Economy and the R-word
I really try not to impress my political views on my readers, but something has been bothering me and why have a blog if you can't use it to get things off your chest? The talking heads of the media have been flogging us with the question of recession - are we or aren't we in a recession and if we aren't already in a recession, are we headed that way, and if we keep talking about it, will it happen, and is there any way out? Linked very closely with the recession fear is the "housing crisis." Everyone I've heard talk about the possibility of a recession says something about the "housing crisis." But here's what I don't get - my family budget has been tightened so tight it hurts. Literally. Ouch. But we didn't get a subprime loan. We aren't wondering how we're going to deal with rising interest rates. Instead, we're wondering how we're going to deal with rising gas prices, rising food prices, rising health care costs, rising heating costs, and skyrocketing health insurance costs. Those things have nothing to do with subprime mortgages. So, here's my opinion - I think the media has chosen to focus on the housing crisis. It's convenient. Gives us a scapegoat.
But that ignores the fact that there are a whole lot of people out there without subprime mortgages who are struggling. In our country, the rich are getting richer. Take a look around you at the businesses in your community. Those lucky few in the top tier are living quite well, while the workers who are producing the product, assisting customers, keeping the cogs turning, etc., etc., are struggling from paycheck to paycheck. In the past year, we've paid off a credit card and a student loan, but we don't even notice it because that "extra" money gets sucked up because the cost of living has increased so much. What can be done about it? We keep plugging away, both of us working full time, packing brown bag lunches, staying home to watch TV instead of going out to the movies, shopping at resale shops instead of the mall. Does this help the economy? Not a bit. Do I like living like this? Not a bit? Does it allow us to put anything away for a rainy day (not to mention retirement)? Not a bit.
So that's my take on the economy and this recession. I don't think we're heading for a recession because of a subprime mortgage "crisis." I think we're heading for a recession because the cost of living has outpaced the growth of salaries. We've moved from a one-income society to a two-income society. Personally, we couldn't make it on one income - my husband's income barely covers our health insurance premiums and house payment. Mine covers everything else. You know, those extra things like electricity, water, food. What's next? A three-income family?
I certainly hope that is not what the future holds for my daughter.
But that ignores the fact that there are a whole lot of people out there without subprime mortgages who are struggling. In our country, the rich are getting richer. Take a look around you at the businesses in your community. Those lucky few in the top tier are living quite well, while the workers who are producing the product, assisting customers, keeping the cogs turning, etc., etc., are struggling from paycheck to paycheck. In the past year, we've paid off a credit card and a student loan, but we don't even notice it because that "extra" money gets sucked up because the cost of living has increased so much. What can be done about it? We keep plugging away, both of us working full time, packing brown bag lunches, staying home to watch TV instead of going out to the movies, shopping at resale shops instead of the mall. Does this help the economy? Not a bit. Do I like living like this? Not a bit? Does it allow us to put anything away for a rainy day (not to mention retirement)? Not a bit.
So that's my take on the economy and this recession. I don't think we're heading for a recession because of a subprime mortgage "crisis." I think we're heading for a recession because the cost of living has outpaced the growth of salaries. We've moved from a one-income society to a two-income society. Personally, we couldn't make it on one income - my husband's income barely covers our health insurance premiums and house payment. Mine covers everything else. You know, those extra things like electricity, water, food. What's next? A three-income family?
I certainly hope that is not what the future holds for my daughter.
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