Why Economic Recovery is So Slow
Our economy stinks right now. Around 4 dollars for a gallon of gas, produce prices through the roof, grocery trips breaking the bank. It’s really unpleasant, especially because unemployment is still high. Thankfully, with the debt deal being “settled” and unemployment steadying itself in July, the stock market has a little hope. But, why has this process been so slow? What is holding us back?
Debt. I’ve talked about debt a ton on this site, especially because my own experience with money has been a struggle with debt. It’s something that plagues the United States, no different than the diseases that run rampant in Africa. Okay, well a bit different; debt isn’t fatal, unless you’re looking at your financial health.
As I mentioned the other day, I think that a lot of it is a psychological issue. In our minds, we have made credit this “safety net,” where if we look for it as a mini-loan. “Oh, I’ll pay it back when I get paid.” Interest accrues; we end up not being able to save money or spend it.
Now, the good news right now is that people are getting out of debt. Bad news? Because people are so focused on getting out of debt, they aren’t putting money into the rest of the economy, which so badly needs it. Until people truly get back on their feet and out from under the burden of debt, we’re going to continue to see the economy stuck.
Is there anything we can do? I’m not sure. The government has already put organizations and laws in place to protect consumers from debtors. What else can they do? Nothing really… I think that the government has done too much already; between the bailout (which, in the short term was okay) and almost holding consumers hands when it comes to their mistakes.
I am a huge advocate for education. I help many of my students with schoolwork, with thinking about future plans, even with schedules. Yeah, I may have missed my calling as a guidance counselor, I don’t know. But anyway, I know it’s really important for us to be educated; knowledge really is power in my mind. I think that education may be the key to us getting out of debt.
The debt problem can’t be solved through knowledge alone; people obviously have to apply what they know, or it’s useless. But, look, even our government officials don’t really get debt and how to balance a budget; they have to depend on raising the debt ceiling in order to be able to balance it, and honestly, that’s just dumb.
We put so much energy into standardized testing that we don’t always provide students with ways to get practical knowledge. Financial wellness classes are not required (in some places, neither are physical fitness classes, which is also on the list of dumb things). Why not? Why can’t we have a half-year class on budgeting, how to balance a checkbook, and all the other things people should know before going out on their own?
Oh that’s right, because we’re more worried about how well our students can take tests. Because that will really help them in the future. Yeah, if you didn’t notice, I’m a bit cynical about the American education system.
I don’t know, maybe it’s wishful thinking, but I think that educating our future leaders on how to properly use money and credit would be advantageous against our country’s fight against debt and weak economies. It may not solve the issue, but it may prevent some of the strain we’ve felt over the past decade for future generations.
