a significant increase in social security taxes. Right now social security taxes do not cause much political havoc because they are only on the first hundred in a quarter of income. But when they take that lid off and raise the rate to accommodate the changes Hillary wants to make it’s going to become an enormous burden and enormous political issue, and so an inter-generational war.
David Scranton: Certainly, wow that’s a mouthful! But now let’s pivot. Let’s talk about how a Trump presidency will be better for the retirees and pre-retirees and members of the income generation that watch our show every week.
Dick Morris: Well I think people do not understand the real Donald Trump. I know him very well, my father was his lawyer and I’ve known him all my life. And Trump is not an ideal log he certainly is not a (inaudible) like the wants to make out. He’s not a biggish, he’s not a racist he’s a builder, he’s a developer. His motto is basically ‘Get it built, get it done, I don’t care if it’s left or right, make it happen.’ He is someone who is accustom to getting stuff built and done and brushing aside the obstacles in his path. LaGuardi once said there is no Democratic or Republican way to clean the streets and I think that is Trump’s motto. In a sense Trump is basically saying just give me the damn bowl and let me get this stuff done.
Dick Morris: And I think that as whereas Hillary would be government by committee and continuously influence all of the winds of political opinion, I think Trump would be focused I’m getting certain objectives met. Reducing the deficit, bringing down the debt, restoring American competitiveness abroad, stopping illegal immigration into this country, stopping the refugees flows that jeopardize us and enhancing our intelligence our security capabilities and I think those are crucially important to all Americans and to the audience of your show.
David Scranton: okay, so what do you say to all the viewers who in some ways really want to vote for Trump whether it’s to vote for Trump or to vote against Hillary but are afraid to pull that lever because they’re afraid that Trump would be as some say too risky of a candidate. What would you say to those voters?
Dick Moore: I would say that, they have to recognize that in Dillon’s words, ‘the times they are changing,’ and the average person in the world is not prepared sit back and let those who run the global economy continue to run it into the ground. They look at the record of the global economy, they look at the dysfunctional nature and they no longer trust the elites, the IMF, the European Union, the World Bank, and the Federal Reserve board. They want a government that looks out for them, a government that’s more nationalistic than global, puts the need of the American people first. And I think Trump is going to do that and I think that the Trump campaign will bring a reform in its way that wills you as-wage those concerned. Whereas if we go to Hillary we would make matters worse and ultimately lead to a more significant destructive reckoning. The same impudence that led Britain to leave the European Union he’s leading Saunders and Trump voters to take over their parties and the demand an entity government by these Elites in their own self interest.
David Scranton: Well economically speaking, you said it best when you said that 114 million citizen’s really at this point net contributors to the economy and 107 million are net takers. When that flips over to the other direction all of a sudden we turn potentially into Greece like situation.
Dick Moore: Retirees have to understand politically balanced social sec Social Security is and Medicare is is no great resentment invested in the American economy. There is no war on the citizens, but yet over half of our budget goes to the elderly, over half and if you take out debt service almost two thirds between Social Security and Medicare. And if that is expanded as Hillary wants to do it’s going to cause physical havoc, huge tax level and go down the same rat hole Detroit is in or Greece is in. More taxes on what you pay and therefore less and less on productivity.
David Scranton: Dick we need to leave it there for now, unfortunately time files when you are having fun. I appreciate your insight and I just received your book yesterday and I absolutely cannot wait to read it. So thank you so much for being on the show today.
Dick Moore: Thank you.
David Scranton: Alright, stay with us; we will be right back with more between myself and Morgan. We’ll be right back.
Morgan Thompson: Welcome back to ‘The Income Generation.’ Now David you talked a lot about debt to GDP, can you explain a little bit more for or viewers in case they’re not really getting what you’re talking about.
David Scranton: Sure, the national debt is basically, you take the total national debt annual debt service, not our annual debt service, not our annual interest but our total national debt and you divide it by the GDP. Which the GDP is the equivalent of income to an individual.
Morgan Thompson: Okay
David Scranton: So think about it this way, if you were household and you had a $ 100, 000 mortgages and you had a $100,000 income, it would be very much like having 100% by the GDP ratio.
Morgan Thompson: Okay
David Scranton: 100,000 of debt, 100,000 of income, that’s one over one which is a 100%.
Morgan Thompson: And U.S as a country, that’s pretty much where we’re at right, a 100%?
David Scranton: A little bit over 100%, that’s correct
Morgan Thompson: Okay, so that doesn’t seem like such a bad thing to me, so if I make $100,000, $100,000 on mortgage, why is that so bad?
David Scranton: You are right! When you put in individual terms it doesn’t sound as bad but here’s the thing that I think everyone has to remember; first of all the reality is that when you have debts in your household you can cut back expenses more easily. You can make a decision to not go out to dinner, you can make a decision to not travel and to cut down those variable expenses and that’s why a lot of mortgage companies for example will approve of 40% of debt service to income, where if you’re making a 100,000 income you can have a mortgage payment of 40,000 a year. But think about it as a country, can we just cut back our expenses? Can we just cut back without virtually in active congress and defence spending?
