Saturday, February 14, 2009
The New Great Depression
I try not to be a pessimist, it’s a struggle at times I’ll admit it, but it’s been even harder lately with all the talk about the economy and how we’re heading towards a recession. I am by no means an economist (their psychobabble makes my head hurt), but I did take microeconomics, macroeconomics, and personal finance in college and I feel like I have a better understanding of the economy than most lay people (mostly because most people don’t care or don’t have a need to care). That being said, I think we’re headed towards some serious hard times. It’s not that we didn’t know they were coming either, we’ve been putting off these hard times since the 80’s following the stagflation of the late 70’s. We’ve (the we in these scenarios is America) been slowly drowning ourselves in debt. In the year 2006, for every 20 dollars an American earned, they spent 21 dollars; we’ve obvious lost some concept of thrift. I can see it with people my age (I’m almost 25 btw), they expect to graduate college, get married and have the same standard of living they’ve been accustomed to when they were living with their parents. What most people fail to consider is that their parents might have had decades to accumulate the things they had, I think of my own parents who have taken 17 years to really remodel our house because they didn’t want to go into debt to do it. I don’t know what the answer to this is, maybe we need to have some hard times to get back on track or maybe it’s not going to be as bad as some people say. Here’s hoping.