Why Does History Repeat Itself ?

fdr

 

Discover Challenge
Tough-questions

Getting stumped is sometimes an invitation to rethink what we know.

Why Does History Repeat Itself ?

Why don’t Americans save some of their money? The Federal Reserve sets interest rates between banks and for what banks charge for their services. Also what they pay savings account customers. The Federal Reserve has spent over 20 years trying to keep interest rates near zero. Good for economic growth but very bad for the small investor, it is actually like putting a tax on lower income people. The little guy gets next to nothing from his money sitting in the bank. So why save? That question no doubt has been taken very seriously by many of the people in United States.

People happily keep buying everything, mostly on credit, to keep the economy moving, this makes the economists very happy indeed. There has been a study made that shows 47% of American households don’t save any money. This will bring about sad, bad consequences in case of an economic slow down, lost jobs or many other reasons. It could leave millions with nothing to live on, or for retirement. Will welfare help them all?

The big banks, the credit card businesses, the Federal Reserve and many economists have designed this economy of ours to operate just like it’s been going for over 20 years. Live for today, don’t worry about tomorrow. The American people, on their own, are starting to wake up to the fact that tomorrow is going to come after all! Why be in debt? They’re gonna quit spending money like drunken sailors. People will stay home, keep their wallets closed and quit buying everything in sight. The economy will come to a screeching halt, quite rapidly. There will have to be a lot of new jobs developed as well as bringing jobs back from overseas.

The toughest question, when will it all hit the fan? Will this all start to happen while the Tea Party Politicians are starting dozens of new severe, austerity programs? They feel a mandate to cut government spending on people, then environment, pollution etc..

In the recent past, our forward economic progress has been phony, mostly on credit. The loss of that forward progress will be real, and painful. A new factory could start turning out bootstraps 24/7. Everybody in the country is going to have to start pulling themselves up by their bootstraps so we better make sure we have plenty on hand.

https://lghoelson.wordpress.com/

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3 thoughts on “Why Does History Repeat Itself ?

  1. Thought provoking post (I enjoy the Discovery challenges also 🙂 To think about some of the post’s questions…

    So why save?
    I know! And where should we save? Solid coins in spare shoes under our beds? Abstract numerals on a computer screen (continuing to rely upon a banking system susceptible to bankruptcy like any business)?

    Will welfare help them all?
    Last time I checked $1 of ‘welfare money’ was of the same value as $1 of ‘hard-earned money’. People claiming welfare put money into our economies (often upon food, rent and utility bills all within a few days of claiming welfare).

    Why be in debt?
    Perhaps because I live in a western culture and our main motto seems to be Consume or Produce.

    When will it all hit the fan?
    Don’t know. I agree – it will be real and painful. I am trying to prepare by consuming less and producing more of my own ’stuff’ (food in my garden, clothes, presents for christmas, etc).

    Like

    • Thank you for visiting my blog. Life goes on no matter what. I grew up on a farm, scratching poop with the chickens, that’s an education worth a lot of money, it taught me how to get by during lean times. I hate to think of tough times and I imagine there will be more in the future, how it will effect many of the young people is hard to tell. They may all do just great. Trials and tribulations have always helped build character and perseverance.

      Liked by 1 person

      • Thank you for visiting my blog. Life goes on no matter what. I grew up on a farm, scratching poop with the chickens, that’s an education worth a lot of money, it taught me how to get by during lean times. I hate to think of tough times and I imagine there would be more in the future, how it will effect many of the young people is hard to tell. They may all do just great. Trials and tribulations have always helped build character and perseverance.

        Like

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