Republicans and Democrats alike have lamented the American
public’s financial illiteracy over the past few months as the economy nosed
dived; what were those sub-prime lenders and borrowers thinking? According to Gary Dick of
Inside Indiana Business, we may be seeing the latest installment of financial
illiteracy in the form of Hoosiers wary about the looming taxpayer bailout of
GM, Ford and Chrysler.
“Not well educated…”
Kokomo Mayor Greg Goodnight and Marion Mayor Wayne Seybold
have convened a summit in Indianapolis
next week to ostensibly study the impact of letting one or more of the Big Three
fail. In an interview with Mayor Goodnight at Inside Indiana Business, Gary
Dick wrote,
“Kokomo Mayor Greg Goodnight says he doesn't think Hoosiers are well-educated
about the consequences of the Big Three U.S. automakers not receiving a
bailout.”
Just how much does financial illiteracy costIndiana?
I think I just heard, “so many Hoosiers are financially
illiterate that it is becoming politically difficult to rally the public in
favor of an auto bailout.” For now, I’ll pass on whether improved financial
literacy would make a case for or against a bailout. But the overarching issue
is our sad state of financial illiteracy, which is well documented, and seems
to fuel the things that keep burning. To whit:
- Financial
illiteracy helps Hoosiers spend $5+ per day on cigarettes and $zillions
for somebody’s future oncology practice;
- Financial
illiteracy helps Hoosiers drop out of high school for a rich (“rich”)
factory job instead of getting a diploma and higher degree;
- Financial
illiteracy helps Hoosiers—especially poor Hoosiers—buy flashy sparkly
Powerball and Hoosier Lottery tickets with statistically zero chance of an
Return On Investment instead of a bank certificate of deposit with a
guaranteed profit (I know, I know…don’t get difficult with me).
2 out of 3 ain’t bad, but isn’t 3 a charm?
Thankfully, Governor Mitch Daniels
and the Micky
Mauer-like economic development champions of Indiana have focused like
lasers on the first two items, and groups like the Indiana Economic Development Corporation have
done a first class job of bringing new opportunity to the state.
But, why are we tolerating that third item?
For better or worse, Mayors Goodnight and Seybold indeed
have a challenge before them next Monday.
Christopher Mann is a publicist in Fort Wayne
.
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