lhowell

African-Americans Can’t Save the Country from Recession

In conservation, economy, mindset 3.0, political analysis on January 21, 2008 at 2:38 am

The recession that continues to be discussed is real and there’s nothing the Stimulus Package can do about it. It’s really quite simple: consumers are tapped out. There is not enough money to pay all the bills. Just look at the proliferation of pay day advance stores that litter inner-city and even suburban areas. The fact is, consumers don’t need more stuff.

Now, after taking a peek at the video, the actor talks about “planned obsolescence”. This means that the stuff we buy has a finite life span. So, if you use credit to buy something that costs $250 bucks against your $1,000 credit card limit, and the item lasts 3 months before it breaks, you have to buy another one. So, you buy another one and now you have $500 remaining on your credit card. So, now let’s assume, you need new tires, which costs you $400; now you have $100 on your credit limit.

For African-Americans it is now time to revisit those trips to the mall, and perhaps consider doing one’s hair at home rather than spending 4-5 hours on the weekend to look pretty. So, the leading democratic candidates Obama and Clinton will be forced to get real creative if they want to create lasting economic change to change things. This next clip highlights why the democratic candidates need to seriously rethink their approach to getting the economy back on track.

After viewing these clips, I realized that going out to shop, is NOT the answer. Despite what the pundits say, and George Bush’s attempt to “stimulate” the economy, buying more stuff that we actually don’t need is simply not the answer. So, what is the answer?

Well, the first approach is to increase wages. Real wages have not kept pace with inflation and thus it is difficult to continue the torrid pace businesses have come to expect. The second piece of advice is to invest in spending quality time with your family. This might seem odd to some, but by spending quality time reading, sharing, walking and dancing at home, gets people away from the deluge of marketing messages that they get from watching television incessantly. Third, families have to get real about their finances and cut back on unnecessary driving, multiple cell phones and other financial leaks.

Recession means, marketers have done their job. But guess what, the bill is due and no amount of stimulus will help the U.S. economy. When real wages increase, savings increase, education becomes a priority, an economic stimulus package will provide “perceived” relief but in reality, this stimulus package, will simply be, well, much ado about nothing.

Happy New Year!

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  1. Our country was also hit hard by the Economic Recession. At least we are seeing some signs of economic recovery now. I hope that we could recover soon from this recession.
    l..*……..-=

  2. Our country had been so much affected by this Economic Recession. there are lots of job cuts and company shutdowns. We are seeing some signs of economic recovery right now and we hope that it would continue.
    *****

  3. I think we are also seeing some signs of recovery from the Economic Recession. Of course, we have no idea of how long it will take to completely recover, but some say it’s going to be longer than for the other recessions in decades. I also scanned an article yesterday that said business owners need a new set of tactics to do well during recovery.

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