Back to Normal

We’ve been hearing a lot that we’re in recession, and that the proverbial shit has been hitting the fan. However, a while back my Macro-Economics professor, Claudia Williamson,made the interesting suggestion that rather than receding or being in a depression, the economy is in turn, “going back to normal”.

To elaborate, that the economy was over heating, we were simply growing too fast for our own good. If you haven’t seen the slideshow “Shift Happens” check it out. I would have to agree with her and say that yes, the world was growing and way too fast. We needed to cool down for a bit or we would screw ourselves over. Producers produced much quicker than we could buy. We kept using credit to buy more than we could to keep up with them.

They should have turned the tides and producers kept up with demand rather than blowing up and worsening the credit crisis.

Credit is America’s Downfall

We believed that we could have purchased whatever we wanted without a worry. Now, we have credit debts we can’t pay (Even I am to blame for that) and it’s biting us in the ass with extreme rates.

So what needs to happen… Reduce loan rates, and increase return rates. Simple but deadly and damn near impossible to accomplish right now. We don’t need to spend to increase the economy, but with rates sky high we cannot spend on small wants to get small and corporate business back into action. It all boils down to watch what we spend and spend wisely with limited credit. Doable yes, but cautiously on parts of individuals and corporations.
Stop sending the small jobs that can be done here in America to increase the income of our own country to increase our spending. Then the key is do have supply follow demand, not have supply dictate our demand.

What do you think of this, leave your comments.
Image by Andres Rueda