Morgan Thompson: No!
David Scranton: Can we just cut back our welfare programs?
Morgan Thompson: No!
David Scranton: No, you see if anything would happen new spending measures pop in, you spending measures that we didn’t really expect and those spending measures then actually force us to have to spend more money which is how we continuously get pulled into more and more debt overtime. So a 100% may not sound like when you’re making an analogy to an individual,
Morgan Thompson: Right
David Scranton: But the reality is when you’re looking at a country, a country has less flexibility. If they are already off to here the cut back expenses you really have to pass some legislation and as long as politicians are going to be politicians they’re not going to want to take away benefits if they want to get re-elected.
Morgan Thompson: That’s true, but you know every politician has their own idea of how they’re going to cut back spending so we can make things improve a little bit so is that why it is so important to rely focus on the election and focus on who’s talking about taking what because your pie is like this; something got to come from somewhere so you really have to pick and choose where it’s going to come from.
David Scranton: That’s right, that’s right! It’s important that we focus on this election I believe, the economy is really a primary issue and I think that’s why this election is so crazy and so different from most, is that people are realizing wait a minute; we have to do something different. Doing the same old stuff we always done is going to get us the same old result. And we are at a pace right now in terms of our debt in GDP is growing where in little in about 7 or 8 years, we’ll have the same debt in GDP that Greece had right when it became insolvent.
Morgan Thompson: You know I heard that and it’s a little scary. I know that’s a lot of people don’t really believe that we’ve talked before as a irrational exuberance as investors or as a thought process as an investor but you think we’re facing irrational exuberance as a nation, saying you know it won’t happened to us, it will be different, this is never going to happen to us, things will be fine, is going to work out?
David Scranton: Well, there are always people who think that this time is going to be different. You know for example I remember, you remember in 1999 where the technology bubble,
Morgan Thompson: Oh yeah
David Scranton: In the stock market, I’ll make a stock market analogy where people say hey, the stock market is going to go to the moon this time. We know it’s never done it but this time is going to go to the moon, we have this new technology called computers and internet and so on and so forth. Well, the reality is we’ve always had technology and technology has been the excuse for some very very smart people saying that this time it’s going to be different. In the stock market for example we had a beer market back in 1800’s and back then people use the excuse now we have trains, people could put our goods and services on trains, we can ship them all the way across the country with this technology of trains, this time it’s going to be different.
David Scranton: Then we later had the trucking industry when we had the depression, where people now said okay, with the trucking industry we can take our good off of trains and we can ship them via trucks to the remote corners of the world where now new technology of trucking this is the first time the stock market is going to go to the moon. And of course in the 1930’s, literally in 1954 to when our stock market got back so where it’s been in 1929. And it happened again when we had a beer market throughout the 70’s. People thought it was jet airplanes this time, where we can put our goods and services on jets and ship them halfway across the globe. As many times smart people say this time it’s going to be different, that simply doesn’t happen. History repeats itself for a reason and I think we have to look and say well all of these other countries in the past, every single one debt to GDP got out of control defaulting on their debt. I know where the great United States of America but I think we’ll be naive bury their heads in the sand and to think that it can’t happen to us. Does that make sense?
Morgan Thompson: It does make sense. We are going to take a break right now. When we come back we’re going to talk about why the economy needs to be voters’ number one concern.
Morgan Thompson: Welcome back to ‘The Income Generation.’ In this segment we are going to talk about why the economy should be voters’ number one concern. So, David why is the economy issue number one in this election especially?
David Scranton: I think it has to do with our freedom of our country. People don’t realize that when a country guess to a point where they’re about to default on debt, in essence their freedom gets reduced. You know the average income earners; Middle America is going to get benefits taken away. They’re likely to get benefits reduce in terms of Social Security, in terms of Medicare, in terms of government pensions. This is what happened in Greece.
Morgan Thompson: Right
David Scranton: High-income earners are going to be in a different situation. Their income tax rates are going to go up so they’re going to end up paying a bigger share than they otherwise would have wanted to and that takes our freedoms away. So what we’re trying to do here is to maintain our freedom, which is what we fought for all these years. In fact I want to ask you because I know your goals when you pull a lever in a voting booth are sometimes different from mine. Now I’m know I’m biased because I’m in the financial fields. I’m always thinking about the financial side of the economy. What are your major issues that are important to you when you vote?
Morgan Thompson: I mean finances are of course important and it affects all of us but me personally I’m all about human issues- I care about women’s rights, I care about minorities and gays rights to marry. I really think human issues are important because I think the government should stay out of my personal business and govern and that’s where the economy comes in I guess.
David Scranton: Okay, alright. In other words what you’re trying to say that you are much nicer than I am, kind of….. Am I correct?
