What put us into our current economic situation? Why are such large numbers of people out of work? Why do well-established banks need federal bailouts? Why do so many people need debt relief? Part of the problem is the natural ebb and flow of the economy. But not all of it. I haven’t studied economics, but I have my opinions. It started at the top and has worked its way down to the little guys who need debt relief programs.

In my opinion, one of the beginning causes was our love affair with large houses. Developers love to build them, and homeowners love to buy them. These homes have been growing and growing and growing. And as prices went up, people have continued to buy. Then home values dropped, homeowners couldn’t pay and couldn’t sell. Foreclosures ensued. This caused the problems that mortgage industry has suffered.

What the country needs now are housing developers who are willing to build more practical homes. Look at the homes built in the 1950s after World War II. Developers built block after block of three bedroom ranch houses. These homes had one bathroom. The dining room was an alcove off the living room. There was no great room and small closets. But these families bring up their little Baby Boomers were comfy and happy. At this point, these houses are fifty years old. If builders would build similar homes now (with maybe an extra bathroom), people looking for a simpler way of life would surely buy.

The second cause of the downturn is the media. Journalists don’t want to lead the news with, “Life is good; the nation is prospering.” If this is the way things are, they don’t want to talk about it. So the listeners, watchers, and readers get it into their mind that things are bad. Then things begin to snowball. The news reporters say that consumer confidence is down. The listeners then become nervous about spending money. Sales go down. More snowballing. With decreased sales, employees are downsized. More snowballing. At the first hint of problems, every news outlet is trumpeting it. The media want to brag about how true their predictions are, but they are setting up self-fulfilling prophecies.

So now here we are. Unemployment is high and debt is rising. What can you do? If you are becoming overwhelmed by your debt and are beginning to fall behind, your first step may be to contact a debt relief service. Look into more than one organization so that you can select the one with the best reputation and that will cost you the least amount of money. If the situation reaches an intolerable level at which you can never dig your way out, you may need to consider bankruptcy. Bankruptcy is a drastic step that hurts your credit for many years, but, after thinking things through, you may decide that this is the best step to take.

What can we working stiffs do to raise ourselves out of this slump? First, think optimistically. Carry on your life as you always have, adding in a spoonful of prudence. Then find a way to be entrepreneurial. In the end, it is the entrepreneurs who will pull us out of this slump.

Share This