Money, Politics and Hard Decisions

One of my favorite columns.

COLUMN: Money and politics and hard decisions

Just Plain Talk


June 05, 2011 6:13 AM

Buz Livingston, CFP


Our neighbor, Mike Huckabee, recently declined to seek the 2012 Republican nomination. Personally I prefer William Tecumseh Sherman’s, “If nominated I will not run, if elected I will not serve” but to each, their beach, err, own.
Huckabee has much in common with Middle America; he keeps working because of monthly mortgage payments. According to the Arkansas Times, Gov. Huckabee has a $2.8 million mortgage for his Blue Mountain Beach home along with a $375,000 loan for an Arkansas vacation home.

Rich people miss one of life’s great pleasures, making the last mortgage payment. On the sunny side, too, you can’t find a better time to lock in low interest rates.

Take it from a local and revisit “drill, baby, drill.”

At least Gov. Huckabee spent his money on something worthwhile (and added to Walton County's tax base) in contrast with Newt Gingrich. At one time the former Speaker of the House carried a $250,000 or higher balance at Tiffany’s. As Stephen Colbert noted, Gingrich must buy engagement rings in bulk.

During Donald Trump’s fake presidential bid, not unlike his fake reality show, he excited crowds with an Einstein-level economic plan. The Donald’s solution, slap a tariff on the Chinese — 30 percent ought to show ‘em whose boss.

Not so fast, Brains Benton; tariffs cost exporters zilch, zero, nada. Consumers pay tariffs through higher prices. We should expect as much from a fake reality show buffoon. You’re fired.

Oklahoma Sen. Tom Coburn created a bit of a stir when he bolted from a bipartisan group of senators focusing on deficit reduction. The liberal media pundits raked the senator over the coals for his demand for immediate Medicare cuts. I come to the senator’s defense. No one, save Coburn, dares to admit the painful reality. If tax increases are off the table then there must be immediate and steep cuts in Medicare.

Page 79 of the bipartisan Committee on the Fiscal Future of the United States’ Choosing our Nation’s Fiscal Future states, “tough cost controls in at least the near and medium term” are the only path for Medicare “that would not require significant increases in federal revenue.”

We need serious discussions because hard decisions are unavoidable. Even Paul Ryan’s “bold” proposal kicks the can down the road and does virtually nothing to hold down rising Medicare expenses in the short term.

I have no solution to the Medicare dilemma. But I know this, if you enjoy, support or benefit from government sponsored health insurance, aka Medicare, then someone has to pay for it.

It is not liberal or conservative rather the tyranny of mathematics.

Buz Livingston is a certified financial planner. He operates Livingston Financial Planning Inc. focusing on hourly financial planning and investment management. Contact him directly at 850-267-1068 or at buz@LivingstonFinancial.net.