Good Politician

By Kristy Annely

By Greg H. Lions

The U.S. currency could be useless within a few years and the Americans still don’t understand what is happening to their economy. If you’re an American and looking at this, there is no better time for you to understand more about your country’s financial system than now. Your nation is facing a national debt crisis and this problem should be corrected as soon as possible. Considering the fact that the national debt issue will not go away in 1 year, programs and plans need to be started now.

Being a U.S. citizen, you must know that your country’s national debt has climbed to unprecedented heights. It’s now up to $14 trillion and will continuously increase in the next years. Citizens of the U.S. may not be feeling this issue in any way considering that the government is trying so hard to show the economy is under control. They do this not only to shock consumers but to give protection to their investors as well.

If you are still unaware, a government debt is funds borrowed by the government to finance the requirements of a nation mainly during periods when the spending is more than what the government can shell out. Whenever the government borrows money, they don’t trade cash; they use treasury bonds and get private firms, banks and other nations to invest in these bonds. Such bonds are promissory notes that include the amount of the debt as well as the interest rate. The bond will also include the time period in which the debt should be paid completely.

There are many people or businesses that opt to purchase government bonds. These investors feel that the U.S. government will get back to its feet in a few years and they’re going to gain from their investment. There are some who really just invest to make a profit from the debt. Bonds are available on the stock exchange to private individuals, companies as well as other countries. Investors view this as an advantage for them because it isn’t risky at all. However, with the substantial government debt the U.S. has today, many investors will think twice about purchasing government bonds. Some will even be instructed to sell their investments if the credit rating of the U.S. economy goes down.

It is difficult to blame a single person for causing the current government debt problem. The budget deficit problem has existed for 40 years and it continues to increase over the years. The recent financial meltdown and global recession are contributing elements to this big rise in the country’s deficit. And since the U.S. has been spending a whole lot in the last years on health benefits and most of all for the wars in the Middle East, the money coming in isn’t even close to what the nation is spending which makes the government borrow more money.

As a U.S. citizen, how does the government debt influence you? There could be a sudden rise in taxes as this may be a part of the government’s strategy to earn money and pay off debts. There are also talks about decreasing government financed programs such as Social Security and Medicare. No matter what happens, all Americans will be effected one way or another. Congress must consider all options on August 2, when they are voting on how to control the current government debt issue

By Alain Burrese

Nolo, the publisher that is passionate about making the law accessible to everyone has published one of the best guides to Social Security retirement and medical benefits for the layperson. Like other Nolo books, “Social Security, Medicare & Government Pensions: Get the Most Out of Your Retirement & Medical Benefits” by Joseph L. Matthews with Dorothy Matthews Berman is written by an attorney, but in language anyone can understand. It is a very good book to help understand Social Security benefits that include retirement, disability, dependents and survivors benefits as well as Supplemental Security Income; the basics of both Medicare and Medicaid programs and how to compare medigap insurance plans; medical coverage options such as HMOs and other plans; government pensions and veterans benefits, and just general advice for anyone thinking about retirement.

The nearly five hundred page book is divided into sixteen chapters and an index. Each of the chapters contain easy to understand advice on the chapter topic, with side bars, tables, cautions, lists, and additional resources. The organization of the book makes it easy to quickly find the parts most relevant to your own situation or needs. Again, the book does a very good job of providing basic information regarding the topics in an easy to understand way. The chapters or topics include: Social Security, The Basics; Social Security Retirement Benefits; SS Disability Benefits; SS Dependents Benefits; SS Survivors Benefits; When to Claim Social Security Benefits, and Which One to Claim; Supplemental Security Income; Applying for Benefits; Appealing a Social Security Decision; Federal Civil Service Retirement Benefits; Veterans Benefits; Medicare; Medicare Procedures: Enrollment, Claims, and Appeals; Medigap Insurance; Medicare Part C: Medicare Advantage Plans; and Medicaid and State Supplements to Medicare.

The book will give anyone a good understanding of these programs and how to navigate them. However, the difficulty comes with the ever changing of such programs and how they are administered. Yes, Nolo updates the books, and I’m reviewing the 15th edition, but things still change fast at times. I see this book as helping people understand what is what as they work with government officials and administrators in the system, or at times, work with an attorney to assist them with certain issues concerning benefits.

The other problem I see is that none of us know what will happen with these government programs. Some suggest they may disappear, others are not so gloomy. There is a good chance things will change. But for now, if you are navigating these waters, Matthews has put together a very good book to help you stay off the rocks and keep afloat. I recommend it for anyone who needs information about these programs.