I just read yet another article about riding out the economic storm, and hoping for consumer spending to rise in the near future, etc…
The reasons we are currently in a recession are vast and varied, but one common trait is unanimously prevalent:
American’s Spend Beyond Their Means and Don’t Save!
- Credit card debt is out of control
- People purchase houses they can’t afford
- The cheapest new car you can purchase is $10,000 or higher
(that’s more than my grandparents paid for their house)
- The entitlement mentality is rampant!
Japan Can’t Get their people to Spend Money
Japan is having the opposite problem we are. Japanese people have a habit of saving far more money than they spend, thus their economy is sub-par according the article I was reading.
Spending below ones means is far better than spending beyond it!
I Pray the Economy NEVER goes back to the “Old Normal”
Unemployment must drop, people need jobs and money to feed and clothe themselves.
But people do not need the level of decadence America has basked in since the 1950’s.
The Old is gone, thank goodness, we need to start thinking like our 1920’s Ancestors who went through the Great Depression and knew what it was like to do without.
If people and businesses alike get used to this New Normal and America does see an economic boom again, we should just keep operating under the New Normal and see any up-tick as a temporary fortune. Take that time to pad the savings account.
Accept the New Normal and Thrive
If we get used to living much sparser than we have in the past, then we will be closer to an acceptable and sustainable way of life. STUFF cannot compensate for the peace of mind that comes with living debt free or with easily sustainable payments.
Stop hoping for the economy to rebound. Settle in and enjoy the simpler things.
Amen brother. I cannot agree with you more, here. The problem is each generation is more spoiled than the last! Many kids my age and younger work less and less but get more and more. Although since the economic mess, I know our public school system has required all high school students to take a personal finance class. It’s a small step but hopefully a valuable one.
Well said. Americans have learned to equate “having lots of stuff” with “wealth” when really the opposite is true.