There is much anxiety associated with the current economic downturn, and for good reason. Many are losing jobs, the poor and lower classes are suffering greatly, housing values have fallen and 401Ks are decreasing in real terms.
Many of these indicators will bounce back somewhat, but this recession appears different than the others and will have longer-lasting effects on our lives. It is what former Federal Reserve chairman Alan Greenspan called a “once in a century” event which means it is serious.
And this is happening for a reason. While our economy has given us great prosperity, we have been doing many wrong-headed things to bring this mess upon ourselves. So this recession will cause us to change the way we conduct our lives and our business and, in the long run, will make us a better nation.
So consider what this downturn should be teaching us:
*If we cannot go to Las Vegas for the weekend, or buy that new kayak or that new stereo system, then perhaps we will think less about the material things in the life and more about what is really important. It is amazing how much a warm home on a cold winter day seems like a wonderful thing when we previously had taken it for granted.
*If we decide to stay home instead of taking that one-day 300-mile trip to the Big City or to visit a friend, perhaps we can think about what really matters to us. And we will use less gasoline. This is the quickest way to “create” energy – by not using it in the first place, and is one of the reason energy prices are dropping. So if we drive less, it is better for the environment and reduces our use of valuable natural resources.
*If we cannot afford to patronize Starbucks to buy a $4 coffee, perhaps we will appreciate what it means to sit home in the kitchen and enjoy a 10 cent home-brewed cup of coffee talking with our spouse or our kids, or reading a good book on the couch. And maybe we can enjoy a home-cooked meal instead of all those expensive dinners out.
*If our house value drops, perhaps we will come to realize that home values were inflated to begin with, and that these inflated values were not realistic. So if your house now is worth $300K instead of the $500K you thought a few years ago, then it is worth $300K. Period. Get used to it.
*If we ran out and bought homes to get in on the “hot” housing market, perhaps we should not be so intent going forward on being part of the latest craze or trend, but should think more rationally about how we spend our money.
*If we bought homes with no money down and cannot afford to pay the mortgage, perhaps the laws of economics are telling us that we should not be taking on the responsibility of owning a home in the first place.
*If we racked up excessive credit card debt through zealous spending, perhaps we will be more careful in the future.
*If Fannie Mae and Freddie Mac – which hold half of all the mortgages in America – collapsed, perhaps that is a sign that we should not be issuing mortgages to people who are not creditworthy as Fannie and Freddie allowed, and that we should not be allowing government agencies, run by liberals, to be setting the parameters by which people purchase the most expensive item of their lives – their house.
*Many of the big liberal newspapers like the New York Times are on the brink of financial disaster. If these publications go out of business, that will be a happy outcome for our nation. The New York Times plans to borrow up to $225 million against its mid-Manhattan headquarters building to deal with a a potential cash flow problem in a time of shrinking profits. Meanwhile, Tribune, publisher of the far-left Los Angeles Times – filed for bankruptcy under $13 billion in debt.
Far-left Newsweek magazine is planning big staff cuts as part of a move to a smaller publication. It also may cut the number of weekly copies it promises to advertisers from 2.6 million today to as little as 1.6 million. Many other publications are on the financial brink.
And so as a result of this recession, perhaps we can move forth with less left-wing propaganda in the air. Hooray!
*Liberal states that have been spending wildly for the last 30 years now have to start living within their means. This means cuts in inflated budgets that they normally would never make. This will put the libs more in touch with fiscal reality. Our federal government also has been giving away hundreds of billions of dollars every year for nothing, and now it must stop.
*Americans will start to think seriously about creating wealth through manufacturing things, rather than just getting money through funny-money transactions, paper wealth and other ‘soft’ wealth appropriation techniques. Wealth is created when we make things. Now with people coming face to face with reality, perhaps they will be more accommodating to a new generation of real manufacturing productivity here in America rather than allowing all the ‘factories’ of the world to go overseas.
*With Americans suffering economically, we need to start cutting the government bureaucracy and wasteful spending and allowing people to keep more of their own money because now it has become a matter of survival. We no longer have the luxury of taxing more and more and more of the nation’s wealth away from the citizens. They simply do not have it.
*We must reconsider all the environmental extremism that is halting economic development all over the United States and forcing us into bad policies. Unnecessary and bureaucratic enviro restrictions are killing jobs everywhere. And we must realize that the trifling energy return on investments in wind power, solar power and ethanol are not even feasible for the energy we need for the future, and that we must spend our investment capital wisely or we will literally run out of energy.
*The Democrats are being exposed for who they are. After decades of running up huge government tabs with wasteful spending, they suddenly don’t have the money to fix roads and bridges and schools and other infrastructure items. This is bunk. Democrat-run states have wasted billions beefing up their bureaucracies while neglecting the infrastructure which belongs to “the people”. So now they are saying they are out of money. They are not. They just wasted it on their corrupt party practices, as conservatives always have publicly charged.
*And finally we can see that is it rich liberal Democrats who have been running much of our financial system and destroying it. Fannie Mae and Freddie Mac, whose collapses set off the whole housing downturn, are run by the Democrat party; Bernard Madoff, the biggest investment swindler of all time, is a big Democrat contributor; the two men who ran the fabled investment bank Lehman Brothers into the ground – Jim Johnson and Richard Fuld – are both big-time Democrats; the man who looted Fannie Mae for more than $90 million, Franklin Raines, is a big-time Democrat operative; while the Community Reinvestment Act, a piece of liberal legislation from 1977, forced banks to lend money to low-income and moderate-income people without any guarantee that they could pay it back, setting off the current housing crisis. Much of Wall Street today is liberal Democrat. Don’t let the media fool you into thinking otherwise.
If a man is an incorrigible drunk and he finally crashes his car and finds himself bleeding in the gutter – as America currently is bleeding economically after years of bad policies – that man may finally realize that it is time for him to change his way of life.
This is what this recession will teach us, and in the long run we will be much better off for what we should be learning from this wrenching period in our history.
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