How Politics can Affect Your Bottom Line

Ok, let’s start off with a disclaimer: I’m not here to endorse any particular candidate or prime you with political fluff. Instead I’m just here to point out some issues coming up in the next election that are of importance to those of the frugal mindset (or at least me, I won’t speak for everyone!). Financially speaking, what issues are the candidates covering that affect our financial outlook? Here we go!

1. Taxes: I don’t know about you, but I’m not a big fan of paying taxes. The Government takes a significant bite out of your paycheck, and it’s important to realize who is going to do what in this area. Are you willing to pay out more if it means keeping Social Security afloat? If you really think education should be of more importance, are you willing to take a hit on your wallet for that cause? Do you want the Bush Tax cuts to become permanent? Or do you want to just pay out as little as possible and handle your own money.
2. Social Security: If you are a young person paying into Social Security, you have plenty of reason to worry about the upcoming election. As it stands, the system is broken. There’s going to be more money going out than there is coming in. At a rough estimate, by 2041, Social Security will be out of money. If you’re young like me, there’s a very real possibility that you will be paying into Social Security only to have nothing left when you come out and retire. Find out where candidates stand on this issue!
3. National Debt: No doubt about it, wars are expensive. Since our invasion of Iraq and Afghanistan, the national deficit has balooned significantly. The current national debt is 9.2 Trillion Dollars. The US Government shelled out $406 Billion Dollars in interest in 2006. It’s no wonder that many Americans can’t balance their checkbook, their own Government can’t even come close! This has serious ramifications for our current and future generations, so get out there and see where candidates stand on this important issue. Another consequence of this is inflation. If you’re trying to save and invest, inflation can absolutely destroy your returns, because the money you have is worth less. For a full analysis of the Federal Budget, you can head over here.

There’s more, but I think that’s enough for now right?

-Xias