Sunday, July 31, 2011

A New Economic Reality

The Great Repression has created a new economic reality that may be tough to accept.  To me, many people are still in denial.  However, I think it's better to accept reality and move on. Here are some tough but likely current realities:

  • Many jobs lost during the great recession are gone forever.  Companies have figured out how to operate with fewer workers and they're not returning to past employment numbers.  Corporate profits are up and there are no plans to rehire for the lost jobs. 

  • Those with jobs are working longer and harder ... for the same pay.  The work doesn't go away, just the people.   It's called a productivity improvement :-)

  • The U.S. consumer is less important.   The U.S. used to be a consumer driven economy, making low unemployment an important goal.  However, the economy has recovered despite high employment.   Companies are making record profits.   It doesn't seem like anyone needs the U.S. consumer any more.

  • Social Security as we know it is gone.  The world's biggest Ponzi scheme will soon have to reinvent itself to survive.  For all those that think Social Security are a paid for benefit, think again.   Social security withholding is a tax and not a premium which means that nobody is guaranteed a payment.   Government pensions are probably not far behind for being restructured.

  • It appears the old days are gone and not returning  It's best to start preparing for the new future.

    For more on  New Beginnings, check back every Sunday for a new segment.

    This is not financial advice. Please consult a professional advisor.

    Copyright © 2011 Achievement Catalyst, LLC

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