We All Play a Role in the Economic Recession
Whether We Realize it or Not
Each and every one of us is affected by it.
We all help facilitate it.
We all suffer because of it.
We all want to climb out of it.
Whether we understand it, admit it, or take responsibility for it; the current state of our economy - The Recession - is a product of everyone's actions and reactions to today's national dilemma.
You could say we are all to blame, however blame is only appropriate for those actions (or lack of actions) which are consciously taken to harm others and/or profit themselves.
Instead of blame, let's look at what seems to be a downward spiral as rather, a natural result of instability.
Instability? Yes, the equilibrium of our economy shifted when events such as the mortgage lending crisis and the automotive bankruptcies began to rear their ugly heads.
This didn't happen all at once; of course not. The storm was brewing long before the nation realized the effects of it.
The sad thing is, we all now have a role in it.
How? What may have originated as greed by corporate owners, CEO's, and other forms of executive management was perpetuated and returned by those who wanted their share of the profit and/or trusted their sources.
Let's take the automotive sector. As a lifelong resident of Michigan, I grew up in the suburbs of Detroit; aka The Motor City. It was no surprise that once I entered the workforce, it was automotive related jobs at The Big 3 that were highly sought after and provided those employees with lavish benefits, bonuses, and incredulous, unwarranted wages.
It sounds like a dream come true, right? At the onset, perhaps. The Big 3 executives reeled employees in with the promises of an abundant financial (and stable) future. They were the "bread and butter" of Michigan....as well as America.
The hedonism of the good ole days at The Big 3, however, finally caught up with reality. Money doesn't grow on trees and there is no endless amount of dollar bills filtering in and out of these companies. There is a cost of quality and a purpose for set wage scales. Higher pay does not always equate with higher profit. Likewise, cheaper labor does not promise equivalent product.
The result; downsizing, cost-cutting, benefit reductions, pay cuts, and worse yet....mass layoffs and the threat of bankruptcy.
No longer were the days where executives and employees lived high on the hog. Those days led to self-perpetuated depletion and devastation. We are all paying the price for it.
These mistakes do not only affect those employed by or running these corporations.
Displaced workers no longer can afford what they want; they are forced to focus only on what they need. It's now of matter of "getting by". Translation, less or no dining at restaurants, going to the theater, or shopping at the malls or shopping via the Internet.
In turn, this means a sharp decline in business for these restaurants, theaters, retail and Internet corporations. Decreased profits, or even breaking even, leads to downsizing, cost-cutting, and layoffs for these business sectors.
People begin to hang onto their money, fear investing or spending their precious dollars on anything that isn't absolutely necessary. The media incessantly bombards the nation with bad news upon bad news; instilling fear and apprehension in everyone; not just those living in Detroit or in Michigan.
Everyone clutching their money affects all businesses, all employees, and all families.
It's now a fight to stay in business. It's a fight to hang onto a job or obtain one. It's a fight to put food on the table. It's a fight to afford adequate health care. It's a fight to stay alive!
The solution? The corporations and individuals that took advantage, lived on hypothetical profits, and overspent have now received a wake-up call (we hope). Realistic goals, genuine profits, and responsible spending and investing is what will stabilize our economy and pull us out of recession.
We all need to work together.