The more I think about this, the more I have reservations.
The current thinking in Washington seems to be that we need to stimulate individuals, businesses and governments to spend more, thus breaking the recession.
My conclusion is that more spending is not the solution - rather, it's the problem. Due to two decades of cheap money we have spent too much. The result is that many of us live in homes we can't afford, drive cars we can't afford and in general have created lifestyles (including raising children) that we can't afford. By "afford" I mean that we are able to do what we are doing, while at the same time doing all the other things we need to do - without resorting to debt somewhere.
Today, we (individuals, businesses and governments) are so loaded down with debt and debt payments that everything is grinding to a halt (recession at best.) If that's correct, more spending stimulus is not the solution. I view debt as the problem, and the elimination of that debt is the solution.
Meanwhile, it is what it is. And for those of us interested in personal finance, the objective is to survive. My thinking is that we must live within our means, save regularly, avoid debt and make economic choices accordingly.
I don't know of any solution other than to go through a painful process. And the degree to which each of us suffers varies with the degree to which we live within our means, blah, blah, blah.
My conclusion is that we as a country will improve as we as individuals emerge from this process.
Thoughts?
-HW "Skip" Weldon Columbia, SC