And, to state that something will not work directly implies one knows what WOULD work, and I think at this point it is safe to say that even the economists who have spent their lives studying this do not really know what will improve our economy. I don't know if Obama's plan will work either, but I am pleased to see him trying something.
Still, I think we have to admit that it is the American people ourselves who are most to blame for the current economic crisis. As Charles Dickens so aptly said:
Annual income twenty pounds, annual expenditure nineteen six, result happiness.
Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.
We have been buying on credit, living in debt, and spending beyond our means for 2 decades, and the bubble has finally burst. Americans are going to have to start living realistically and we're all going to have to be responsible for the economy--its problems and its recovery. And since everyone else is getting to throw around opinions (though usually just about what won't work), here's my 25 cents on how to improve the economy:
1. It seems that the average American will start seeing an extra $13 in their weekly paychecks as a result of the economic stimulus package, which should amount to an extra $50 or so a month. Take that money and patronize your favorite restaurant or stores. Talking about bad economic times is a self-fullfilling prophesy. If you tell eveyone the economy is bad, they stop spending and the economy becomes bad. Jobs are not going to be created until demand is increased. Your favorite places cannot stay in business without your help. This is what the tax cut is for, so let's channel it in the right direction.
2. Stop shopping at Walmart. If something seems too good to be true, it probably is. Why are Walmarts prices so much lower than anyone else's? Because they made sure they didn't have workers who qualified for benefits and sell cheap crap that cannot be manufactured anywhere except in a third-world country.
3. Do business with companies that deserve your business. I spent 5 years in charitable fundraising, and there are companies that one could always count on for donations, help, or contributions and ones that didn't give a dime to anyone. These companies have given a lot to their communities over the years, and I think it would be great to show them that their generosity through the years has been noticed an appreciated. Call your favorite local charity and ask for a list of their supporters.
4. Stop doing business with any corporations with overcompensated CEOs and/or a board of cronies. Are any of us not positively outraged about the bonuses paid to the executives of banking firms in the last year? I believe in getting paid well for doing a good job, but Boise has seen several overpaid under-supervised executives drive our local corporations into the ground (Morrison-Knudsen, Albertsons), then making off with "golden parachutes" worth millions. If that's the way Corporate America is going to play, let's stop playing with them.
5. Buy fewer things, but buy quality items. When I was in college I sold Cutco knives. They were incredibly expensive knives, but they are unconditionally guaranteed. 15 years later, they are still sharp and if I break one, they will replace it automatically--no questions asked. I will never need to replace them, and they are made by actual human beings at a plant in Olean, New York, who receive a decent, livable wage.
6. Accept that some things can't be had immediately. Want a nice television? How about saving up for it instead of buying it with debt? My parents furnished their home one stick of furniture at a time. We saved up for two years to buy a bedroom set, and I'm enjoying it a lot more knowing it is fully paid for. In two more years, we're hoping to find a china hutch. Interestingly enough, we're enjoying picking out furniture piece by piece. and we can look forward to each new thing.
7. Have some long-term financial goals. Admittedly, right now is not exactly a great time to start a savings program as many people are just getting by, but by 2005, Americans had gone from a 9% savings rate during President Reagan's term to a negative .5 savings rate. We not only stopped saving for a rainy day, we had sold off our umbrellas. Conventional wisdom has always suggested having 6 month's living expenses set aside in savings, and nothing has ever changed about that. We just didn't do it.
8. Remember, the news isn't about facts or accuracy--it's about ratings. No one sells a paper or gets a viewer by saying that a 3% stock market drop isn't a "plunge" or that economic cycles are to be expected. Try turning off the news. You might sleep better.
