RIGONOMICS:

Twenty years from now we will look back at this time and say, “That was when the United States of America had the choice to stay a capitalist society or follow Europe as a socialist society.”

President Barack Obama is using his god-given sales skills to do the latter.

This man’s smooth style has the ability to touch the fear of the everyday man while at the same time telling them not to worry, the government is here to solve your problems.

Obama is trying to convince the country that individuals cannot fix the problems they have created and only big-daddy government can help.

He tells Americans who spent and borrowed more money than they had, “It’s not really your fault. Those big, bad bankers made you take out that loan. It is not your fault you overspent on your credit cards; it was President Bush who told you to spend.”

To local and state governments he says, “It is not your fault that you approved pay and pensions for your employees that are unsustainable.”

You see, what Obama does is tell us it is not anyone’s fault. Or it is everyone’s fault. Either way, nobody is responsible for their own actions.

This became more evident when he unveiled his long-awaited plan for troubled housing Wednesday.

Critics are now calling it the “It’s not your fault you bought more house than you can afford” program.

It was more than apropos that he delivered his speech in front of thousands of adoring teenagers at Dobson High School in Mesa, Ariz., because that is how he speaks to all Americans — as ignorant teenagers. Teenagers are not responsible for anything. Don’t worry, children. It is not your fault. Daddy Obama is here to fix it. Then he gives some moralistic pablum about how we better never do this again. Pinky swear?

Through all of our lives, we have all made mistakes, had misjudgments and even plain just screwed up. The difference between an adult and a child is adults admit their mistakes, make restitution to whomever they hurt and suffer the consequences. Children do not admit they made a mistake. “The devil made me do it.” And they never make compensation to anyone they hurt.

The most common bad decision we have made at all levels in this country, from the federal government to our own personal finances, is living beyond our means.

An adult recognizes that and works to solve the problem; a child looks to avoid the problem and hopes someone else, in this case “mommy government,” will pay for our mistakes and we can just walk away.

The problem is our government is spending money we do not have. Obama is giving money we do not have to city and state governments that overspent. He is just kicking the can of the final reckoning down the road.

When you borrow too much money to buy a house the only way to solve it is make more money or renegotiate with the lender the payback terms. The lender will decide what is in its best interest.

Make a deal, or take back the house.

Either way, that is how adults handle the situation.

There is no shame in giving back a home you can’t afford. In fact, that is exactly what you and the lender agreed to when they made the loan.

They agreed to give you money, you agreed to make payments, and if you could no longer make them you both agreed that the only remedy is to give back the house.

Obama wants to treat you and the banks like children. His plan lets you stay in a house you cannot afford and bails out the banks that made a bad loan by paying part of your payment.

The argument he makes is that if we do not do this, these foreclosures will destroy the value of everyone’s home. He scares you.

The fact is in Orange County we have found we are approaching the bottom of the market.

Home sales are up 41.9% from last year because homes are selling at prices buyers can afford.

Bailing out banks and borrowers with our grandchildren’s money will not increase the value of your home.

Only a growing economy will, but that would take a capitalistic society and Obama has decided that we no longer want to be one.

JIM RIGHEIMER is a Costa Mesa planning commissioner, a local developer and a GOP activist. He may be reached at jim@rigonomics.com.