All of us get caught up from time to time with our brain in the wrong place. As an investment professional, I see people who need to be conservative, are in fact trying to be careful, yet the steps they take can be radical. I mentioned this to a friend the other day and his reply was Cognitive Dissonance. He encouraged me to find an article he’d written and published. Here it is…

Cognitive Dissonance is an uncomfortable feeling caused by the brain holding conflicting ideas simultaneously. All the hubbub over how we need to cut the ‘crushing tax burden’ is a good example.

All governments; federal, state and local, are slashing budgets as tax revenues decrease. Why are tax revenues decreasing? 2 wars not paid for. Ten years of tax cuts not paid for. A prescription drug benefit not paid for. Not the least of these was a Wall Street meltdown and resulting mortgage crisis that really and truly gut local government budgets. When people can’t pay for their homes, they don’t pay property taxes.

Governments provide services. Which ones should we get rid of? Roads? Schools? Law Enforcement? Fire Department? Parks? Street Lights? Veterans Services? Childrens Services? Eldercare? Public Transportation? Juvenile Justice? Jails? The Post Office? These are all ‘socialist’ services to which we have grown accustomed . . . and because we live in a community, not a crowd, we want them, and need them.

The TEA Party and those who champion the fiscal ‘conservatism’ that brought us to this point, are proud to support these ‘conservative’ policies; like extending a sunsetting tax cut for millionaires and billionaires, while opposing unemployment compensation for those that struggle to pay for basic necessities. Turns out, they are supporting the very policies that reduce and forestall their own upward mobility, and cause local governments to make tough choices about who gets what services. Something’s got to give.

In 1976 the top 1% of the population took in less than 9% of all pre-tax income. By 2007, 23.5% of the nation’s wealth was in the hands of one percent of the people. That doesn’t leave much for the other 99% of us. While the gap between the rich and the poor expands, those getting the short end continue to support those ‘sticking it to them’.

One would think that those supporting ‘conservative’ principles would, by now, have an uncomfortable feeling caused by holding conflicting ideas simultaneously. ‘How long before their heads explode?

by Bill Richards on Monday, November 29, 2010 at 9:11pm