There. It isn't 1000 pages, but I think it might work. And everyone needs a little soapbox time once in a while......:)
We have been buying on credit, living in debt, and spending beyond our means for 2 decades, and the bubble has finally burst. Americans are going to have to start living realistically and we're all going to have to be responsible for the economy--its problems and its recovery. And since everyone else is getting to throw around opinions (though usually just about what won't work), here's my 25 cents on how to improve the economy:
1. It seems that the average American will start seeing an extra $13 in their weekly paychecks as a result of the economic stimulus package, which should amount to an extra $50 or so a month. Take that money and patronize your favorite restaurant or stores. Talking about bad economic times is a self-fullfilling prophesy. If you tell eveyone the economy is bad, they stop spending and the economy becomes bad. Jobs are not going to be created until demand is increased. Your favorite places cannot stay in business without your help. This is what the tax cut is for, so let's channel it in the right direction.
2. Stop shopping at Walmart. If something seems too good to be true, it probably is. Why are Walmarts prices so much lower than anyone else's? Because they made sure they didn't have workers who qualified for benefits and sell cheap crap that cannot be manufactured anywhere except in a third-world country.
3. Do business with companies that deserve your business. I spent 5 years in charitable fundraising, and there are companies that one could always count on for donations, help, or contributions and ones that didn't give a dime to anyone. These companies have given a lot to their communities over the years, and I think it would be great to show them that their generosity through the years has been noticed an appreciated. Call your favorite local charity and ask for a list of their supporters.
4. Stop doing business with any corporations with overcompensated CEOs and/or a board of cronies. Are any of us not positively outraged about the bonuses paid to the executives of banking firms in the last year? I believe in getting paid well for doing a good job, but Boise has seen several overpaid under-supervised executives drive our local corporations into the ground (Morrison-Knudsen, Albertsons), then making off with "golden parachutes" worth millions. If that's the way Corporate America is going to play, let's stop playing with them.
5. Buy fewer things, but buy quality items. When I was in college I sold Cutco knives. They were incredibly expensive knives, but they are unconditionally guaranteed. 15 years later, they are still sharp and if I break one, they will replace it automatically--no questions asked. I will never need to replace them, and they are made by actual human beings at a plant in Olean, New York, who receive a decent, livable wage.
6. Accept that some things can't be had immediately. Want a nice television? How about saving up for it instead of buying it with debt? My parents furnished their home one stick of furniture at a time. We saved up for two years to buy a bedroom set, and I'm enjoying it a lot more knowing it is fully paid for. In two more years, we're hoping to find a china hutch. Interestingly enough, we're enjoying picking out furniture piece by piece. and we can look forward to each new thing.
7. Have some long-term financial goals. Admittedly, right now is not exactly a great time to start a savings program as many people are just getting by, but by 2005, Americans had gone from a 9% savings rate during President Reagan's term to a negative .5 savings rate. We not only stopped saving for a rainy day, we had sold off our umbrellas. Conventional wisdom has always suggested having 6 month's living expenses set aside in savings, and nothing has ever changed about that. We just didn't do it.
8. Remember, the news isn't about facts or accuracy--it's about ratings. No one sells a paper or gets a viewer by saying that a 3% stock market drop isn't a "plunge" or that economic cycles are to be expected. Try turning off the news. You might sleep better.
There. It isn't 1000 pages, but I think it might work. And everyone needs a little soapbox time once in a while......:)
6 comments:
Hear, hear!
Toni, I think I love yoU!
You are soooo right. It's the same over here in Germany. We got careless and now we're paying for it.
Awesome...I agree up in Canada too.
I have decided that I will spend a bit at least once a month at my LYS. A book, some sock yarn.... I want them to weather this storm, not W-m
Exactly!!! I have told people many of the same things you wrote. The more that hear it the better!!
True, and it is sad they act like a bunch of 4th graders naw nawing each other on the playground. And yes I agree, the rebate checks did nothing, sure, made a car payment, whatever, I mean I didn't complain getting one of course, but at the same time you look at that large sum and you know, spread out over that, it is futile. I'm hoping in time (Father Time pisses me off sometimes, but that is for another blog haha) that some of this (and I think it will) help with creating jobs and building new industries. I stopped watching the news for the most part, my head is hurting, of course the news is everywhere I can't escape it....like William Shatner, Stefanie Meyer fanatics (she is taking over the world I am sure of it) or that stupid snuggle blanket thing. Hope all is well!
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