Unicorns & Rainbows

The Budget Doctor’s Advice on Common Beliefs

Consumers who believe everything they read or hear may think that mermaids swim in the sea, unicorns prance in fields and there is a pill that can help you to lose twenty pounds and the first 50 callers get it free. Some also believe that the world ended on 1/1/2000 but they are beyond help. The fact is, there are people who will say anything to make a dollar or just to draw attention to themselves. Wise consumers should assume that everything you read on the Internet or in the newspaper is wrong.Consumers who believe everything they read or hear may think that mermaids swim in the sea, unicorns prance in fields and there is a pill that can help you to lose twenty pounds and the first 50 callers get it free.

A great example of this is the advertisement that claims that there is a government program that can eliminate consumer debt. All you have to do is call an 800 number and someone will explain it to you. Of course there is no government program to eliminate consumer debt and even if such a program existed, do you think there would be paid ads and sales reps to help people with it? People who get government help have lobbyists, so unless you have a lobbyist, you should assume that you are responsible for all your actions.

We are lucky to live in a nation where lies can be told with little risk of punishment and where it is up to each consumer to make his or her own decisions about what to believe on any issue. That means that there will always be ads for risk free ways to earn 25% interest on investments and there will always be ads about helping people get out of debt easily. Of course there is no way to earn 25% interest without risk and there is no painless way to get out of debt. Consumers who survive the avalanche of lies and half-truths that pass for news and advertising are likely following:

The Budget Doctor’s laws of lies and omissions:

1. Virtually every news story contains an error or omission.
A two minute television news story can never explain the complexities of the story. A newspaper will be very happy if only four or five serious errors are observed in an issue. The Internet is a treasure trove of incorrect and misleading information.

2. The job of advertisers is to mislead you.
Many television and radio shows are fully paid for by the featured organization but are not labeled as infomercials. Many ads in newspapers and the Internet masquerade as news stories and have headlines. Headlines will tell you that you can eliminate dental plaque and a footnote may tell you that one common side effect of the treatment is death. Any story that advises readers to call a phone number is an advertisement.

3. The emails you get and blogs you read are unlikely to be true and accurate.
You will not die because you failed to forward an email and Elvis is not alive. Andthe plug for that company on the discussion forum is almost certainly not an honestreferral.

4. No one is giving you anything good for free.
You will not get free investment advice that is good. You will not get rid of your debt for free. A product offered free except for shipping and handling is not free. A free lunch with a financial planner or time share company may be very expensive.

5. People who do this kind of advertising will do other bad things
t may not be illegal to lie to consumers and mislead them, but it is unethical. People who have low ethical standards will not only publish misleading ads, they will also over-charge and take advantage in any way possible.

The ads concerning a government sponsored program to eliminate debt are frequently sponsored by debt settlement companies. Debt settlement is nearly always a bad thing for consumers so the worst players engage in this misleading practice hoping that a few consumers will believe this obvious lie.

Thoughtful consumers understand that a government would never just pay credit card companies to forgive debt. After all, who do you think killed the unicorns? I read all about it on the Internet.