Local Observations About This Recession

I'm seeing probably my 3rd or 4th severe recession. As I look back over the previous economic problems versus today's, I can't help but notice some strong differences amongst the general population that I haven't seen before.

Now, I don't know if that is because I live in an area that I have not previously experienced recession before, or if what I'm seeing is reflective of a national attitude. Let's get started...

First, as I look around I am seeing far more unnecessary debt. By that I mean that there are more people who are buying 'toys' simply for the sake of having them--not because these things are needed; but because they are simply wanted...desired (for lack of a better word). 'Toys' can range from seldom used snowmobiles to one car for every person in a household; from always having the newest, coolest video game console to being obsessed with owning the latest in telecommunications technologies (phones, blackberry's, etc); from flashy but useless automobile gadgets to showing friends your monstrous new 100" HDTV. It's as if we aren't satisfied with what we've got...we simply want to have more stuff than our neighbors.

Next, during the previous downturns, the number of cars on the roads dropped dramatically as commuters would carpool, and weekly household errands were done in one trip. Since the crash last Fall, I have not seen a decrease of traffic on my local roads. There seems to be no increase of carpooling or even public education about carpools; no increase in mass transit options or availability.

How about dining out? In my experience, during recession, the foot traffic at grocery stores increases dramatically, while restaurants see a significant drop-off in weekly sales. With the current recession, the restaurants around where I live are just as busy as every; while the grocery stores aren't any busier than a year ago--a real paradox when you stop to consider that people historically are extremely proactive about saving every penney when things get tough.

In decades past, it was rare to see someone actually pay for anything with a credit card. I'm not talking about a debit/cc, but a real CREDIT card. Today, the average american household has about $5500 in credit card debt; that is, the amount of monies owed to a credit lender (plus fees, interest, etc).There are far more people living on money they don't have than I have ever seen before. Pretty scary when you stop to think that literally everything you own could be taken away from you because you defaulted on your credit payments.

Lastly, I recently read an article which stated that the average american is only saving a fraction of their income compared to even ten years ago. We are spending nearly everything we are earning! The post-baby boomer generation has no way to pay for retirement. Why? Because they are spending at an unprecedented rate, driving up inflationary numbers far higher than they should be, and causing economic upheaval on a scale never before seen.

Yes, there are a great number of varying factors which formulate the economic impact we are feeling today; and what has been described here is but a cog in a HUGE wheel; but, these thing are indeed new to this recession. They have contributed, and they will continue to contribute to a fading economy so long as we (the spending public) continue on our reckless course towards financial devastation.

It's time we asked ourselves what we are doing every day that is adding to the economic woes besetting our country; and by so asking, knowing what we must do and then enacting those things which will strengthen our individual viability. Only then can we begin to add our small part to the huge economic wheel which we are all a part of; and the upkeep of which we are all responsible for.