The facts. The fact is our country is in a major recession. Another fact that is impressive to wrap our minds around is the devaluation of the dollar and an increasing rate of inflation. The last fact that is extremely detrimental to our nation is the ignorance of the consumer. I would like to discuss all three.
First, our country is in a major recession. There is no doubt about it. Everyday, tens of thousands are losing their jobs and businesses are closing its doors. Subsequently, there is a huge increase in foreclosures, deflation of the housing market, and repositions. Many people are having to move back in with their families in various ways, unemployment checks that don't support families have increased significantly, and welfare payments have also increased. Notice a pattern? The pattern is simply over reliance on others for the short-term gain.
Second, another major problem our country is facing is the devaluation of the dollar and rising rate of inflation. So what is driving this rate? My answer is simply the government. The government is providing individuals and business with a "stimulus package" that is meant to swing a slowing economy. Well when the government begins to provide unbacked (i.e. backed by gold, land, etc) funding to individuals and businesss, then the consequence is the devaluation of the dollar. Simply, the dollar is not worth as much. Since the dollar is not worth as much, then we in any market consumers are forced to pay a higher cost for goods and services. Well this doesn't help anyone but those who are enjoying the failures of others in a capitalistic society ran by socialistic market. Basically, we are better off dealing with a recession than having been provided a "stimulus package".
Lastly, the ignorance of consumers. There is nothing that drives me more angry than an ignorant consumer. It's on the lines of adultry and murder. Okay, maybe not that bad. However, consumerism in the US has been based on the notion of using loaned or credited monies to fund purchases rather than from a savings account. So what is happening in our economy is that banks are running out of cash because of defaulting loans. The banks have of a lot of assets that can be turned into cash that we as consumers and business may borrow from; however, no one can afford, for example, the houses the banks are willing to sell from foreclosures. Thus when there is no cash for the banks to offer us as loans or credits, then we as consumers cannot purchase our items. Since we cannot purchase our products or assets, then business fail because of the lack of profit to stay in business. Then as that occurs people lose their jobs and the cycle of losing their homes continues. Therefore, the ignorance of the consumer is that loans or credits would always be available and our economy would always be thriving. Wrong. The need to have a savings account and to stop spending on credit is vital for the regrowth of our economy. As people save their money and use their own money, then I believe a swing will occur, the value will be added to our dollar, and deflation or stagnation of prices would likely occur. There is one caveat to my savings and borrowing idea and that it is okay to purchase some items on a loan or credit basis because, for example, a loan on a home is really an investment.
In summary, I believe our country will continue to fail unless some major sense of self-reliance is obtained by the majority of the people in this economy. This country has some major economical problems. It's time to act now. If there is even a slight possibility of losing your job in the near future, I would recommend you stop spending now, differentiate what is a want and a need, and start saving. I would also recommend that people demonstrate their lack of support for the "stimulus package" that will only have short-term gains and long-term consequences. Enough Said.
Ethan on a real horse!
What a sweet face!
