What controls the economy – You!
What really controls the economy? Forget interest rates, forget deficits, forget the Fed, forget Iraq, forget who is ruling the country. In fact, forget about everything that makes the news. America’s Job Depression – which is what it deserves to be called – is the worst financial disaster to hit this country since the Great Depression. The world trade decreased significantly, when the countries started implementing trade tariffs to protect their local economies. Many of us are lucky not to have experienced the Great Depression. We do not know what it means to be hungry, to have unemployment 30%, to be not able to find a job, but are we really lucky. Are we not heading in that direction?
Let me say that I do not compare with depression and desperation, and there is certainly a clear distinction between the two. People outside of our country see an American dream with a job, good house, car and a good life. The reality of today’s Americans in 2011 is different: their new American dream is to get out of debt. According to US Bureau of Labor Statistics, the average American household brings home about $ 49,639 (2010) after tax. Housing, transportation and food consume two-thirds of that income. This not only creates jobs but also puts money into the hands of all the people who get jobs so they can turn around and buy goods and services they need – to create more jobs. Not exactly rocket science.
The truth is that we are experiencing the worst financial crisis since the Great Depression era. Originating in the United States, the economic downturn is affecting all the major players in the global economy. The Great Depression was the worst economic crisis in American history, and which spread to virtually the entire industrialized world. When the Fed decides to raise rates, they will be able to say with precision how many companies will go bankrupt, how many people will lose their jobs, how many homes will be foreclosed?
The United States just a few years left of a solid economic growth with a consequent increase in the Dow Jones Industrial Average (DJIA). After that, beginning no later than 2012-13, a terrible decline in the economy will begin and might last until the year 2025. The first step in the fight against despair is to assume responsibility of your own life and your own situation. I promise that if you do not, you will slip deeper into despair.
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- Lehman Brothers: The Rise and Fall of Lehman Brothers. A History that Goes Beyond the Great Depression.
- American Savings: Americans Save an Average of $392 Per Year. Total Consumer Debt is over $2.5 Trillion. The Dark Knight of Debt.
- Global Debt Crisis, There Is Not Enough Money On Planet Earth
Great article.
I to believe you’re time line is right on the money, or I hope it is. There were people who saw the Great Depression coming, prepared for it and lived very well through the 14 years. Intelligent preparation is important right now, while we still have time. Just about everyone knows somethings not quite right with the good old USA. A lot of people in the US want to stay in La La Land and aren’t ready to accept the mental reality. As head of the house hold, I’m preparing for everyone in my family. 10 years from now when I look back, I don’t want any regrets. I do hope and pray things get better very soon, and we don’t have a prolonged Depression. But the Debt Numbers make it a mathematical certainty that the USA will have to experience some pain.