Aug 17th, 2011 | By | Category: Senior Moments Blog

Economic Realities

Those who dabble in the study and analysis of economics suggest that spending is the best way out of our current economic dilemma are probably right.  History and economics has demonstrated that holding back usually creates a self fulfilling prophecy.  The less we spend, as a nation, the slower our growth.  The classic example of getting out of the crisis of the 1930’s was by spending our way out.  A major war stimulated the economy in a major way, of course.  That doesn’t seem to be working this time.

So when seniors begin cutting back, as do others, on spending and  delaying purchases, the economy spirals down.  While some in the upper atmosphere who enjoy limitless wealth continue their spending, it doesn’t seem to contribute to improvement in the overall shape of things.  Trickle down needs to be more of a flood.  With unemployment at 9.1% (and likely above that number) no sprinkling of nickels and dimes is going to do the trick.  Rockefeller tried that in the depression.  He handed out dimes to children on New York streets.  His foundation and businesses were the source of greater largesse.

Manage Resources Carefully

Spending is not necessarily something we need to be rushing out to do.  Neither is putting money under the mattress.  Prudence is not a bad practice.  Careful managing of available resources in unpredictable times is a wise strategy.

Fear, however, recalling again one of the dictums out of the ’30’s, is the only thing to be feared. So managing intangible resources may be as important as managing money well.  Panic, unrequited distrust, turning on one another, these are the places where we need to exercise our disciplines.  These are the  circumstances where we can  be frugal.  Do not fall into the trap of blaming those who have little for the conditions they are experiencing.

Show compassion, withhold animosity and judgment.  Expend little on a mean spirit.  Be kind to one another.  Spread goodness and love. Practice a random act of kindness every day.  These are the available intangible resources that seniors have and once expended, will produce positive results.  And the greatest thing of all is that they can be replenished in abundant supply each and every day, without spending a penny.

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  1. […] so says a familiar quote. However, going where is the paramount question.  What is the best and most helpful strategy for persons, like retirees, who generally live on fixed incomes, whose resources can be drained and whose security can be […]

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