If You Spend More Than You Earn, You're Headed for Trouble!
Sounds like just common sense, right? If you make a habit of spending more than you take in, eventually, you're going crash and burn. It's just not sustainable.
Not only has our government been consistently doing this for most of the past few decades, but our entire economy has been doing it. It's called a trade deficit, and it's grown by leaps and bounds over the past 30 years. As a national economy, we have been buying more goods and services from the rest of the world than we sell for a long time. Yeah, I know, it's a global economy now, I've got that. I also understand the pitfalls of overzealous protectionism as it pertains to trade policy.
But the fact of the matter is, it's not just AIG, Chrysler and GM that are going bankrupt, it's our whole damn economy. If this trade imbalance isn't turned around somehow, we will never be able to maintain our position as a strong, economic, political or military force in this world. As far as I'm concerned, this is the greatest threat to our nation in both the long and short term.
Everyone has a million reasons why they must buy those foreign produced goods, and many of them are very logical arguments on the surface. Hey, this is American, and you have every right to spend your money as your see fit....at least for now.
If you think that you're going to be immune to the fallout of a national economic system that has bankrupted itself through an unsustainable trade deficit, guess again. If you live here, you will be sucked down the drain too.
An article from 2005- before the current economic meltdown.
Stepping down from my soapbox now........
Not only has our government been consistently doing this for most of the past few decades, but our entire economy has been doing it. It's called a trade deficit, and it's grown by leaps and bounds over the past 30 years. As a national economy, we have been buying more goods and services from the rest of the world than we sell for a long time. Yeah, I know, it's a global economy now, I've got that. I also understand the pitfalls of overzealous protectionism as it pertains to trade policy.
But the fact of the matter is, it's not just AIG, Chrysler and GM that are going bankrupt, it's our whole damn economy. If this trade imbalance isn't turned around somehow, we will never be able to maintain our position as a strong, economic, political or military force in this world. As far as I'm concerned, this is the greatest threat to our nation in both the long and short term.
Everyone has a million reasons why they must buy those foreign produced goods, and many of them are very logical arguments on the surface. Hey, this is American, and you have every right to spend your money as your see fit....at least for now.
If you think that you're going to be immune to the fallout of a national economic system that has bankrupted itself through an unsustainable trade deficit, guess again. If you live here, you will be sucked down the drain too.
An article from 2005- before the current economic meltdown.
Stepping down from my soapbox now........
Jenny I couldn't agree more. DH and I operate on a cash only basis... meaning if we can't pay cash, we don't buy it. Period.
As far as America as a whole... I think it's probably already too late for us to maintain our position, I believe we are currently watching our great nation slide closer and closer to a 3rd world country... hopefully it won't get that bad, but I think we've already lost our role as a super power.
I agree wholeheartedly!
You are absolutely right! Sadly, we are in debt, but so far have been blessed that my hubby has a job still! People just don't understand how world economics work, and all we have to do is look at the history of countries like Argentina & even Europe to see our future, the only difference is, we don't have a rich "United States" wanting to buy the few goods we do still make, so we can't be lifted out of this as easily as say Europe! Americans are voting with their dollars, and unfortunately, our foolish politicians all voted for "free trade agreements" that have bankrupted our manufacturers & our states, besides the Federal Government. It isn't going to just "get back to normal", the downside is going to be our new "normal". I appreciate your insight!
Becky in NC