Economics for Kids 101

I took the kids to McDonalds a few days ago after one of my daughter's evening classes. There was a TV on in the corner with no sound. It was on CNN and was showing lots of pictures of the stock market, dollar signs, and to all too familiar downward pointing charts we have all come to love in recent months.

She asked me what they were talking about. Specifically they were discussing Obama's proposed mortgage bailout. To say I am not in favor of bailing out deadbeats that don't pay their bills would be an understatement. I said "They are talking about how to help people that can't pay for their house." I nearly lost my grip trying to hold back my tounge, but what else do you say to a six year old.

That answer, however, was not enough for her. "What do you mean?" Okay, I tried to let it go, but she insisted. So I'll tell her what is really going on. But how do I do that for a young person. "See that hamburger you are eating. What if you had saved your money and bought that hamburger, so now you get to eat it. Now what if somebody else came in who didn't save their money. Should you have to buy them a hamburger?" (I admit the analogy is not perfect, especially since I bought the burger she was eating, but the principle was sound) Unlike our leaders that seem to be forever pondering these "complex" decisions, she immediately and simply replied "No."

"Well, that's what they are trying do with houses. We paid for our house. Now other people can't pay for their house, so the government is trying to make us pay for their house." Her jaw dropped. She obviously got it. Like many in this country, she seemed to like Obama during the election cycle. I've got to admit, they guy has charm. I tried to not say anything to her against the man, especially since he is now the President. I say that so you understand I had not primed her with a bunch of Obama-bashing. "Obama did that?", she asked, accusingly. "That is what he is trying to do." I said.

And with that my six year old solved the problem: "He should be kicked out."

Government officials try to make things complicated. Often it is anything but. Just apply the same simple rules we teach our kids when they play with each other. Treat each other right. Share (if and when you want to). And don't take other people's stuff!