Friday, August 01, 2008

Economic Observations from Someone Who Has Never Taken an Economics Class

I'd like to take out a smallish loan to finish all the small-to-medium nuisance projects around the house. I can afford to pay it back since, probably unlike most, I don't have a mortgage (nanny nanny boo boo!). But I fear losing my job, even though that fear is probably pretty irrational. Or maybe not.

Since I'm not taking out the loan, I'm not buying the materials or hiring the craftsmen.

Since I'm not buying the materials or hiring the craftsmen, HD and Lowe's aren't getting my money, and the craftsmen aren't getting hired to do my projects. Therefore, they don't get my money.

Since no one's getting my money, the economy is that much worse because the sales at HD & Lowes are down, and they have to lay off someone. And the craftsmen can't make their truck payments, so their trucks get repo'd and now they can't work.

And because the HD employees and the craftsmen can't run around and spend money, thereby paying taxes into the state coffers, funding at My School is cut even more drastically and enrollment dips even more.

And then maybe I don't have a job any more.

Clearly the only way to save my job is to take out a loan.

(And I say this in only partial jest...)


kkryno said...

You know it IS as simple as that. Everyone is afraid to spend money even if they can out of fear that this "correction" the nation is experiencing may turn into a full-fledged recession. Somehow, I think this administration will spin it for all their worth (which isn't much, IMO) until the election. The people who are barely scraping by are holding on by their fingernails. My situation less than ten years ago in today's economy would have landed me in the homeless sector. I'm so grateful for our standing now. We are not rollin' it, but we are somewhat secure. Whew!

Bitty said...

What you describe for yourself is pretty much exactly my situation. Things used to be so tough for me less than 10 years ago that I almost lost my (now paid-for) house to foreclosure. My payments weren't even that high, but my income was minuscule. Now that I'm more stable, the economy isn't, and I'm scared to stick my neck out too far. I don't want to be in a place where I couldn't get by on a very small income. Buying little things? Sure. But the big things are defintely on hold.

It also would help if we had some genuine leadership instead of spin and platitudes.

SavingDiva said...

Since I don't have any money, I don't think I can take out a loan ;)

Bee said...

I always wonder what part of an "economic downturn" can be attributed to the fear and anxiety caused by dwelling on said downturn. In other words, the "lost of confidence" factor. Maybe you should go ahead and take out the loan.

Having just returned from the U.S., I certainly did my part to prop up the flagging economy. Did you realize that NH doesn't have sales tax?