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We're in a contracting economy

Unemployment ALWAYS rises during a contracting economy. When people aren't building houses, construction workers are out of work. When people aren't buying cars, salesmen are getting pink slips. When people aren't going out to eat, restaurants close; cooks and waitresses lose their jobs. People need to remember two things about the current economy, however. The first is that a contracting economy accelerates its downturn because of the self-fulfilling effects of sitting on your money. The psychology of a recession is difficult for most people to deal with. You want to sit on your cash because of an unpredictable future, but sitting on your cash is the worst thing you can do for us to get out of recession. The second thing to remember is that a certain large percentage (I'd guess 20-25%) of our current woes are pure hype. Yes, we are in a bad time financially. We have several problems to address, some of them huge, such as our national debt. However, we have also just concluded a year of the media and a major political party beating the drum non-stop about our economy verging on total collapse. It was in the best interest of both Obama and those entities supporting his rise to power to paint a picture of devastating doom and gloom. It's bad, but not as bad as you have been led to believe. So there's good news and bad news on the horizon. The good news is that like every other economic downturn in the history of the world, this global recession will end. The bad news is that while governmental action is required, history has shown that the efforts will be stumbling and faltering, with both good and bad policies being adopted. Right now the LAST thing we need is another trillion dollars in debt on top of the trillion we just borrowed, but that's what seems to be in the plans. There are about a million lessons to be learned from our current economic woes, but I fear the most important lesson will be ignored. Forget Wall Street, forget the housing bubble, forget light manufacturing's migration overseas; forget blaming anyone. There is but one lesson for YOU to learn, and that is Aesop's fable of the grasshopper and the ant. If you're hurting now, scared now, or starting to worry now, when the economy starts to pick up again, what are YOU going to do to prepare for the next downturn which WILL eventually come? Yep! The Grasshopper and the Ant. It should be required reading in every grade of school from Kindergarten through doctorate. Maybe then it will sink in.

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