End of the Sucka Ride
(Economy • )
If nothing else, I am cynical. Being a cynic has served me well over the years, and in recognition of that fact I have honed, polished and sharpened my cynicism to a fine point.
So when I read that government action or inaction has helped propel the economy over a cliff, it is easy for me to agree. When I read that the government intends to take action to help put our Humpty-Dumpty economy back together again, my cynicism refuses to allow me to believe it.
But believe this: Whatever else government does, it will not bail out your family. Protecting the fortunes of your family is strictly up to you.
I’ve never seen a time in my life before when the interests of the national economy and the best interests of the American family were so at odds. It appears the whole world’s economy has for the past decade or so based itself on the perpetual drunken-sailor stupidity of the U.S. consumer.
Unfortunately for the world, American consumers have begun waking up from their collective stupor.
For us, a certain new realization began to dawn during the summer of 2007. Our youngest kids were growing and the cramped back seat of the old pickup truck wasn’t doing the job. By then, at least to us, it had become apparent the general trend for gasoline prices had only one way to go: Up. (And despite the current brief respite, that’s still the case.)
We needed new wheels and wanted something that wouldn’t bleed our wallets dry when gas went up the way we supposed. But all the local car lots were filled with gleaming new SUVs and extended-cab pickups. I loved my old F-150, but the gas mileage left a lot to be desired. So after searching for close to a month, we finally found the most economical vehicle that would comfortably hold four people – a slightly used 2007 Toyota Camry. The Prius, hybrid car célèbre, didn’t make the cut.
For one thing, I wanted a used car, to avoid driving off the lot and immediately losing several thousand dollars in Blue Book value. And there weren’t any used hybrids to be found anywhere in greater Houston. And if we would’ve bought new, the math showed that the Camry still was more economical. The Prius’ price was jacked up so high that gas would’ve had to have been $7 or $8 a gallon for a good long while to justify the cost of purchase.
By winter of 2007, we had also begun a self-imposed program of cutting our energy consumption, partly on general principles and partly because I had intended to shut down one business and start up another, and it seemed like a safe bet that there would be a few lean months in between.
By then the national economy pretty much sucked, but government officialdom and business PR types still were trying to put lipstick on the pig and smile away the bad data. Fast forward a year, and it was evident everything had melted down. Now you don’t hear anymore argument out of Washington about whether it’s a recession or not. Listen for the same argument in a few months, only this time they’ll be swearing we’re not in a second Great Depression.
But my cynicism tells me we are, economic bickering over official definitions notwithstanding.
As is the case with so many others, both my wife and I have felt for the past few months that our jobs are at serious risk, and either one could evaporate at any time. We have been working on cutting every unnecessary expense. And we also had been paying off the Camry car loan at an accelerated rate. Earlier this month, we paid off the whole thing. Now our mortgage is our only remaining debt, and both the monthly payment and interest rate are low.
I suspect many other suburban American families are on the road to a similar destination: Dumping their gas-hog vehicles, refinancing their homes if their mortgage terms suck, slashing their expenses, cutting out the spending of “disposable” income and saving it instead in the event one spouse loses his or her job, if they haven’t already been laid off.
This is prudent, and it’s exactly what you should be doing for the protection of your family. But it’s not in the interests of the national or world economy.
Thus we have The Stimulus.
If so much of my tax money weren’t at stake it would have been almost funny to watch as the government experts tried to jumpstart the Beast by force-feeding hay into its ass end, which is to say, the banks.
Meanwhile, what they all really want – government, the banks, the retailers, the real estate agents and home builders, the car makers – is for you and I as representatives of the American family to stop doing what’s prudent and best for our families.
They want us to buy a new house, another car and a new set of plastic Chinese lawn furniture, and a new washer and dryer. And charge most of it, if it all possible.
But that ain’t happening. No. 1, because a lot of moms and dads have woken up to the fact that consumption for its own sake is financially stupid and, No. 2, they’re either laid off or afraid they’re going to be laid off, and they really can’t afford to be financially stupid any more.
So this time, when the economy comes crawling back on its hands and knees (in about 10 years, so my cynicism suggests) it will have to be based on the one thing that promotes real consumer confidence: Real full-time jobs paying good wages and benefits, from companies with real prospects for long-term financial success who really value their well-trained and experienced work force.
What we absolutely do not need is a continuation of a service-based, retail-based economy feeding off of buyers of useless plastic gee-gaws while offering peanut wages to everyone not employed in the petroleum sector.
That probably means, at the least, a few true major technological advances in the energy sector are required. And that probably means that if the United States intends to be at the forefront of any economic expansion, then U.S. government, universities and businesses better start ponying up some real money on research and development and start making a good college education available to the masses, before India kicks our collective uninventive ass.
Until then, I think it’s safe to say the collective American family will be cutting the fat and saving every spare penny for the financial emergencies that almost certainly will befall most of us in the coming decade, as the rest of the world slowly wakes up and realizes we aren’t your bitch anymore.
→ B.Dunn, Feb 12, 2009, 06 16 am
Hello, Bob Exactly!
Kat’s exhuberant revelations?
1) Never EVER take this “loved one” for granted.
Imagine…
I’m more beautiful than that!
2) Never EVER be convinced “stay-at-home” is your “trophy title”.
Imagine…
I’m deeper than that!
3) Never EVER be convinced perseverence is not of your “blissful” heart – [endure, dream] “blue eyes” open sans shut.
Imagine…
Worthiness is as deep as that!
XO
— Kat_Princess Feb 12, 09:09 am #
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Robert Dear,
I’ve been cutting the fat so long, I’m delving into muscle.
It does look bleak. And probably will continue to look dire until something amenable to Americans of both political parties can be agreed upon. I don’t foresee that happening any time soon. One wants to tax…the other wants tax cuts. Mexican standoff played out under the rotunda of the U.S. capital.
Yes, something must be done and to Obamafy the wealth by spreading it around ain’t it. I’m thinking Communism for some odd reason.
Hell, even a one thousand dollar gimme to every red blooded citizen is hardly enough to ease any real fiscal pain.
I don’t have the answer and sadly, what’s scarier is that neither does the government.
One more thing, Bobby—what’s the deal with my name marked through on your “local color” section? Huh? I thought our blogs had a…you know….a “thing”.
LK
— Laurie Kendrick Feb 12, 11:28 am #
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Oh the name mark-through? That's just web development gone mad. Once you visit one of the links on the right during a particular visit, that link crosses itself out to show you've been there recently.
Since you came from there, you kinda crossed yourself out.
Just changing color like a normal visited link prolly woulda been better. No connotation intended, just another example of fancier not necessarily getting the job done as well.
— Bob Feb 12, 11:49 am #
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Speaking for myself, I cannot even fathom looking the O’ guy in the eyes— much less read his lips. Sorry, I’m mystified, and wandering….
— Kat_Princess Feb 12, 11:59 am #
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