Are Americans Thinking Their Way Into A Recession?

My husband and I had an argument the other day because someone on one of the forums he frequents said that we are not in a recession, we just think we are. I agreed with Mr Anonymous, hence the argument. So to clarify for my husband and anyone else who cares to listen in, here are my thoughts on the subject.

” If you think you can, or think you can’t, you’re right.”- Henry Ford

This one sentence describes exactly what is happening to this economy right now. The television tells us the economy is bad, the DOW is down (who is this Dow guy and what does he have to do with me anyway?), retailers are quaking in their boots in anticipation of a bad holiday season . So what can we do but hold on to the money we have for the “just in case scenario”?

  1. Just in case we join the ranks of the jobless
  2. Just in case we are unable to pay holiday bills
  3. Just in case gas prices go up again
  4. Just in case our 401K continues to decrease in value

And what does all this just in casing (yes I know that’s bad grammar but bear with me) lead to? Retailers don’t make any money so they don’t hire as many seasonal workers, they pay less than they did last year to the ones they do hire, and they will definitely let people go when January rolls around.

Did I mention that they probably don’t order anything from their manufacturers, who then don’t order from their suppliers, who have to cut costs probably via layoffs and so on, and so on until our deepest darkest fears become reality and we have to take a pay cut or join the ranks of the unemployed.

Bottom Line – Our thoughts and beliefs, decide our fate. If we think that we live in an abundant world then we do. If we focus on what we fear the most, then it will come to pass.

Go out and spend some money on toys and clothes and stocks and jewelry. It will boost the economy and cheer you and someone else immensely!

4 thoughts on “Are Americans Thinking Their Way Into A Recession?

  1. I’m sorry, but this pricked me in a way I just can’t ignore. I can’t agree that recessions are all in the mind. The problem in the U.S. is that everyone saved too little and spent too much based on the erroneous assumption that increasing house prices represents a lasting economic gain.

    As the U.S. has since learned, houses aren’t an investment because it is not a productive asset. What needs to happen now is for there to be a hard crash, yes, harder than what it has been so far, so that everyone’s secrets come out. Who’s solvent and who’s not? Who’s been spending beyond their means and who has been saving for a rainy day? Who’s income increase was due to funny money investments and who’s increase was due to genuine improvements in productivity?

    Only after the day of reckoning has come, and the truth has come out that every player in the economy will feel confident enough to start building up again. The economy will not regain steam until there’s a solid and known foundation for it to rebuild from.

  2. Thank you for the feedback. I have read your comment several times to make sure that I understand what you are saying.

    I finally decided that I disagree with most of what you said, there is this erroneous assumption that every American bought a house that they could not afford, spent beyond their means, and didn’t put anything away in savings, 401ks etc.

    From where I sit, I see people who worked hard to buy houses that they could afford and live a lifestyle they dreamed about, only to have it all taken away via downsizing, outsourcing etc.

    People who aren’t working and can’t find jobs are more likely to utilize the money they have saved for years just to live. What happens when the money is gone?

    OK I’m rambling because I am so sensitive when it comes to this issue. But my main point is that I’m talking about human beings down here on Main Street and I think you may be talking about the guys in the glass towers on wall street.

  3. Pingback: Who’s Going To Accept Responsibilty For The Recession? | Denise Lee Porter

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