A Different Tone Would Do You A Disservice; You Must Swim Upstream
Some people I talk to sometimes ask why I’m so down about the economy and why can’t I be more optimistic? This is really a silly and stupid question/comment, but it’s still something that I have a legitimate answer to. My answer is three fold:
1. I’m being honest
The reality is that I’m expressing my honest opinion of the economic environment. I believe there are major issues with our economy and the consequences of it will affect all of us. Some of us who see the economy for what it is will be better prepared and more equipped to deal with it in my opinion, which is why I write this blog. I’m hoping to encourage people to wake up and look into this on their own and then take steps to prepare and improve their financial situation.
2. If things are going to be perfect moving forward, you won’t really need to do anything except “show up”
Secondly, if everything is going to be perfect, there’s really nothing to talk about. If the economy is going to be growing exponentially continuously into the future, then there’s nothing to worry about. Even if you lose your job, there’ll be another one waiting for you! Your income should continue to increase and your investments should dominate. You should be watching football.
Do you see what I mean? Good things happen simply by participating if the economy is great and going to stay great. Unfortunately, I don’t see it that way. There are issues that exist, and there is something important to discuss.
3. Optimistic financial blogs are all about common sense strategies that you already know
As I just said, participation is essentially all that is needed in a great economy and ideal world. If there is room for anything else, it’s only common sense stuff like diversify and spend less than you earn. There’s really nothing more needed. Alternative investments and working your tail off for alternative income streams is just a waste of time and too much stress.
The reality is that because most people are blind to the economic realities, this common sense material is essentially all you’ll read at most financial blogs. These blogs will tell you about five basic principles of personal finance in about 300 different ways.
A different tone would do you a disservice
The reality is that I want to sound a warning about the economy we all live and work in, but also offer constructive advice and solutions to help “out run” this economic deterioration that should continue. While I’m incredibly pessimistic on the economy, I’m incredibly optimistic on the ability to still do very well during it.
This is the positive tone that I offer: the fact that you can still do very, very well, even if things are very, very bad. What this means however is that unless you’re proactive about your financial situation, then you will likely not do well. The masses will struggle and be hurt significantly during this time.
The latest jobs numbers were another indication of this. There was another record in discouraged workers. More and more workers have simply stopped looking for work. There are so many ways you can look at this.
First, could you imagine stopping looking for work? What the heck are these people doing? Watching soap operas? Go work at the grocery store until you find a job you idiot! That is what I would do. Frankly, I’m disgusted that people “stop” looking for work and are content collecting unemployment.
Second, this statistic offers a glimpse into the continued economic reality of this country – even despite the fact that our experts tell us that the recession officially ended years ago.
Look, 2011 isn’t going to get better. Even if things “feel” better for a while, it’s a mirage. Even if the stock market goes up 20%, it’s irrelevant. The economy cannot be fixed based on current policies. Government spending, printing dollars, and inflation does not equate to positive economic growth. The “wealth effect” policies of this government to where government thinks people will feel wealthy because the stock market is higher and then spend money is only making people broker.
So, your goal is to swim upstream in 2011.
First, don’t buy into this recovery and go buy a bunch of new toys. Save your money and get ready to invest it. Rather than spending your nights watching crappy television, you need to start working on another income stream. You must out-run this depression. Again, upstream.
While you’re swimming upstream, many will simply fall into the downstream current by halting their search for employment and looking to a politician and an unemployment check for a solution. There is no salvation down this path.