Economic Pessimism: Objectively Critical Or Dr. Doom?
If you read this blog, you know I’m pretty negative on the economy overall. I think there are structural issues that are going unaddressed and are not easily fixed as a result of decades of various economic policies. The result is a coming adjustment in the average standard of living for Americans in my opinion.
When I talked to people, I’m often categorized as just overly negative, or someone who thinks the world is coming to an end. I’d like to clarify this a bit…
First, I’m not negative for the sake of being negative. I would prefer a great, booming, growing economy. Why? Because, well, I’d probably make more money in an easier fashion. It’s hard to make money. I work hard in my job to help my company bring in business and make money. It’s not automatic, it requires effort. A booming economy might translate to bringing in more business easier. So, I’m not negative for the sake of being negative.
I’m not an expert, but I have an intense interest in economics and the markets (for some strange reason) and I listen to and read every viewpoint and opinion under the sun. My viewpoint is formulated upon the myriad of information that I process and decide that one argument is more credible than the other.
Now, my economic views are well documented. I think it’s near the end-game of our little Keynesian experiment of printing money, borrowing money, to prop up an over-consumption-based economy that produces very little. Do I think that this is the end of the world and we should dig bunkers into the side of a mountain and go live there? No.
Why do people who are bearish on the economy get labeled as crazy and doom-and-gloomers? I’m neither.
The reality is that life will likely go on just fine for most people. It’ll just be different than it is today. There will be pain of course. There’s pain whenever any sort of economic contraction occurs and people will throw a hissy fit (see Wisconsin protests) when anything is taken from them whether it is warranted or not.
My hope is that people think objectively, form their own opinion on the economy, and then prepare for that outcome. That might mean just spending a little less money and pooling some cash in case things don’t turn out as rosy as we’d like. Not doom-and-gloom, not even that big of a deal, just smart and practical and objective.