Morgan Thompson: I am not saying that. I really do care about people though and I think people should be able to do what they want and live their life as they choose as long as…..
David Scranton: And that’s the freedom you’re talking about right?
Morgan Thompson: Yes, that’s exactly what I’m talking about!
David Scranton: Well, I am glad you brought that up because I’m sure you are not the only person that thinks that, there are people that are watching our show right now that are thinking well there’s a balance.
Morgan Thompson: Right and there should be.
David Scranton: There should be! But the pleas that I like to make is, I’d like to say, think about how far we’ve come with human rights. You know it used to be that you had to be a property owner in order to vote and now you don’t have to be a property owner anymore. In fact……
Morgan Thompson: A male property owner
David Scranton: That’s right, that’s right! I was getting there; you are a step ahead of me. Wow, we’ve got a feisty one on your hands today, so less coffee for you on next week’s episode.
Morgan Thompson: Hey, I am a woman’s studies minor what can I say?
David Scranton: There you go! If you think about it though we went from only property owners being able to vote to and now we have everybody can vote. So even if you don’t pay a dime in sales tax or property tax or income tax and you’re on welfare and you are a net taker from the system you still get to vote.
Morgan Thompson: Yes
David Scranton: Women’s suffrage comes a long way, those you mentioned a moment ago. Have we gotten to equal pay yet for women? Well not really.
Morgan Thompson: No, we are talking about it. We are talking about it and that’s……..
David Scranton: Who close the gap of descent amount? Gay Marriages that just changed recently also, we made so many strides when it comes to human rights
Morgan Thompson: We have…
David Scranton: But, think about what our national debt is done and what our deficit has done. Do you know that we’ve never had a permanent national debt until the great depression? Are you aware that we used to use our debt as a credit card where during recession we would borrow and we get ourselves out of recession and during the good times we pay off debt.
Morgan Thompson: Okay
David Scranton: So in the last 90 years or so we’re going in the opposite direction when it comes to economy. Do you realize that?
Morgan Thompson: Wow, so more and more in debt and not paying anything back.
David Scranton: That’s right and at the end of the day I think we’ve come so far when it comes to human rights that I think the next 4 or 8 years really really need to be focused on the economy because even Kames himself, the father of ‘Kames Economic theory’ said that although, ‘I spouse and I am paraphrasing, ‘spending money for government to get themselves out of a recession. He said my strategy would not work perpetually with any given governmental entity, eventually they will fail. And then equipped that with of course I will no longer be alive by time that happens and I think we are on a brink of having come true exactly what Kames predicted. So the plea I would like to make to all of you and to my wonderful co-host here, Ms. Morgan is just that, is that we need so many strides in the human rights side but virtually none on the economy, in fact we are going backwards to just change our priority one or two election period get that better balance. That’s really the plea that I really want to make with you,
Morgan Thompson: Yes and to our income generation viewers
David Scranton: And our income generation viewers.
Morgan Thompson: Okay
David Scranton: So the interesting thing here is that America is the greatest nation in the world and a large part because it’s the most resilient nation in the world. As a country yes we face and overcome many major challenges in the past and I sincerely believe we are capable of overcoming the ones that are facing today. But it’s not going to happen by ignoring those challenges; it’s not going to happen by politicians burying their heads in the sand. Electing leaders who are going to ignore these problems on acting policy that could actually make things worst in the opposite direction. I hope that today’s show gives you a clear understanding of what some of these challenges are and Morgan I hope today’s show maybe just suede your thoughts just a little bit and your prioritization on your own election issues.
Morgan Thompson: I have to say what you are saying really does make perfect sense and there is no reason why our GDP points can’t dovetail. So I change my mind.
David Scranton: Oh, good and hopefully more than just yourself because you know some of the potential consequences could be absolutely devastating if we keep moving in the wrong direction, consequences that could impact you personally, the nation on a whole and unfortunately the next generation of Americans; our children and grand children. Ironically, if we do keep moving in the wrong direction we are endangering the very thing we treasure most as a country. The thing we celebrate every July 4th and that is our independence. We are endangered becoming a dependent nation with more citizens that take from the system than contribute to it, a nation beholding to creditors and crippled by debt. If you are watching the show it means that you that you have a personal responsibility to build a strong, secure financial future for yourself and people who depend on you. Just by tuning in and educating yourself and proving that you are taking that responsibility seriously, so why should you expect anything less from your elected officials, the answer is you shouldn’t so please keep that in mind this November. Now before we go, I want to thank all our regular viewers as well as those of you watching for the first time, I hope you’ll be back.
David Scranton: For more information on today’s topic and much much more, I encourage you to download a copy of a report entitled ‘Renewable Retirement Resources, The Case of Fixed Income’ right after the show. You can find it online at ‘theincomegenerationincome.com.’ You can also download a copy of my special report called ‘The Income Generation.’ I am David Scranton, thanks again got watching.