Technicaly, I suppose this isn’t a recession or a depression. However, I was here in 1987 and the conditions today are far more serious with continued energy price increases that cause increases across the board and are decimating businesses and jobs. Today, more people are older and now depending on their savings and investments, which are, for the most part, performing negatively.
I really don’t care what we call it. In 6 months, my business has fallen to 50% of its 23-year-average, our investments have fallen over 12% and as people cut back to essentials, my husband’s service business, while doing ok for now, may not survive. Meanwhile, our essential costs of living, after severe budget trimming, are rising almost as fast as we can cut them back. Our hard assets would probably not find buyers if we were forced to sell right now and if we found buyers, we know we would take a loss. We are too old to find replacement work. We know many professionals and self-employed in the same situation.
This is a slow bleed compared to 1987, it does not seem to have a chance to improve before millions are without jobs, without adequate savings and some may endure real physical threat this coming winter as energy and food costs rise even further and municipalities are forced to cut services and raise taxes just to keep infrastructure running at a reduced level. Neither government aid, individual charity or self-reliance appear capable of doing much about the situations of those who will find themselves in drastically reduced circumstances within six months, if this continues and escalates as it seems that it will.
There are numerous objects of blame and the way government and the investment industry are responding is seriously lacking, to understate the situation. As we fall into socialism, the problems are going to accelerate.
I would go back to 1987 in a heartbeat.
Boy! Did Phil Graham get it right or what?! Whiners, indeed. But it is even worse than that. It’s Chicken Little Whiners. No, by golly, it’s Chicken Little Whiners on steroids. I’ll concede to all that the not-so-creeping socialism is a real problem, and it will decrease productivity over time. But, folks, we have not had even one quarter of contraction, despite the so-called “housing problem.” Quit whining, thank God for your blessings, and work hard.
I'm right there with you. The bottom fell out of my small business at the beginning of the year, very little new business since, slow pay like I've never seen on work that was billed months ago ... I've had to take a job with a customer to tide myself over; thankful for the pay and benefits, but it's less than half of what I made even last year. I shut down the office, moved the computers and such into my house, and sold equipment that I couldn't bring home, contracting that work out (not that there's very much of it). I'm handling what business I have left during evenings and weekends. Sold my company vehicle, a GMC Acadia that I really loved, early enough to have gotten a decent trade in on it, now driving a Corolla, for the gas mileage. It's averaging close to 40 mpg on my now 30 mile, one way commute, thank goodness. I'm holding my own for now, cut my debt down to just a mortgage. It does keep me up at night, worrying about just what the future holds.