The standard Macro" class teaches every student that Government should accumulate budget surpluses during good economic times (like we had over the past few years!). That positive balance should then be used when the “business cycle” kicks in and our economy’s activity falls, for whatever reason.

With a nice budget surplus, the Federal government is ready. It can cover any shortfall it will see happen to its own budget when unemployment numbers rise, tax receipts fall, and there is more demand for government unemployment benefits.

The process of accumulating a budget surplus during good times and using the surplus for public need during bad times - is called Stabilization Policy.

Now, whether we citizens should instead be banking that “surplus” in OWN private savings accounts for a “rainy day” need - instead of having the Feds “save money for us” - is an important issue but I will set that aside for now. (Answer is Yes, HECK YES.)

In short, the Federal government should not at this time be in a situation of having to borrow money to fund all the "emergency-assistance," nor should it have the Federal Reserve furiously print more fiat (fake paper) dollars to bail out asset prices. These damaging and irresponsible policies only take us further down the road to more Debt - and inflation. The societal “bill” will come due - we cannot print or borrow it away. It is eventually borne by all Americans, especially the young. Higher taxes will be needed to pay off the larger debt and prices will rise (the “inflation” tax).

Financial planners advise every household maintain "3 to 6 months savings" in a bank account to cover living expenses in case of an unexpected emergency such as car accident or medical issue. Also - unicorns are real, and my neighbor has a barn full of them.

But seriously – the chronic lack of saving by the average American household is entirely the Federal Reserve’s fault.

The Fed should never ever be in its current "business" of manipulating interest rates to keep them artificially very low. Only banks benefit from this Fed activity: banks borrow at the Fed’s (artificially) low rate at the “discount window” and turn around and loan it back to us at higher rate, enjoying the spread as profit.

The rest of us suffer - as we are all placed in MUCH higher risk: Printed money to “ease credit” produces artificially-higher, unsustainable levels of borrowing; it discourages saving; and it incentivizes young people to use credit cards.

If Visa card interest rates were higher to reflect the actual “risk” associated with young borrowers, they would avoid amassing debt and begin to save for things they will need. If interest rates were allowed to shift and change to reflect risks (recurring shocks) and reward savers, we would not all be collectively crying to the government today for “bailouts.”

An author of a New York Times column last week declared, “The Era of Small Government is Over.” This guy sure missed the boat, big dummy – he needs to take a few days off and read a book. Past government and Fed policies have worsened our current situation - not fixed it.

Trillion-dollar "emergency bailouts" are outrageous. Yes, millions of working folks are hurting badly, but BILLIONS in pork (corporate welfare!) were tossed into that bill. The average worker has not even a dollar in savings, and in my opinion that is “thanks” to unsustainable and very bad Fed ‘monetary’ practices.

While the current flu crisis seems overblown - one good thing that may come from it is we'll certainly have accumulated more logistical and other information in order to "plan" for when a truly serious disease outbreak hits.