We’re Only Hurting Ourselves.

August 24, 2010

We, as americans, have long been characterized as people who have pulled ourselves up by our boot straps.  We boomed in the industrial revolution and create an economy that has been the largest in the world for decades.  We worked hard, fought for our share, and built the american dream.  We were able to benefit by being on the forefront of production and technology.  Other countries were not so lucky. Many of these countries are on the African continent.  Let’s look at some of their struggles, and let’s see how we have evolved.

Africa has some issues with being short-sighted, most recently an example in agriculture.  Uganda has a booming tobacco industry.  Last years alone they exported 32,000 tons of tobacco leaves.  That fetched $52,000,000 in revenue, and let’s be honest, that’s major cash flow in Uganda.  In order to cure the leaves of the tobacco they need wood to burn.  Well, as an agricultural nation they have some trees to burn.  Fruit trees.  They are simply taking water from the left side of the bucket to put on the right(this is a simple illustration as a bucket does not have sides).  This has driven up the cost of wood in Uganda, wood that is needed for the emerging furniture industry, construction and wood is still widely used to heat homes.

This is a difficult cycle to get out of, where problems are cyclical and one leads to another to another.  Fortunately, for us, we had to opportunity to develop and work through these problems, right?!

The oil spill has been horrific.  Finally it is closed and BP can start to take credit for that.  BP has put away a huge amount of money to pay pack individuals and businesses who have lost money as a result of the spill.  They will pay anyone who can provide them with a tax form showing how much they earned last year.  Well this presents a problem for some of the fishermen who work as a cash only business and didn’t pay taxes last year.  Uh oh.  So they didn’t pay taxes, but now are complaining to the government that they didn’t pay for.  Call it karma, call it whatever you want, seems like if you didn’t pay taxes, you didn’t earn anything or it is tax evasion. Easy decision for the person handing out thecash.

Maybe this wasn’t a good example of how we have developed and advanced as a nation.

Let’s look at another major problem in our country.  The housing crisis.  This is multi-layered issue but let’s simplify it dramatically.  People are buying homes that they cannot afford.  They are then foreclosing, declaring bankruptcy, something to get out of the loan.  The government has come to their aid demanding that the banks help them out.  So the financially irresponsible are getting bailed out and are staying in homes that they cannot afford, while citizens who live within their means are forced to pay for it. 

Maybe we haven’t come that far after all.

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