The Undeniable, Harsh Truth

In the midst of our Nation's worst economic crisis since The Great Depression, there is rampant banter amongst the pundits, talking heads, and around the water cooler surrounding the perceived architects of this disaster. The Big Three automakers, mortgage lenders, Ponzi schemes, vast golden parachutes. . . . all of the apocalyptic harbingers and their doomsday machines. However, I know that many people know very well that while the popular focal points of this economic collapse certainly deserve their infamous spotlight, none of them would have been able to thrive without the dimwitted, greedy American consumer merrily tilling the soon to be fallow soil.

Allow me to admit that I am not an economist. I am not a political scientist. In fact, I've never been to college. So take my comments for what they're worth.

There once was a time where "want" and "need" were separate and distinct. Where, when you set your sights on an item, be it a house, new washer, car, etc, you took stock in your savings account. Now . . . we look at the pile of credit card statements to see which one has the most room left on it. Why? Well, by God, because you're entitled to that new car! Can't afford it? Well hell, lease it! You didn't have the foresight to save 20% for a down payment on a house, and simply can't be bothered to save that money? Any strip mall shark will be able to set you up with a killer sub-prime loan! Equity? Unnecessary.

The nineties ushered in an era of unprecedented overnight millionaires, surfing the wave of mind-numbing technological advances. The birth and freakish growth of the Internet created a mass of wealth and opportunity that injected every other industry with a seemingly endless supply of capital. Unfortunately, that prosperity exorcised the ghosts of The Depression and other such economic downturns, instilling the belief that this period of success was indestructible.

Like Pinocchio in the pool hall, we were completely immersed in self-gratification, consumption, and the delirium of a good time that would never end. Appropriate to this analogy is the systemic move towards what is essentially, slave labor. While we know that slavery has been replaced by a "fair wage" in this country, such is not the case across the globe.

Countries like China, Mexico, and India aren't exactly hotbeds of worker's rights. There are no unions, or civil liberties organizations that hold any modicum of sway to force a fair wage, benefits, or remotely humane working conditions upon the companies operating there. All of this translates into crazy profits for any American corporation willing (and which of them aren't?) to do business there.

Now, I do blame some of this on our own system of unions. I believe that while there was a time that workers' unions were not only beneficial, but vital, that time has long since passed. Unions have grown quite powerful, but have not cultivated the reserve and judgment to go with it, leading to U.S. companies being strong-armed and backed into corners. In order to defend their market share and profit margins, these corporations have successfully lobbied against tariffs and taxes that would have otherwise prevented them from shipping jobs and factories overseas. With this move, they no longer have to be concerned with unions, and now those unions get to figure out what to do without jobs to unionize.

When you have the option of paying a full time employee a fully realized cost of $162.00/hr (this includes salary, benefits, etc) for tech support that can be done remotely by a vendor in India for fully realized cost of around $40/hr, it's not hard to see why the tech sector suffers some of the worst unemployment rates. Apply that same example to the manufacturing industry, to include automotive . . . and it's no wonder we're in this quandry.

At the other end of this is consumer demand. Everyone wants to pay $2.00 for a pair of flip-flops from Wal-Mart, and $6 for a shovel from any of the big box home improvement stores. The thought of having to pay a reasonable price, for reasonable goods is a dead way of living. My grandfather was a stonemason who owned his own company. When he bought tools, or nearly anything, he bought the best quality that seemed reasonable for the price. His philosophy was simple: Pay a bit more now to buy this item once, or pay for a cheaper item over and over and over again. In the long run, paying a bit more not only saves money, but also secures our country's industry it turns out.

All of this turmoil has been brought about, in part, by the fact that the American consumer feels entitled to everything for super cheap without a wise regard for quality, a compassionate regard for the plight of others, or an intelligent regard for future financial planning. I fully realize that this is an oversimplification, and that America isn't the only country behaving in this manner.

Spending your money wisely doesn't just mean getting the best possible deal. It also means weighing the implications of where your money is going, and whether or not that money will continue to circulate in a fashion that is beneficial to your local and national economy.