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Keli Goff

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Can Your Congressman Balance a Checkbook? (No Seriously, You Should Ask)

Posted: 08/01/11 11:53 PM ET

I've often joked that people end up in politics or media because they can't do math (yours truly included), but at the moment my joke is not looking like such a laughing matter. Though much of the coverage of the debt-ceiling debacle has focused on the political divisions it has reinforced, there appears to be at least one thing that this mess has probably helped Americans agree on: Many of our elected officials know a lot less about finance and economics than those responsible for the financial future of an entire country should. Even more terrifying, many appear to know even less about such matters than we do. (If you have managed to do things like pay your taxes and child support in full and on time, you're already well ahead of a few of them.)

As I noted on The Dylan Ratigan Show, both of the major political parties invest resources training promising candidates on the ins and outs of media interviews, fundraising and general politicking. But instead of investing in these types of classes (and the consultants who teach them), it appears that many of these candidates turned congressmen, would have been better served investing in, and enrolling in freshman level accounting and economics classes.

I have previously written about the irony of elected officials with their own financial woes lecturing the rest of us on fiscal responsibility. (Here's looking at you Rep. Joe "Tea Partier/Deadbeat Dad" Walsh. Click here to see a list of the most financially challenged members of Congress.) So this latest round of political posturing has got me thinking. Maybe we've been asking candidates the wrong questions all of these years. Instead of asking questions like, "Have you ever cheated on your spouse?" or "Have you ever smoked pot?" how about asking "Have you ever bounced a check?"

And instead of just having litmus tests for specific issues like gun control, maybe the time has come for us to administer more practical, real world tests to candidates seeking political office to gauge their knowledge of real world financial issues. I'm not joking. Maybe the test could be administered with a timer during a televised debate, perhaps providing us with some quality reality TV for a change. So what would such a test consist of? Well below are a few suggestions that could possibly help us establish whether or not a candidate for office is qualified to have any say on our financial matters, or at the very least whether or not they are smarter than a fifth grader. (Feel free to add your own additions in the comments section below.)

Candidate Money Matters Pop Quiz

  1. Using only your current credit card balance, monthly minimum payment, and interest rate as a reference, please calculate exactly how long it will take you to pay off your current balance. (No cheating by glancing at your statement or calling a credit card customer service rep.)
  2. When was the last time you balanced your checkbook? How often do you do so? (Bonus points: An imaginary checkbook will be provided. You will be asked to balance it in the time allotted.)
  3. The median American income is 45,000. Pretend that you are not a six figure earning elected official or elected official-to-be. But instead pretend that you are earning a 45,000 base salary, like one of the "average" Americans you are seeking to represent. How much do you need to set aside each month to have an adequate three-month emergency fund?
  4. How much does it cost to raise an American child from birth to adulthood? (Bonus points: Approximately how much do you need to set aside specifically for higher education for one American child?)
  5. Without using any sort of reference for assistance (such as google or a campaign aide), please define what a FAFSA form is. (If your first response is "What's a FAFSA form?" Please put your pencil down and turn in this test. You are disqualified from seeking federal office. Or at least you should be.)
  6. What is the current value of the U.S. dollar compared to Euros?

What am I missing? What financial questions do you think elected officials should prove themselves capable of answering before posturing that they know more about fiscal matters than the rest of us? Please share your thoughts.

Keli Goff is the author of The GQ Candidate and a Contributing Editor for TheLoop21.com, where this piece was originally published.

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06:38 AM on 08/03/2011
You're missing nothing, our politicos on the other hand, are missing the basis of all senses, common sense!
serena1313
Condemnation w/o investigation is hgt of ignorance
03:57 AM on 08/03/2011
Iam certainly not an economist, however, after several years reading about the economy I at least have a basic understanding of how it works and what caused the crash, etc. which is a lot more than I can say about some of our lawmakers in Washington who keep telling us that we have a debt crisis. We don't. We have an unemployment crisis.

It is really simple to understand: Companies cannot make a profit without customers to buy their goods & services. But when people are unemployed & don't have money to spend, businesses start cutting expenditures by shedding more of their work force. And everything comes to a screeching halt as a result thereof. In order to get the economy going again, the government has to step-in temporarily.

In contrast Republicans argue, "We cannot spend our way out of debt," "Raising taxes on the job creators will stall the economy," etc. Their solution: more tax cuts & spending cuts. Companies do not want or need tax cuts, they want customers. People want jobs, not government hand-outs. Government needs revenue to operate.

