I would like to start by saying that I am not an economist nor do I have a degree in political science. Now that we have established that I have no credentials in the field of ” the economy”, I would like to offer my opinion on the current economic crises.
Lets face the facts: the high cost of fuel is one of the main factors, as if you have been in a cave and are unaware of it, driving up the cost of most goods. With that being said what do you think is the next factor ( most will never guess) causing our current economic crises? Without any further a due it is…. Oh no wait, that was just too easy. I think you should guess first.
Fuel prices? No, but that is a factor. The average cost of gas in Europe seems to run about $8.00 a gallon. In the US, it’s about $4.00.
Housing cost? No, good answer though, in Japan, a small apartment can cost $1+ million US dollars and before you say anything, yes I know in some major us city’s it’s about the same.
Low wages? what are you kidding! We have some of the highest wages world wide, that is why so many jobs are being outsourced.
These are all factors in our current economic pickle, but the major factor is PRECEPTION. If you think that times are bad and you spread that idea, then it will come to pass and times will become bad. Our general attitude about the economy can change the economy by our simple actions. Let me give you a few examples of ways to improve the economy.
If your old car cost more for oil than the gas to keep it running it for a week and you have been thinking of getting a newer one, then just do it. If you wait for better times you could go broke trying to keep the car you have running. You have just cast your vote for a better economy by doing something that you really needed to do.
Let’s say you have a family of four cramped in an 800 square foot house that is falling down around you. Well this is a no brainer ,at least to me, you need a new home and there will NEVER be the “right time” for some reason or another. Get a new home don’t just sit there thinking about the current economy. Please keep in mind that by purchasing a home you are in fact strengthening the economy.
Let’s talk about wages for a moment. Yes I am well aware that this is a sore subjects in most households, but it really needs to be covered. Minimum wage in our area is almost $8 an hour. thats very high to my way of thinking. OK let me pause for a moment to take out the bullets and knives from making such a statement. Let me explain my thinking about high wages being $8 an hour. Prices of good and the cost to produce the good are directly related, did you know that? To lower the cost of goods to the consumer the cost of production will have to go down, and yes I do mean wages! Wages go down, production cost go down, cost of the product will go down. Just so that there is no miss understanding the strength of the dollar will also be effected in the good way thats a always a good thing.
I will be the first to say that I have over simplified the problem and for that I do apologize. The point I am trying to get across is that if we all do the things that we need to do with a normal amount of fear but but we do them anyway there is an economic effect. I am not saying that you should run out to get a new TV just because you really wanted one, but if your old one is broken and you feel that it is something you need than.. get one.
Strengthen the economy by altering your perception and do what needs to be done.