Wednesday, February 11, 2009

Is a Recession a Bad Thing ?

I have what is probably a very unpopular opinion right now:

A serious 2+year recession would be great for the country !!!

Now I know this sounds crazy, however here is my rationale. Many citizens:
  • have forgotten the importance of saving for a rainy day.
  • believe they are "owed" their dream life. (home, cars, vacations, etc)
  • have forgotten that markets are supposed to go up and down.
  • have forgotten the importance of donating their money and time
  • have neglected to keep improving their health, education, skills, productivity, etc.
  • believe they are above hard manual labor, or think a good job is a right.
  • believe that double digit property appreciation is normal.
  • believe they should get something for nothing. (ie too many lawyers)

The Great Depression had a lasting impact on generations of Americans and it seems we have lost the message. Maybe some good lessons could be relearned:

  • no matter your income, you need to save for a rainy day
  • you need to live beneath your means
  • personal debt should be used for conservative home mortgages and educational expenses only (ie not to buy cars/toys)
  • work and learning is a privilege to be respected and pursued with energy
  • people should not rely on the government, except as a last resort

If we do not collectively re-learn these lessons, I think America will have a hard time maintaining a dominant world leader role in the future. As usual: "Pay me Now or Pay me Later"

A good and useful book/movie: The Ultimate Gift by Stovall

Applicable writings by Fred Zimmerman

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