OK people, it’s me again “Laurie”. Today’s blog is dedicated to educating all the Consumers out there who want to know: “When will this Recession end?”
The news has been nothing but doom and gloom for over a year. I have watched many friends, relatives and associates loose their jobs, get reduced hours, loose their house, loose funds in a 401K’s as well as seen many homeless “tent city’s” sprouting up in my own state. I have to admit, it has been pretty bleak. The recession has made its intruding mark on all facets of our society. I do however; believe a good part of our current woes could have been avoided.
Have you ever heard the term “ignorance is bliss”? Most of you have and in certain circumstances it should be used. Due to the mainstream media’s attempt to educate the public on the financial crisis, they made the crisis worse. The media, hosted by an assortment of educated individuals emphasized the problems for over a year without emphasizing a solution to fixing our problems. (And people think the news is unbiased??) People need to understand that the mainstream media is a business. Their job is to generate news that people want to hear. Their objective is to create higher ratings than their competition. Unfortunately, doom and gloom sells. Morbid curiosity of a negative situation seems to draw an individual’s attention more so than circumstances of a happy nature. So I guess in a nutshell our own curiosity is our downfall.
To address the problem, we need to ask; “What makes our economy work?” The answer to that is simple. EACH AND EVERY AMERICANS DAILY SPENDING OF MONEY. Can you believe the answer is this simple? When people think their “rainy day has arrived”, money stops being spent. People will horde their money to make sure their essentials are met. If large numbers of people stop spending money, the results are catastrophic. Consumers need to purchase a company’s services or goods. If consumers stop purchasing a company’s services or goods, the company goes out of business. The people who work for this company loose their jobs. (BUSINESS 101)
So what happened in the good US of A? The people of our economy stopped spending money in unprecedented numbers. This is why our unemployment rate is so high. This is why people cannot pay their bills. This is why people are loosing their houses. You need spending to create jobs, without spending people cannot locate new jobs. The job pays the bills. If the jobs disappear, the bills go unpaid and more companies go out of business. This has put us in a down cyclone effect. With the loss of so many jobs, people are forced to take jobs with much lower pay reducing the individual’s standard of living. Hence, they are no longer capable of paying for the things they could previously afford. I’m sure you don’t want this to happen to you and for anyone who is currently affected, I’m sorry. I’m not saying we didn’t have other problems in the banking area but I feel strongly that the impact would not have been so severe without the compounded problem of job loss. Reason being: Most people make enough to pay for what they have, but when that is reduced or eliminated, you no longer can provide for what you could previously afford. Everything you pay for creates a paycheck for someone else. I believe, if Americans would have continued to spend their money, the foreclosure problem would have been minimized, State governments would not have the crisis they do and the majority of job losses could have been avoided. “We the People” are compounding the problem.
We all want to know “How do we fix this?” This recession will end when we as consumers start spending our money. This in turn will generate jobs. The media has done quite a fabulous job of scarring the American public but it is up to us to educate ourselves and fix this current problem. Some of the programs initiated by the government will help but the main fix needs to come from the American public. We as a whole, 300 million plus, need to infuse our money back into our economy. We will then finally feel the relief from this big mess. After we fix this problem, then its time to tackle Washington and all of the problems there!
Until next time, buy something to help infuse money into businesses (they get busy, they hire more people), go out to dinner (owners and staff make more money, infuse their money into our economy) innovate and start your own business (create new jobs). We need to create jobs. Jobs pay the bills.
Domaine Ltd (RI Jewelry company who sells direct to the consumer- great prices)
Merchants Overseas- (Supplier of all crystal and many different jewelry components- best buy for people who sell or are interested in doing their own arts and crafts)
It’s Your Money! Spend it Wisely!