American Entitlement: The Debt Game

It struck me as odd last Monday night that every restaurant I passed by had packed parking lots. With the constant reminders from the media and our government about how bad the economy is, I wondered how anyone could afford to go out to eat. If I only listened to the experts, I would think that every storefront in the country was closing down. Yet, as I drive around town, businesses are not only staying afloat, many of them are thriving. Granted, more businesses than usual have closed down in the last year, 10% of Americans are out of work, and many people have lost 50% or more of their life savings in the stock market. The statistical numbers and percentages that we are bombarded with are depressing, but we are missing the other side of the coin.

90% of Americans are still working, many people still have enough savings to rebuild, and our economy is one of the strongest in the world. Most importantly, as Americans, we have the resolve, the know how, and the resources to move on. But we all sit shell-shocked and afraid to believe that we can have a bright future. Things are bad but it is not game over. Don’t discourage yourself with the media statistics. What really matters is what you do next.

Let’s start by facing the cold hard truth: many of us have lost our homes, lost our jobs, and have more debt than we can ever pay off. Many small businesses have gone under, taking millions of dollars in lost dreams to the grave. All because of the poor economy, right? We tell ourselves that all the failed businesses, the lost homes, and the maxed out credit cards are all out of our control. We believe that we are all at the helm of a ship stuck in a hurricane unable to do anything but pray we stay afloat. However, if we really want to be honest with ourselves, we chose to take out an enormous loan for a gigantic house. We chose to fill it with furniture paid for by credit cards. Then we chose to take out a second on the house to start a business in order pay for our lifestyle. For a couple of years, we were living the dream, and it was great! The problem was that we got to the dream backwards. We all thought we were smart enough to make it to the top fast and furious. We had it all planned out. But we forgot one thing: reality.

The truth of the matter is that money is not magic. If you build it, they may not come, and just because you have a good idea, does not mean you can be successful with it. In the end, we simply mortgaged our pride; we thought that we could stake it all on our ability to achieve greatness without jumping through the normal hoops. We told ourselves that we did not have to wait 20 years like our parents did to make our dreams come true. We believed that our credit and our hopes would be sufficient to pay our dues. In place of hard work, sacrifice, and sound decisions, we let luck be our guide.

We are not struggling because the economy failed us; we are struggling because we failed to follow the basics rules of economics: work, save, buy. We foolishly thought that we could buy, work, buy some more, then save whatever was left over. The economy is where it is today because we put it there, not the other way around. Economies are not some unpredictable storm. They are results of the direct actions of the people within the economies. Strong economic principles equal strong economies. This is true in the home and across the nation. Of course, the question still remains, will our economy survive? The good news is that we are in control; we are not lost at sea we simply need to start steering. If we can learn the simple principles of work, save, and then buy, eventually things will turn around. It will be hard and it could get harder, but it is time to own up to our mistakes, put on our boots and try the old tested ways of our parents and grandparents.

What now? if you are part of the 90% that currently have jobs, enjoy the rewards, but do so with restraint and remember your neighbor in need. Don’t lock yourself into protection mode, ignoring the needs of those around you. Use your resources to rebuild this country on sound principles. Make wise decisions and you will go on. For those of you in the 10%, wipe off the dirt from your fall and have hope. Hard work will never fail you in America where freedom reigns.