| Easy credit--no one thinks, they just go in to debt Easy credit isn't a panacea--it's actually a curse. Too many people have become dependent on juggling multiple credit cards to satisfy impulse buying; most often buying things they can't afford. This goes for services too, like cellular phones. I know far too many people, especially young people, who haven't had any real training in basic economics or personal finance, who run up large monthly cellular bills on contract phones (some just don't like the stigma of prepaid, which is a better option for many on tight budgets). Some of them then use a credit card to pay those bills and begin building up huge amounts of debt.
This country really needs to begin teaching economics and personal finance to kids at an early age. They need to understand the huge cost of using credit cards.
I've said it before, the fact that 70 percent of our GDP is consumer spending presents a huge national security issue. It shows how little manufacturing capability we have remaining in this country. It also shows how much foreign investors are propping up our financial institutions. How much long that will continue, given the sliding value of the dollar, who knows. As a country, we're going to be hard pressed to remain a super power in ten years time if our current trends continue. |
| You're exactly right, and that's why it will never happen if the government has any say in teaching it. Our economy is dysfunctional in that it requires continuous growth to survive. Companies aren't satisfied with profits that remain constant quarter after quarter. They demand growth, Growth, GROWTH. Anything less is considered failure. This means that consumers (don't you love that term???) are expected to spend, Spend, SPEND. That's why credit is so easy to get and so hard to pay off.
And remember those so-called stimulus checks? Did the government ask us to use those to pay down debts or to add to savings? No, they asked us to spend them. It didn't matter on what, just spend them. Fortunately, many people had their own ideas on how to use that money, which is why it didn't get spent on frivolous purchases, by and large. People used it to try to make a dent in their debt. But you see the problem here. Good fiscal responsibility dictates that you pay off your debts before you spend more money. Did the government advocate that? No, we were told to spend, even if that wasn't the wise thing to do.
So, to get back to your post, if kids are going to learn to manage money, they shouldn't look to the government to teach them. And our habits are going to have to change. Some might say that, if we stop spending like crazy, the economy will crash. I say that this outcome is probably inevitable, and the best we can hope for is to soften the blow by being fiscally responsible. Tough times are coming, so get your financial house in order.
And just to keep this post on-topic, yes, text charges are outrageous, but it's because people are willing to pay them. If people tell the cell companies they aren't going to use that service, then prices will come down. Don't text and tell your teenage kids that they aren't going to be texting anymore either because it's too expensive. No one's life will end because they stop texting. They may whine about it, but, if they want a phone to text, they can get a job to pay for it. That will be their first lesson in economics that they so badly need. |
