The Economy

As I am sure everyone knows, the economy is in horrible shape, but it is a vicious cycle. One, that consumers have more control over than they know. I think that politics can play a role in the economy, but that consumers play an even larger role. I detest people blaming the Federal Government for the whole thing, and although people have to take precautions, and need to be aware of what is going on around them, panic never solves anything.

It is a scary time, but to stop spending in a situation like this, only makes things worse. For example, you work packaging plastic zip ties. If you and several others who think like you, decide not to buy the car that you have been saving for 10 years to get, because the economy is bad, an auto manufacturer goes out of business. That auto manufacturer is not longer buying bolts and nuts and this forces the bolt and nut factory to go under.

Once the bolt and nut factory closes, they no longer need the cardboard boxes, and plastic bags that they packaged their nuts and bolts in, or the plastic zip ties to hold those plastic bags shut. You company and about three others have now gone out of business.

So all that panicking that you did, on the off chance you would become one of the statistics, just helped cause exactly what you were afraid of. The saddest part of the whole thing, is that so many will now say that their non-spending was probably justified.

Bottom line? People should always be cautious enough to have a savings account and rainy day fund. Enough should be saved to carry you and your family through three to six months. That way, there is no need to panic, as panicking is never good. It is a sure way to drown.

Just my thoughts. Not to say we are spending a lot in this household, but we haven't cut back.