World as we know it going to hell

[wincrasher]

I was listening to a program on CNBC last night. They had a guy on there that was laid off from managing a lumber yard. He was giving up on that career (no jobs) and was going back to school to be a nurses assistant with the hopes of making 50% of his old salary.

The talking heads (all probably millionaires) were all lauding his efforts and wished everyone had "his attitude". By his attitude I guess they mean being happy to make alot less money - this is a business channel after all.

Now I'd be the first to applaud the guy for having the fortitude to start over and find something that works to support his family (if it will).

But I feel badly for him instead. I guess it's the future for alot of folks now.

[cschin4]

There are no guarantees in life. Our generation has been spoiled and we all just expect to have good jobs, good income, etc. In reality, none of us deserves anything or has any right to have anything but what we work for. The good life was here and for many people it is now over. Now, we can accept our lot and pull ourselves up or mourn for the past.

[Broken Arrow]

I would draw two conclusions about that.

First of all, as someone who isn't even close to hoping he is a millionaire, I do applaud him to do whatever it takes or even interests him to continue his income.

The second is that, as cschin4 mentions, there are no guarantees in life. And that's why it's so important to have your financial house in order and create robust safety nets.

And anyway, I'm not sure how the world as we know it is going to hell because of this?

[wincrasher]

Certainly there are no guarantees. Duh.

But we have always had opportunity. That's what may be drying up.

Experts say 15 million jobs have to be created to re-employ those without and for population increases every year. So far, no clear plan to make these jobs, nor much confidence that more won't be lost.

I'd say 99 percent of these people weren't living the 'high" life and are loosing out thru no fault of their own. Now we're saying they have to retrain themselves at their own expense for a bleaker future.

And how many of you could go without a comparable job to what you have now - 12 mos, 6mos, 3mos, 1 month?? Survey says most folks could go without a job for about a month before the wolf is at the door.

But the bigger issue is what kind of county will we be if there isn't the opportunity? People need something to look forward to.

[Broken Arrow]

But... we still have opportunities. I think national job loss is hitting double digits, but that's still... 85% or more of the population still employed.

Plus, several industries that tend to thrive in recessionary climates are still holding up. Discount retailers, technical trade schools, even certain commodities such as guns and gold.

Plus, the country has gone through much worse than this. Cold War, WWII, the Great Depression....

When you think about it, the economy isn't falling into oblivion so much as we were living on an over-inflated housing bubble that burst, and conspicuous consumption along with it.

As for something to look forward to, I look forward to a healthier, more sober America. People were too drunk and wild with credit, and now we're experiencing an economic hangover. But that's doesn't mean the end of the world is coming....

Besides, the Mayan calendar says we still have a little over 2 years left.

[EEinNJ]

I think there is real downward pressure on wages in this country. Especially in periods of high unemployment, employers try to get the workers they do hire at cheaper rates.
A friend of my wife's who works in the commercial furniture business got laid off last year from a high paying position. Now she is in the process of getting hired at a new job that will probably pay much less- and they are asking her to supply her w-2's for the last 2 years. The excuse is "to be able to structure a competitive compensation package", but essentially they are demanding she prove what she's worth, not offering what they think the job is worth.

[Joan.of.the.Arch]

Now she is in the process of getting hired at a new job that will probably pay much less- and they are asking her to supply her w-2's for the last 2 years. The excuse is "to be able to structure a competitive compensation package", but essentially they are demanding she prove what she's worth, not offering what they think the job is worth.

My gosh, I hope that is not going to be a trend. When people are desperate to get work, though, I can see that people might grudgingly go with it....What would be next---asking for your tax filings?

[disneysteve]

I don't see where a new employer has any legal right to see my tax forms from previous years. Making a "competitive compensation package" makes no sense anyway. Given the current economy, what difference does it make what I was earning 2 years ago if I'm now unemployed and looking for work?

[Broken Arrow]

I just want to add that as bad as this recession is, let's please put it in perspective and remember that it's still not as bad as the Great Depression where unemployment was as high as 30%, and a lot of people lived in shanty towns and lined up for soup.

Even then, the country still recovered from the Great Depression, where government safety nets at the time were far and few in between, and went on to enjoy decades of excess afterwards.

Either that or I am capable of driving a dune buggy and am fairly handy with a firearm so....

[wincrasher]

I think we will find this recesssion quite different. In the past we didn't have the great mountains of debt - both personal and corporate - that will be a huge drag for many years.

This is what will hold back opportunity. There won't be the credit extended to enthusiastic young entrepenuers that is the engine of job creation. So many people living near the edge can't afford the risk of doing something new.

I just find it all very depressing.

[Broken Arrow]

Well, I'm trying to cheer you up....

The credit crunch is tight. No doubt about that, and if it means anything, Bernanke is pretty bummed about that as well. The Fed would like nothing better than for credit to flow again.

But I do think the condition is temporary. It doesn't help anybody to have the credit market freeze up like this. Not the least of which, banks can't make money if they don't lend.

For now though, it does show that we are still in the midst of this recession and things are still rather delicate.

[elessar78]

I think we will find this recesssion quite different. In the past we didn't have the great mountains of debt - both personal and corporate - that will be a huge drag for many years.

This is what will hold back opportunity. There won't be the credit extended to enthusiastic young entrepenuers that is the engine of job creation. So many people living near the edge can't afford the risk of doing something new.

I just find it all very depressing.

I don't think you should be depressed at all. Yes, some people are having a rough go at it but the majority probably have not had a seismic shift in their cash flow. People are spending less, but that's psychological. I think of all my family and friends and maybe 1 or 2 have felt the pinch of the downturn, but it was nothing drastic.

I'm not saying I'm an accurate sampling of the American population but I think people are now where they should have been all along—being more conservative with their spending.

[Broken Arrow]

Yeah, this recession is actually turning out pretty well for me.

Well, it helps that I am still employed, and was on the frugal bandwagon before the recession even hit....

On top of that, the recession turned the consumer market into a buyer's paradise. I've gotten a lot of great deals on stuff during this time.

My net worth still increased throughout all this.

Of course, I am not walking around thinking that I am untouchable. All around me, there are cutbacks and job losses everywhere, and I know it can happen to me as well. But to me, it only emphasizes the importance of financial responsibility in the first place.

All-in-all, I can't complain. It could be a lot worse....

[disneysteve]

Yeah, this recession is actually turning out pretty well for me.

Well, it helps that I am still employed, and was on the frugal bandwagon before the recession even hit....

On top of that, the recession turned the consumer market into a buyer's paradise. I've gotten a lot of great deals on stuff during this time.

My net worth still increased throughout all this.

Of course, I am not walking around thinking that I am untouchable. All around me, there are cutbacks and job losses everywhere. But to me, it only emphasizes the importance of financial responsibility in the first place.

All-in-all, I can't complain. It could be a lot worse....

As the old saying goes, a recession is when other people lose their jobs. A depression is when you lose your job.

[Broken Arrow]

Hehe yeah, that's true.