What Else...................The Economy!

During the course of my short 52 year lifetime on more than a few occasions I have lived through numerous periods of “Downsizing”. I guess this recession we are living in has shaken everyone up to the point no one cares about being “politically correct” and describing this economic period as what it truly is: It Sucks!We are truly at the doorway to the future and although there are many that see opportunities coming up, there are far many more that are dreading the change that is looming on the horizon.Talk to any economist and he will explain that we have built a “consumer” economy that is based on buying the latest gadget on the market. To make things worst we have been buying it on credit.Well, like one huge pyramid scheme it’s caught up to us.This is not going to be a short term “market phase” the shockwaves of this recession have been felt to the cultural core of our way of living and it will surely alter how we have perceived “The American Dream” for the past twenty years.There are many who put on a veil of optimism and point out that “market indicators” are showing that we should be out of this recession by year end. Some are even bold enough to claim that we are through the worst.The term “market indicators” is loosely used by many in the stock market and it simply means that the stock market closed with gains on a sustained daily basis for a period of time. Like drowning men whoever uses this term is simply trying to hang on to whatever will keep him afloat. This I’m afraid means a lot of hogwash to the majority of small business owners. If anything, we can thank the stock market for the continual increase in product prices and decrease in quality throughout the years. It has been the need for stockbrokers to offer “new product” to shareholders that has driven American production overseas and opened the door to “Globalization”, open season on the American Middle Class.There is no benefit to anyone other than shareholders in opening overseas markets and shipping production out as well. We need only to see the number of layoffs and the demise of the entire American Textile industry to see the benefits of “Global Markets”. Let’s face it, “Globalization” has proven itself to be lobbyist talk to improve profit margins for large corporations that had the financing to move their production overseas. I read it many years ago, “When Nike moved their factories to Taiwan did the price of their sneakers go down?”.The bottom line is that the majority of Americans are affected disproportionately when the market goes up and down. When it goes up the majority get a small trickle. A good way to define Reagan Era “Trickle Down-Economy” money certainly “trickles” to the majority of the working class. And when things go bad, the blunt of the catastrophe is definitely suffered by the working class.Another major factor that we have to face is the fact that the majority of American Consumers are turning over 65 in the next few years. Yes, the Baby Boomers have reached maturity and they are going to spend less and demand more of an overburden social security and medicare system that will ultimately fail them during their time of need. Don’t think so? Look at how many pension plans have been sunk in the past 10 years.Although I am not in his political camp I keep in mind Ron Paul who stated a year ago that the cause of this “recession” was simply a case where the market is adjusting itself to supply and demand. In this case the demand for more money for the cost of products….do I hear the dirty word “inflation”. Face it, for the past ten years or so we have been riding an inflationary market but because it has been politically incorrect to use the word “inflation” to the point that it has the effect of a four letter word, economist and politicians have shied away from using the word much less recognizing the symptoms. Consumers simply “charged it”.I shudder to think of a book I read back in the 80’s, “The Great Depression of 1990” by Ravi Batra. Back then it clearly outlined what was going to happen and it clearly pointed out that putting in place more or less the same government quick fixes that have been put in place would only hold back economic catastrophe but not really cure it. I strongly recommend this book and another title by the same author, ‘Surviving the Great Depression of 1990” to get a basic view of what is happening and help you draw your own conclusions and hopefully, solutions.Overall the economy is being handled by politicians and like everything that has gone political…the Korean, Viet Nam War, First Unfinished Gulf War, Current Iraqi War, 1970’s Inflation, etc……the track record for success has hardly been something to wear as a badge of honor. OK, so like everyone else that seems to be able to write a few sentences and get them posted on a blog or newspaper I’ve taken my potshot at the issues at hand. So what’s my solution?Very simple, get back to basics:1-Downsize. 2-Buy only what you really need. Drop the labels. 3-Try to buy made in America products. 4-Cut down fuel expenses-just this week I read the Saudis who hold the majority in OPEC in what I took as a sanctimonious statement that THEY feel the economy at this point can sustain oil priced at 60.00 a barrel. I don’t know about you but I had the impression that WE were the ones that ran our lives not the government and definitely not some foreign conglomerate.Our way of living has changed pretty drastically. For some reason or another after a number of washings those brand label clothes clean the car as easily as the cheaper brands. Our “luxury” cars go as fast as the jalopy next to me on the congested US-1 Highway and my child doesn’t really care that I gave her the latest iPod but rather that I get down on the floor and play Barbie with her for an hour or so.