Wednesday, February 18, 2009

Circle of Economies

We all know that there are cycles and circles when it comes to economics. There are good times and bad times and everything in between.

Right now, we are obviously in one of the bad times. This particular economic downturn has been made somewhat worse by ineptitudes of government. And out plan is for the government to bail us out?

While the $700+ billion dollar plan might only stimulate about $200 million dollars worth of economy, we do need something to jump start the economy.

Theoretically, if every company started hiring people again, our economy would work itself out pretty quickly.

Unfortunately, even companies that are not losing money are so fearful of a potential loss, that they are trimming budgets. When they cut jobs, those newly unemployed people start cutting back, and then the companies they aren't buying from cut even more jobs.

We need to all work as hard as we can to be productive members of society. We need to find some way to earn money, even if unemployed. We also need to spend wisely. If you are comfortable financially, now is the perfect time to take advantage of the sales, buy a new car, new furniture, go out to eat and stay in a fancy hotel. Don't hole yourself up in your home and hoard your money, help stimulate the economy!

I just got back from a trip to Reno, Nevada. We had a ton of fun skiing, gambling, and sightseeing. It was not terribly expensive, and hopefully I helped to stimulate the struggling economy in that part of our country.

Let's work together to stop the fear and start the recovery. With or without the economic "stimulus" plan.
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