Have you had enough of recession-talk yet? I’ve finally reached the point where if we are in a recession, or if we will be in a recession simply doesn’t matter. U.S. economic growth has slowed down in many areas. It may slow even more, or it may pick up a bit. In either case we’re muddling along looking for new ways to grow the economy. It’s really not that bad statistically, and yet even with mild economic data, the nation’s mood is gloomy.
“If you compare where the economy was at the end of March [2008] with where we were at the beginning of the year, there is no question the economy is down by just about every measure,” said Martin Feldstein, the former chief economic adviser to Ronald Reagan who now heads the National Bureau of Economic Research, which formally “declares” U.S. recessions.
Many folks are worried about the job market and are struggling with the worst housing slump in decades. But it also seems that talking about what’s wrong with the economy is like a sport or play-by-play event for the media these days. Everybody’s asking, “Are we there yet?” while some people proclaim that the recession is just beginning.
“Even if the capital markets crisis resolves, it does not mean that this country will not go into a bad recession,” said JP Morgan Chase CEO James Dimon, whose bank saw its first-quarter profit fall by half due to the recent collapse of the U.S. mortgage market. “The recession just started.”
Well, okay. That’s all fine and dandy. But while the media keeps looking for a story to spin, one of these days people are going to tire of all the negativisim and look for more positive, constructive approaches to daily life and rebuilding the economy.
It is an election year of course, and the politicians will continue bashing each other for what’s wrong with our current situation. But they had better start thinking about 2009. Whoever wins the election this year is going to have their work cut out for them. I don’t know about you, but come next year I want all the problems solved! Lower gas and food prices, a growing economy, a rising stock market, and peace across the world. A little unrealistic to be sure, but sometimes we need to step back and gain a little perspective.
It could always be a lot worse, such as for the more than 18,000 people in China or between 60,000 to 100,000 people in Myanmar who have perished in recent weeks. Katrina was pretty bad, but was not even comparable to what these nations are dealing with. In Myanmar the government is barely acknowledging the devastation and not allowing humanitarian aid to reach the people who need it. And while the people of Myanmar wait desparately to get help, their government is keeping the food for its own purposes. That’s one of the problems with dictatorships. The numbers of human lives affected are staggering to consider, and what is left for the living will take years of rebuilding.
From the context of natural disasters, most of us are doing pretty well. Regardless of how gloomy one feels about the U.S. economy, it’s really pretty darn good compared to most places around the world. We’ve talked about recessions before, and what’s important.
But on an individual level I submit that what you call it really doesn’t matter. What matters is what we are doing individually and collectively to improve opportunity and economic well-being for ourselves and our families.
Nobody enjoys paying so much money for gas, or cutting back spending in a lot of areas just to get by. But this is where we are, and I find myself looking for ways to appreciate and improve our lives regardless of the challenges. We the living must continue to grow and build our lives and families. When the economic news starts getting tiresome, a little perspective goes a long way.
Sphere: Related Content2 comments - Post a comment
« Fuelish Thoughts and the Family Frugal | The Spending Loop: Why Do We Buy What We Don’t Need? »
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
Spoken like a person that has never been through a depression. “Oh things aren’t that bad and when should we expect prosperity to come sweep us away again”. Sorry, not this time. The worm has turned and the increasingly debt laden US economy is reaching twilight.
You will probably say “well things will get better, they always do”. But have you looked at the debt progression? Dude, it is not getting better. It’s getting exponentially worse. Soon foreign countries will stop buying our debt (tbills) because they will rightfully lose faith in our ability to repay the debt. Then we will get hyperinflation and you will get to see what a shit sandwich really tastes like because you will not be able to afford real food.
So fiddle on while Rome burns, young democrat. Party like it’s 1929, young republican. Ignore the warnings of statesmen like Ron Paul. What you get will be more of an education than you can currently imagine.
Hi Dave- Thanks for stopping by.
Hmmm… you certainly have a stark view of things. No, I have not been through a depression. I’ve been through a few recessions, and spent a lot of time traveling the world seeing the good, the bad and the ugly. We may face the challenges you describe at some point, and we may not. But I have a more optimistic, hopeful view of life and the economy. And I believe much more strongly in our country. Naive? Maybe.
But if it gets as bad as you imply, I think there will be ways to manage and take care of business, home and family. Even during the depression, contrary to the panic meisters views, most people did okay. It wasn’t easy, but they managed. I have several family members who lived through just that. They grew gardens, stored food, found odd jobs to bring in extra money, and everyone helped out. We’re a long way from a depression scenario, but we may face a lengthy recession or slow growth period.
What really bothers me though is when I read your words I sense a wry smile on your face as if you take pride in thoughts of watching the economy fail and people struggle. Why is that? There are a million negative doomers around to offer pessimistic views on life, the economy and even their own country. But what are you contributing? What are you doing to make things better?