I understand completely the importance of optimism about the future when it comes to social, political or economic change. One has to believe in positive future outcomes if one is to invest time, money, effort and hope in projects that will not come to fruition for months or years. I get it and, more importantly, I buy into the proposition that tomorrow grants us an opportunity to better ourselves and the world. So why do I find it irksome when companies hype the future, or when commentators pounce on some obscure economic indicator and turn it into the harbinger of prosperity? The new Charles Schwab ad says "Dwelling on the past won't help my future. Do something about it." Very paternal, Chuck.
I think most people's problems from the economic downturn are not grounded in the past; rather, it's the present and very immanent future that most of us are contending with: drained retirement accounts, loss of jobs, cut hours, lack of available credit... While there is no doubting that years from now we'll look back at the 2008-2??? depression and laugh or grimace, but now is the time to think clearly about what we should be doing with dwindling, threatened or otherwise reduced resources. Pretending, as suggested by the Charles Schwab ad, that we're out of the woods and that our reluctance to go whole hog back into the stock market, or supermarket for that matter, is based on an irrational reaction to past events is foolish to say the least.
Prudence is called for. While it might be tempting to bet on the stock market or take out more credit to get out of our current financial doldrums, we should be looking instead for sustainable solutions. Americans should not re-adopt their role as the world's economic engine. As we are finding out, the growth in the world's economy from 1995-2007 was largely based on consumers and companies overextending themselves on credit, on insane financial commodities and an irrational belief that real estate can leap in value year after year...forever. What a difference a year makes, no? How about more sustainable investments: a car that uses less fuel, appliances that use less energy, solar tiles for your home, community investments that bring quality of life returns, or an investment in education? These things won't make you rich, but some will allow you to save money and others will contribute to a genuine sense of well-being, which is what all the over-leveraging lo these many years was supposed to do, right? Here's to hope!
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