The news reports that the recession is over. Maybe it is, my 403b account is up and we are all still employed. The latest figures show that only 11,000 more jobs were lost in November. All good news. My thoughts though are not so rosy. There have been millions of jobs lost during the recession and IMHO, those jobs are not coming back. This means that the people who lost jobs will have a hard time finding new employment and what employment they do find will be at lower wages.
Right now everyone is aware of the need for frugality and that in order to save, one must spend less than one makes. You could even say that frugality is chic these days. But at some point this newness will wear off and the reality of a lower standard of living will set it. It won't be a pleasant realization that you really don't have the money to do the things you once did or have the things you once had, that in all probability you will never have them again and that your children aren't likely to fare any better either.
I think that once the novelty wears off, there will be an awful lot of weeping and wailing going on. There will be a lot of political finger pointing and blaming and not much of it based in reality. The definition of middle class will change and more people will have a lot less. What will make this such a difficult time is that reality will not match expectations for a lot of people. I just hope that we can get through this period with minimum civil, political, and international unrest. These are real possibilities IMHO.
4 comments:
Florence,
Well, I've come to realize that yes, indeed, I have to accept living on less. Our income dropped by 30% and at our age, I don't see it coming back (because we'd have to work 2 and 3 jobs). My realization has been that we won't be able to go to Italy or travel to Europe ever again, as we planned. Less income, falling dollar value and inflation have made it nearly impossible. So, I've resolved myself and accepted it.
Instead, DH and I decided since we still want (and love) to travel, we are saving up to buy a travel trailer and will set out to see America instead. The Grand Canyon and all the (free) National State Parks throughout this great land of ours.
I've consoled myself by saying that at least I've already been to Europe a few times, but what about all the younger generations? Will they be able to afford travel there?
Also, we Americans have spent way to much money over the past decade buying STUFF. Did we really need 12 pairs of designer jeans, 50 Victoria Secret bras, bigger houses and cars.....and the list goes on and on? There is no reason why we can't have a sustainable lifestyle now, in today's dollars. It isn't as bad as we think it is going to be. The new reality suits me just fine. Truthfully, I like and enjoy living frugally, having respect for the environment and all it's resources. I'm looking forward to our new way of living. And I am hopeful, that yes, one day in the future, I can go back to visit Europe. When I do, I will treasure my time there much, much more.
Morrison, As always you are very wise--you have reconciled your expectations to the new reality. You are finding creative ways to survive and thrive on less. I am not so confident that others will be so amenable to learning new skills and lowering expectations. We certainly live in interesting times.
Florence,
I don't know how long you have been following my blog, but if you recall, at least 1 &1/2 years ago, I was a very angry woman! Why? Because I was starting to feel my world collapse around me. I couldn't keep up my lifestyle. At first, I thought it was just me but then, it was the economy, stupid! When I first realized I couldn't return to Italy to see my family, I was livid. Gradually, we couldn't go out to eat anymore, or go to the movies. What used to be a hobby and personal choice-being frugal-slowly became my new way of life.
Nope it wasn't easy to make the adjustment. I went kicking and screaming all the way.
But, what can we do? We must be agile and survive. Eventually the rest will catch up to us. Once, you make the transition, it's not as bad as I thought. Prioritize. That's the key. Realize what is and is not important in your life, calculate your dreams and goals and keep moving forward.
Best regards to you and your family.
Keep the faith.
you are so right i really do not know when things will get better
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