Despite a lot of promises from politicians all over the world to better the economic situation of their nations, the economic crisis is still thriving in our Global society. A lot has been said about the cause(s) of this economic downfall: the banks, George Walker Bush, and so on. I could dwell on the almost unforgivable mistake of the American people to vote for a Texan American who destroyed every corporation he worked for in his life, but I’d rather not. The United States is more than aware today that its former Texan President crushed the solvency of the greatest country on Earth: Billions and billions of American dollars vanished in a bottomless pit called “Financial Pitfall.”
The result of all the errors that were made by all people involved, has put Joe Schmo in a tight spot. In many instances the average worker was forced to ask for financial help from his pals, family and/or employer (if he was fortunate enough to still have a nine-to-five job), to cover for the increase in price of the daily necessities for his loved ones. Many a Joe Blow (and let’s not forget the small business owner), self-emploted), freelancer), however, was forced to turn to a consumer counseling credit service and ask for assistance with his acute shortage of dollars to spend. The ones that were hit hardest had to turn to debt relief counselors. Millions and millions of Americans are having a hard time, still today.
How can you prevent those things from happening to you and your family? Although many of the economic “geniuses” might chortle about this simple datum and state the problem is far more complicated, (they almost worship that term) Joe Schmo needs a simple fact to hold on to in this “Dark Age” (as he feels very uncertain about the future. And that straightforward economics lesson reads like this: you can never get into financial trouble if your income exceeds your expenses. Needless to say that this “universal law” is violated easily when an economic slump hits on a global scale because prices rise, wages get cut, etc. So to prevent getting into financial problems also includes you need to create financial reserves you can fall back on in times of an economic slump. It still amazes me that the greatest economic brains of the United States do not seem to grasp, that for an economy to work, and to keep working in times of emergency, you need to educate a people on how to handle their money in the long-term. After all, preventing a financial calamity from happening is always better then to cure one. You would expect that the Masters of Economics knew better than that. Or do they have a hidden agenda? Well, time will tell. But if Mr. Average wants to avoid turning to a consumer counseling credit service for debt relief or other services, he better abide by this law: income needs to exceed his expenses. And that is economics for dummies. It is as simple as that, really.
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