I don't know if those lawmakers are willfully ignorant, blinded by ideology or just plain lazy or all of the above, but I do know they should not be making fiscal policy decisions. If they really wanted to reduce the debt, they would be implementing policies that puts money in the pockets of the real job creators.
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clemmers
The rich require an abundant supply of the poor.
10:28 AM on 08/03/2011
I agree with your entire, well-written, thoughtful post. I would add that these lawmakers are beholden to wealthy donors who finance their incredibly expensive campaigns. That's what drives political decision-making now. Also, some of these lawmakers have their donors' lobbyists write the laws for them, and when they retire, they'll have nice cushy think tank "jobs" waiting for them.

That's why their decisions don't make sense. They're no longer representing us - they're working hand-in-glove making deals for themselves and their wealthy campaign donors.
serena1313
Condemnation w/o investigation is hgt of ignorance
06:06 AM on 08/04/2011
Thank You.

Yes, many lawmakers, not just in Washington, but at the local and state levels, too, are beholding to wealthy donors. The T-partiers (freshmen House Republicans) and other conservatives, willing to do the bidding of billionaires David & Charles Koch, are handsomely rewarded for passing legislation -- mostly copied & pasted from ALEC.

A great deal of the Koch money is also funneled thru PACs, think tanks ($28.4 ml), and foundations such as CATO ($13.6 ml), the Heritage Foundation ($3.4 ml), the Reason Foundation ($2.4 ml) as well as other groups i.e. Freedom Works, Americans for Prosperity, etc...

According to Senator Bernie Sanders (I-Vt), the Koch brothers ultimate goal is to dismantle the government. I believe that is true, just look at all the millions of dollars they are spending & that does not include the millions of dollars from corporations and other very wealthy donors.

If -- it is still a pretty big if -- they manage to, god forbid, succeed the American people won't know what hit them. We have a lot of work to do between now and the next election. Notwithstanding this is just a small taste of what lies ahead.
03:53 AM on 08/03/2011
I would add one more question - who is the US' largest trading partner, and what fraction of the US trade do they have? Hint - it has been the same country for many decades.
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skwan91607
Favor to Internationalism
11:57 PM on 08/02/2011
WHAT IS AMERICAN CONGRESS MEMBER ?
Question to a congress member: "Can you balance a check book ?" The answer is either Yes or No. It does not matter as long as he/she acts as a DOG (anther name of Obedience) of 'YES" to the corporate Boss. He/She is qualified to seat in congress. They can be a higher ranking if they can hold HOSTAGE of something to force government to go along. They are called TEA PARTY."To save America" by "Creating more unemployed first". Ones who led Americans to a HUGE MESS claim now "To save America". Hold you breath and wait for what they want, to cut, cut, and cut. How can you survive without fighting back.? .
10:09 PM on 08/02/2011
A mortgage adds tremendous debt onto families compared to their yearly income. Graduates with loans and no job are in major, major debt. Banks exist to lend credit to businesses and entrepreneurs. Investments. The Founding Fathers created a financial instrument designed to consolidate/assume and manage state debt accumulated during the Revolutionary war (i.e. the United States of America). It is more important to strategically invest/manage debt then it is to balance a checkbook.
07:11 PM on 08/02/2011
Just make them pass a teaching credential exam from a random state since they like bagging on teachers so much.
03:52 PM on 08/02/2011
I would like them to have to take the same test as they make people seeking citizenship. Lets see if they really know about our history and constitution. It drove me nuts during the whole debt ceiling debate when Bohner kept saying the President had not presented them a plan. Budget bills need to start in the House. Duh!
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clemmers
The rich require an abundant supply of the poor.
10:34 AM on 08/03/2011
Let's not forget some of the hilarious historical revisions presented by some purported presidential candidates. Some of the Tea party Congressmen revealed their ignorance of the debt ceiling and lawmaking process during interviews and had to be schooled by reporters.

It's astounding how low the bar has fallen. It does no good for our country to be run by people who know nothing of its history and governmental process.
03:38 PM on 08/02/2011
Come on. I'd venture to say 90% of Americans couldn't answer those questions. Truth is most people get elected for the following reasons'
1. They've promised slimy deals to bigwigs and lobbyists who provide a bunch of campaign money.
2. They play the race card or class war card.
3. They put the most signs on lawns in neighborhoods and most people remember that name.
4. They're rich.
5. Some group puts out an ad stating their opponent wants to kill seniors, children and destroy the planet.
6. They promise a bunch of free stuff to people.
I'm sure you can expand on this list. I've grown too wearisome to continue.
03:37 PM on 08/02/2011
Here's one: If a family down the road from you has massively overspent for many years and is now bankrupt, would it be a good idea to give them a new credit card if they promised to cut spending 10 years down the road?
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clemmers
The rich require an abundant supply of the poor.
10:42 AM on 08/03/2011
Pretty irrelevant, since a household is nothing like the federal government in form, function or scale.

