Right now we are in the worst economic meltdown since the Great Depression. Every week it seems like the economy is getting worse. What is it that has gotten us into this position?
It has to do with the fact that average savings rate among Americans is -1% annually and the average amount of credit card debt is $8,000 per household with a credit card. Our politicians are saying that people need to go out and spend money to get ourselves out of the recession because that's how we got out of the Great Depression. But will this actually change anything or just postpone the economic pain? Right now we are in a recession/depression due to our huge levels of debt, so how will spending money fix the problem? It will just add to the debt that we have and Obama's plan to spend a trillion dollars will only add to the national debt and ultimately make our economy worse even if it improves things a little in the short run. It's like putting a bandaid on someone who's hemorrhaging.
I think this is due to the mentality that we have as Americans that we can find happiness by having lots of material things. If politicians where to tell people to save money they would become unpopular but is this what we need now?
What is your take on what is happening and what do you think would make the economy better for the long haul?
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