Survival tactics in tough economic times: Toledo Blade
Toledo Blade
October 18, 2005
by Homer Brickey
We're forced to adopt proven survival tactics
Millions of Americans are going through tough economic times right now. Because of setbacks, they are forced to retreat to survival tactics that worked for a long time in the past.
Because of shrinking pensions, rising costs of medical care and insurance, and the fear of outliving their money, many wage-earners are choosing to work longer.
Now, there's a time-tested idea from the past: Until recent decades, "early" retirement was generally not possible. And today it's nearly unthinkable. Are there any folks left who believe they can, or should, retire at 50?
Because of waves of corporate bankruptcies and the onslaught of globalization and outsourcing, there's downward pressure on wages.
The possibilities of recession and further cost-cutting make many jobs even shakier. Many workers are already tightening their belts for a rough ride. Others whose jobs are secure now realize it will be harder to pay down their massive debts - especially in an environment of rising interest rates and tighter money.
All of this means that millions of Americans will be spending less and conserving more. Living within our means was another time-tested idea from the past. It worked for generations. Surely, it will work now.
In fact, some would argue we never should have lost sight of the need to conserve.
Many of us grew up in regions going through hard times - areas that were scarred by the Great Depression. Many recall the sacrifices, the material shortages, and rationing in World War II. Others may remember painfully the economic devastation of strikes, layoffs, corporate takeovers, and downsizing in recent decades.
Many of us who lived in less frenzied, less prosperous, and less wasteful eras also recall the mantra: "Use it up, wear it out, make it do, or do without." Those would be harsh words today, but a bit of frugality won't hurt us.
On top of all this, inflation is rearing its ugly head again. High energy prices are beginning to drive up the cost of just about everything, including transportation, utilities, and a growing list of goods and services.
All the more reason to save more, conserve more, especially if high energy costs become a permanent part of the equation.
Self-reliance was another great American idea from generations ago. But will we ever be able to fashion a national energy policy that will get us back to self-sufficiency in that costly sector? Can we save our home-grown automotive industry? Can our markets survive without massive foreign investment?
The future is clouded, perhaps even dark. But the path there seems clear enough: Work longer. Save more. Consume less. Vote.
http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20051018/COLUMNIST02/510180354/-1/COLUMNIST
Homer Brickey is The Blade's senior business writer.
» E-mail him at homerbrickey@theblade.com
» Read more Homer Brickey columns at www.toledoblade.com/brickey
October 18, 2005
by Homer Brickey
We're forced to adopt proven survival tactics
Millions of Americans are going through tough economic times right now. Because of setbacks, they are forced to retreat to survival tactics that worked for a long time in the past.
Because of shrinking pensions, rising costs of medical care and insurance, and the fear of outliving their money, many wage-earners are choosing to work longer.
Now, there's a time-tested idea from the past: Until recent decades, "early" retirement was generally not possible. And today it's nearly unthinkable. Are there any folks left who believe they can, or should, retire at 50?
Because of waves of corporate bankruptcies and the onslaught of globalization and outsourcing, there's downward pressure on wages.
The possibilities of recession and further cost-cutting make many jobs even shakier. Many workers are already tightening their belts for a rough ride. Others whose jobs are secure now realize it will be harder to pay down their massive debts - especially in an environment of rising interest rates and tighter money.
All of this means that millions of Americans will be spending less and conserving more. Living within our means was another time-tested idea from the past. It worked for generations. Surely, it will work now.
In fact, some would argue we never should have lost sight of the need to conserve.
Many of us grew up in regions going through hard times - areas that were scarred by the Great Depression. Many recall the sacrifices, the material shortages, and rationing in World War II. Others may remember painfully the economic devastation of strikes, layoffs, corporate takeovers, and downsizing in recent decades.
Many of us who lived in less frenzied, less prosperous, and less wasteful eras also recall the mantra: "Use it up, wear it out, make it do, or do without." Those would be harsh words today, but a bit of frugality won't hurt us.
On top of all this, inflation is rearing its ugly head again. High energy prices are beginning to drive up the cost of just about everything, including transportation, utilities, and a growing list of goods and services.
All the more reason to save more, conserve more, especially if high energy costs become a permanent part of the equation.
Self-reliance was another great American idea from generations ago. But will we ever be able to fashion a national energy policy that will get us back to self-sufficiency in that costly sector? Can we save our home-grown automotive industry? Can our markets survive without massive foreign investment?
The future is clouded, perhaps even dark. But the path there seems clear enough: Work longer. Save more. Consume less. Vote.
http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20051018/COLUMNIST02/510180354/-1/COLUMNIST
Homer Brickey is The Blade's senior business writer.
» E-mail him at homerbrickey@theblade.com
» Read more Homer Brickey columns at www.toledoblade.com/brickey
posted by Kathie Bracy at 7:22 AM
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