Does a household issue bonds? Print its own currency? Work with foreign governments to borrow, lend or provide foreign aid? Maintain military services and declare war? Manage cash flow in the trillions on a daily basis? Didn't think so.
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vaf112675
Read my comments. You'll know me by them.
03:27 PM on 08/02/2011
"Can Your Congressman Balance a Checkbook?"

Considerig all the stupidity and idiocy being displayed this past month I'd have to go with a big resounding NO!!!!! to answer your question.
03:25 PM on 08/02/2011
Congressmen should also spend a day with me talking to small business owners, something I do every day. Businesses are buffeted by new regulations on the state, federal and local level, and small businesses can't afford a full-time compliance officer.
I'm sure the individual workers who think up these regulations really think they're doing society a favor by protecting us all from ourselves, but the sheer magnitude today and unbridled growth over the last few years makes following regulations a huge time sink for business owners who'd rather be paying attention to business.
Big example: rules in Dodd Frank directly contravene existing SEC rules. Follow one set of rules and you're breaking another. It's out of control, and too many small business owners are ready to throw in the towel. I sure am tired of it.
The worst part: they still think we need more regulations (yesterday's news item: free birth control).
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clemmers
The rich require an abundant supply of the poor.
10:50 AM on 08/03/2011
Agree that there is a tangle of conflicting regulations that make life difficult for businesses. Congress has a lot of cooks stirring the pot.

But you must admit that some regulations are needed. For instance, I worked for an environmental engineering firm that made a good living cleaning up chemical spills left behind by polluting companies, big and small. Many people had poisoned wells and suffered from diseases and birth defects because of the pollution. Most companies got away with no penalty whatsoever.

Oppressive and contradictory regulation helps no one. But let's not throw the baby out with the bath water.
03:11 PM on 08/02/2011
Love the FASFA qualifier, having just gone through that exercise. We made the horrible mistake of putting money aside for our kids' education beginning when they were born, so we get to pay full freight...to two colleges now. Love it when the college dog & pony showmaster says "we provide financial assistance to X0% of our students!". How do they do it? By slamming us hard for saving for nearly two decades. There are tens of thousands of good reasons to be financially irresponsible with college expenses. We learned that the hard way.
The incentives for reckless financial behavior could only be conceived by Congressmen as unqualified as the author paints them.
03:40 PM on 08/02/2011
You can take solace in the knowledge that you did the right thing. I spent four years in the Marine Corps and two years in Americorps to pay for my college. I never got a single grant or subsidized student loan. Tuitions would be much lower if the government would stay out of education and not provide grants and guaranteed loans.
04:50 PM on 08/02/2011
From your posts, you seem to have come through it all just fine.
Thanks for the perspective.
03:00 PM on 08/02/2011
good question!
itolduso
lateral thinker
02:59 PM on 08/02/2011
it'd be better if they knew a little history too
02:37 PM on 08/02/2011
Very good article. I remember having this discussion in 1985 at a dinner where a man said how much Reagan had boosted the economy. I said in the last five years we've all had actual credit cards fall unsolicited in our mailboxes, signed them and bought another couch. We all got a lotta couches but how much more money are you earning every month? It was during those two terms that Americans forgot that there was a difference between saving for the couch and buying the couch on credit. Mainly that you spent the other money anyway on an ottoman or something. Basically, we all had less but were taught to think of it as more. But credit is always giving money to someone way beyond the actual cost because of your impatience. Before credit cards--yes, there was a time and it wasn't so long ago--that kind of impatience forced you to the loan shark. But that guy actually looks out for you. He won't let you owe more than you can ever pay, and the thought of a broken knee tends to keep you on a strict payback schedule and not blow his vig on another couch. The credit industry takes no such care of you and lets you sink because the lower you go the more fees they make. There are two economies: the one you see and the one swimming below you saying--candygram. Too big to fail means we are lunch.
03:13 PM on 08/02/2011
Lesson: take responsibility for your own debt.