US Recession Revisiting 1930s Depression

Trim Budgets, Skip Luxuries, Stock Supplies

Overconsumption and suppliers rushing to fill our demands and a shift in pricing in our economy has lead to underconsumption. When the law of supply and demand is thrown out of balance (with societies beginning to consume less due to the rise in prices, and the market continuing to supply the world at their current rate), a recession is inevitable, but is it really a Depression?

We can see this in the real estate market's increase in foreclosures and banks making fewer loans by becoming much more conservative and scrutinizing their lending policies ( you have to have an almost stellar credit rating before they will lend you money to buy a house). People are losing their homes; the rental market is up. These are all factors reminiscent of the Great Depression.

The price of gasoline is up 24.1%. The price of milk is up 39.5%. With the recent rice shortage, the price has quadrupled in just recent weeks. On the average, inflation is supposed to go up 3%. A fifty-nine cent package of spaghetti is now $1.00. A $1.00 can of tuna is now $1.25. A $1.00 bag of a pound of rice is now $1.39.

Food and oil are not the only things that are being effected. Movies in Manhattan went from $11.00 to $12.00 overnight. A regular dinner out with friends has jumped from $18 per person to $35 per person at the same restaurant, ordering the same meals and drinks.

Once upon a time, when our grandparents were younger, they found joy in taking walks in parks, going to free events, listening to the radio, and spending quality time with their loved ones. They didn't have these little luxuries that we've become so accustomed to like cell phones, televisions and video games. Even movies were brand new back then (and silent).

It's very likely that if you are about to foreclose on your home, you have no emergency cash reserves. It's already been spent ten times over and you're closer to bankruptcy than anything else. Your only concern is where you are going to live, what food you are going to put on your tables, and how you are going to survive.

Re-consider how you run your household expenses. Is the cable/internet at home really that much of a necessity? How about renting a movie or reading. For all of those little luxuries you have in your home (including electricity), you can shop around and find a better deal.

You don't have to stick to just one provider. Also, consider going green at home. Changing the way you use electricity will help you save money. Households using wind power had monthly bills running around $11/month. That's a significant difference then those who use gas companies.

There are various ways you can curtail your expenses so you can apply more money towards your basic necessities in life. It just takes a little bit of research and putting these changes into effect.