The “economic crisis” is complicated, yet simple enough for the average person to understand. So here it is: There’s no money. Simple, eh? lol Well, there is a bit more to it than that.
More accurately, there is less money. Our economy has been based on credit for 25 years. Manufacturing, real estate, commodities–sales in every sector have been driven by the availability of credit.
Credit is supposed to be temporary, but the absence of responsibility in our society has allowed us to borrow money to pay off debt. Much of the collateral used was valued based on continual growth in real estate. Eventually, the market ran out of buyers, prices collapsed, those who were allowed to purchase with no down payment or were approved for a mortgage they could not afford lost their homes, then the market crashed and many banks found themselves with a bunch of worthless homes that they had used as collateral to borrow money… The bill is due and now we are all going to wash dishes for a very long time…
What has been called a “credit crisis” and “economic crisis” is really a spending crisis. We purchased things we didn’t need with money we didn’t have. Now we are being told that the solution is to borrow a huge amount of money and invest it in dying technologies and sectors of the economy. The solution to the problem is not more of the problem, especially when most of the money will go to the people and corporations that drove our economy to ruin.
The plan is that billion dollars will be borrowed, plus interest on this new debt, and interest on the huge debt we already have, to “stimulate” the economy. So, they are going to borrow from the next generation to pay for the mismanagement of this generation.
Our economy does not require financing to continue the materialism and consumerism that have created an ecological disaster. If we are going to go into deficit, then every dime should be an investment in our future that aims to correct the misguided ways that got us into this mess.
In difficult times for individuals and nations, we should remember where our happiness comes from, and separate wants from needs. “The economy” can mean many things, in times of economic depression, we should measure the success of the economy by our ability to provide a quality standard of living for those hurt by our collective denial.
Save your money, spend wisely, reduce your expenses. We”ll get through this ; )