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Government Bailout of People With Financial Distress
written October 5, 2007

The answer to the question, "Should the government bailout struggling homeowners" should seem obvious and simple. The direct answer should be no, as each person should be personally responsible for managing their finances and not over-reaching themselves. However, being able to manage one's money depends on stability of the income over the cost of living factors.

Prior to the 1980s, job security was a sure thing. A person could enter their career job at eighteen and count on retiring. The money was not the greatest, but the economy was stable, and based on what one person alone could bring into the home. Divorce rates were still relatively low, allowing one person to work, and the other to say home to tend to the children. Medical and Dental costs remained within reach.

Then it happened, the oil industry attacked, women began to enter career jobs (and no, the problems we face is not caused by women going to work, but by households becoming dual income and the business world realized they could raise prices for everything since people now had the income to meet the demands), jobs began laying people off. In time nothing was so certain.

Unless you had help getting a good footing into life, chances were good that you would have to reach out for the helping hand of credit. There is nothing better in life than having to use credit to buy food because the money ran out before your checks were gone. Then suffering loss of wages, or increasing prices in gasoline for the car, electricity, phone service, and eventually food began to play.

During this entire time, the Governments bailed out the Savings and Loan industry to the tune of billions of dollars. Other industries to receive government bailouts were the airlines, deregulated communication companies, deregulated power companies. Even the three American auto manufacturers have had their share of government bailouts. Yet, all these bailouts did was protect the wealthiest asset possessed people of this country. Not once did the Government help the people through all the tough times. But times have changed.

As of this moment, well over 60 percent of the people of the United States are in debt in such a way that they will suffer the inability to pay it off should a major economic even occur to cause major job loss. An more recently, the explosion of the housing market resulted in many people buying houses such that they

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