Everyone’s Talking Recession. Why Don’t I Feel It?
You really can’t go anywhere lately without talk about the struggling economy. I read an article recently that highlighted pending layoffs, lowered revenues in the retail sector, plunging home sales.
To quote that author directly: “What happened with Bear Stearns was the closest we have come to a run on the bank since the Great Depression…The 1929 market crash, contrary to what many believe, did not cause the depression–a run on banks over a protracted period of time did.” He goes on to suggest that the war is actually a money-making strategy of the government’s. Very interesting stuff.
Here’s the rub for me, though. Why don’t I feel like we’re in a recession?
I mean, I’m not complaining. But am I so middle class that my life stays the same even in the midst of major economic problems?
What do I mean? I have a good job. Yes, gas (well, diesel!) is expensive, but I can afford it. I’m going on a vacation in June. I still eat out, I have a comfortable place to live, I even have money to give.
And it’s not just me. One of my friends, also in her twenties, put an offer in on a townhouse last week. Then there was a condo I looked at last month, which ended up selling in 22 DAYS!
This article, “What’s the difference between a recession and a depression?,” made things make more sense for me. I think when I hear “recession,” I think of my grandma’s stories of quitting school in eighth grade to earn money for her family of seven. I think of grocery stores being out of food.
That, though, is a depression. Let’s hope our country never gets in that situation again.
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2 Responses to “Everyone’s Talking Recession. Why Don’t I Feel It?”
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I feel very much the same, though I think I may be artificially sheltered because I’m young, live in a big city, and have so many less financial responsibilities. I rent (and split that rent four ways), so there’s no property to pay an escalating mortgage on or maintain, and my landlord pays the gas bill; I don’t drive, and though public-transit fares have gone up, it’s not at all comparable to prices at the pump; and I’m actually declining freelance work, for the first time, because there’s too much to keep up with.
But it’s surreal to know that outside my bubble, it’s quite a different story. I wonder how much longer I’ll be insulated.
Well, many people are having money troubles because they didn’t plan ahead or they just overspent in general. You aren’t feeling the recession because you are smarter than that.
I am not saying that the people who are affected by it necessarily all brought it upon themselves; but when you actually listen to the individual complaints, there tends to be a common thread of being too much in debt in the first place, living paycheck to paycheck and then not knowing what to do when gas prices rise. Or those who borrowed too much and cannot handle their mortgages.
Again, I know that there are some who are innocent victims here. But it seems that most of them could have just planned ahead better like GG is doing.