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The Silver Lining…..

With the myriad of bad economic news constantly in the forefront of our lives these days, it’s interesting to stop and consider a few truths.

Take the following paragraph from a lead AP article last week:

http://www.amarillo.com/stories/121308/bus_12016280.shtml

WASHINGTON – Consumers reduced their spending at retail stores again in November while the costs of goods before they reach store shelves also continued to drop, more bad signs in a recession that appears to be deepening. Businesses also cut their inventories by the largest amount in five years, the government said Friday, a sign the recession will force further cuts in production.

Depending on how you interpret the above paragraph, will determine how you react to it. Effectively it says prices are coming down on the shelves of America and Americans are saving more (if spending less) of their hard earned dollars, and business is responding quickly to consumer behavior.  The remainder of the article projects the ramifications in the economy if this behavior persists. I don’t know about you, but I’ve cut every ounce of fat I can out of my budget, and I will cut muscle if necessary to maintain budgetary order at home. I guess I’m part  of the problem!  Americans are the most under saved people on the planet, literally, yet lay claim to the largest most dynamic economy in the history of economy!  It’s about time we begin to save a little more and spend a little less, isn’t it?

Sure, Americans will loose jobs. Hardship will follow. Psychiatrists are warning that many Americans have fended off depression with their luxury purchases, and predict depression cases will soar in the coming months. If restrictive buying behavior persists the recession will deepen in proportion to how long consumers withhold their dollars from the marketplace. People may have to be retrained and reeducated. Our economy will adapt as consumers dictate what is and is not worthy of their money.

If current consumer behavior continues, or Heaven forbid, becomes an adopted discipline with Americans, what might be some long term effects we will endure.

1) We will buy what we need

2) We will buy what we can afford

3) We will have less credit card debt

4) We will have a choice to help others less fortunate as they re-acclimate into the job market

5) We may be healthier (Less eating out, less stress over debt, less me me me-ing)

6) Less demand for county dump sites…ok…this is one of my Jayism zingers…….My theory: As Americans, we spend inordinate amounts of money for “stuff”. Our spending behavior for this “stuff” is fueled by our personal insecurities and unquenchable desire for peer approval. This “stuff” after a short period of time invariably ends up at the county dump. Last time I dropped a load of of my own “stuff” at the county dump, I noticed, no kidding here, a Cabbage Patch Doll mushed in with all the dump refuse.  As some of you will remember, people in the ’80’s were willing to pay hundreds of dollars in the Cabbage Patch rage days for one of these dolls. Another expression of love I suppose for a loved one, none the less after a time, tossed to the endless junk pile of excesses. Only in America!

7) Our Children will learn the value of the dollar bill and discover a self respect that comes with hard work and accomplishment.

8) We could discover just how much we DON”T need to have meaning, contentment and purpose in life.

9) Retirement may actually be attainable

10) In good conscience, after experiencing the fruits of budgetary constraint, we may vote leaders into office that platform fiscal responsibility, balanced budgets and expose porkers to the populous that will in turn vote them out.

To think that the sustainability of our country’s world economic dominance hinges on how often the average American goes to the Mall, is appalling. (Consumer spending accounts for roughly 67% of our GNP)  If Visa and Master Card rethink their respective credit models, our country may have to File Chapter 11. Can’t you hear it one day, Grandpa, how did America become a great economic power……….Well, Grandson, you know that Walmart down the road….here’s a fifty, go get you some stuff! When your grow tired of it, and you will,  there’s a dump outside of town, Jay’s Junk, throw it away there and earn Retail Bonus Coupon Points at your favorite discount outlets, Saturdays are daily doubles. America is counting on you!

All kidding aside, maybe there is a silver lining, a blessing of sorts for each of us, in the coming recession in America…………….Let’s hope so.

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