Pondering financial madness on my Snow Day

A snow day has kept me from leaving for the field for an extra day.

So while I wait at home on "standby" I decided to catch up on the Daily Show.  A recent episode interviewed Helaine Olen, author of "Pound Foolish: Exposing the Dark Side of the Personal Finance Industry."

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(the gist of the book)

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We were sold investment strategies as a way around income stagnation and income inequality.  For 30yrs our incomes have fallen, net worth plunged 40% between 2007 & 2010, and this entire industry (everyone from Suzie Orman to CNBC) built up, "hey we have the answer."  They were selling products to "help us" instead of asking "what is wrong with our society that 50% live paycheck to paycheck.  Empires of personal finance built up as a response to lack of pensions.

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Definitely an interesting topic considering how much the personal finance industry makes off of people in pursuit of (1) a reasonable income and (2) a retirement.  Remember the "old days" of hard work, commitment, and pensions?  Those are long-gone as companies can no longer afford offering that in today's climate (unless you're in the military, and that is often threatened).  Was that really a better system?  In some ways I think it was - more stability anyway.

I remember taking a personal finance course in college and thinking...the system is SO complex, insurance, buying a home, paying taxes, etc.  My opinion of much of the complexity is this, man-made complexity is a frosted glass designed to sit between people and those who would take advantage of them.  Much like the Wizard of Oz.  I'm not saying that ALL of the complexity is malicious, but considering the events which have taken place in the finance industry over the past decade, I'd say it's foolish to believe it's all meant for our benefit.

I'm not selling Helaine's book.  My bottom line is, I think we should demand a more simple (and transparent) system than we have today.  I don't think that we have to accept our current tax code as the best way.  It along with many other financial policies should be reformed.  I know this is an ongoing issue that never seems to be resolved, but like many good causes, I think the fight should continue.  Special interests can shell out billions of dollars to keep a system in place that benefits a few...it will take all of us demanding better.  Aside from that, save yourself money and don't buy personal finance merchandise!