BETWEEN THE LINES: A timely truth from Genesis

Something has been lost in transition between the Great Generation of the Depression Era and the subsequent Baby Boomers after World War II. Parents of the post-World War II offspring failed to instill the values of thrift and savings that governed their actions during those difficult days. In their quest to make a better life for their children, they gave them too much and required too little in return.

Once upon a time, people saved money first before spending it. Buying on credit was virtually unheard of. Banks made loans to customers who were worthy of the risk. People would set aside money until they had sufficient savings for a substantial down payment on their mortgage, while paying cash for other items. They would save for that proverbial rainy day.

Perhaps they learned this valuable lesson from reading the story of Joseph from the Old Testament book of Genesis. Joseph, who was sold into slavery by his older brothers, eventually ended up in Egypt

With hard work and good fortune, he gained the confidence of the pharaoh and became a trusted adviser until his career was derailed by the Egyptian leader’s wife Potiphar. She falsely accused the handsome young lad of attempting to seduce her.

In reality, it was the other way around.

Jacob’s youngest son was imprisoned, but ultimately Joseph regained the pharaoh’s confidence. At the young age of 30, he was given considerable power. He managed the country‘s food supply. During the first seven years of his tenure, the harvest was plentiful. Showing great wisdom, Joseph stored away the surplus so that when famines came, the country had adequate food supplies.

Because of his foresight, Egypt survived the subsequent seven years of drought and pestilence. The simple concept of preparing for the unexpected saved Egypt from destruction.

Unfortunately, today’s governments around the world have done the exact opposite. As a rule, they borrow during the good times, oblivious to the fact that prosperity is never guaranteed. Consequently, the governments are out of money when they need it most.

For several decades, the central banks of the world accommodated their countries’ appetites by printing more money and selling bonds to other banks and other nations. The byproduct of this approach has been a steady decrease in the value of the dollar, with the end result being increased prices.

During the past few weeks of the debt-ceiling debate and the following aftermath, reality is beginning to crystalize in the minds of many Americans. The Dow Jones closed Monday off 650 points, posting a loss of 2,000 in a short span of time. The question now being debated is how low can it go?

On Aug. 5, Standard and Poor’s rating service lowered U.S government bond ratings to AA+ from its traditional AAA status. S&P even indicated it would be prepared to lower it even further if it appears Congress and the president are not serious about bringing expenses in line with revenues.

It now is obvious to most Americans there is an absence of leadership and integrity in Washington. Our elected representatives from both political persuasions have failed us. Pointing fingers is a useless gesture as there is plenty of blame to go around.

Those who have put their faith in government and the Federal Reserve to save us are going to soon learn how powerless they will be to control the forces they have released through reckless spending, and a horribly flawed tax code that for far too long has catered to various interest groups.

Laughlin is a Christian Libertarian. He is an economist, teacher, father, husband and most recently a grandfather. He has written a weekly column for The Tribune for 12 years. He and his wife Gina reside in Meadowlakes. To contact him, email ablaughlin@nctv.com. He is an independent columnist, not a staff member, and his views do not necessarily reflect those of The Tribune or its parent company.