Mr. Average and The Economy รข What they should have told him earlier
Filed Under : Uncategorized by PageMaster
Dec.21,2010Approved by:
Linda Maze, a Wedding photography Gainesville FL in Gainesville Florida
Even with tons of promises from politicians all over the world to improve the economy of their territories, the economic disaster is still thriving in our Global modern society. A lot has been said about the cause(s) of this economic downfall: the banks, George Walker Bush, and so on. I could enlarge in too much detail on the error of the people of this country to vote for a Texan American who destroyed every corporation he worked for in his life, but I’d rather not. The United States of America is more than aware today that its former Texan President obliterated the solvency of the greatest country on Earth: Billions and billions of American dollars vanished in a yawning chasm called “National Debt.” The outcome of all the blunders that have been made by all parties involved, has put Joe Six-pack in a tight spot. In many cases the regular laborer was forced to ask for financial help from his friends, family and/or boss (if he was lucky enough to still have a nine-to-five job), to cover for the increase in price of the daily necessities for his loved ones. Many a Joe Schmo (and let’s not forget the freelancer), however, was forced to turn to a consumer counseling credit service and ask for (public) assistance with his severe shortage of us dollars to spend. The ones that were hit hardest had to turn to debt relief consultants. Millions and millions of Americans are in financial trouble, still today.How can you stop those matters from happening to you and your loved ones? Although many of the economic “brains” might chuckle about this rather simple fact and state the problem is far more complicated, (they love that word) Joe Six-pack needs a uncomplicated fact to hold on to in this “Dark Age” (as he feels very uncertain about the future.) And that straightforward economics lesson reads like this: you can never get into financial trouble if your income exceeds your expenses. Needless to say that this “universal law” is violated easily when an economic depression hits the whole world because prices rise, wages get cut, etc. So to prevent getting into financial trouble also amounts to the fact you need to create a financial buffer you can fall back on in times of a slump. It still baffles me that the greatest economic minds of the United States do not seem to understand that for an economy to work, and to keep working in times of crisis, you need to teach people on how to handle their cash in the long-term. After all, avoiding a financial calamity from occuring is normally better then to cure one. You would expect that the Masters of Economics knew better than that. Or do they have a hidden agenda? Well, time will tell. But if Joe Six-pack wants to avoid turning to a consumer counseling credit service for debt relief or other services, he better abide by this law: income needs to exceed his expenses. And that is economics for dummies. It is really as simple as that.