Monday, November 26, 2012

Why We Lost Our Confidence

What we think, what we believe, and what we then act upon--collectively determines our vision.

This last weekend tells its own story.  Black Friday led to Small Business Saturday which soon moved aggressively into Cyber Monday. At last, we have regained our collective confidence in the future. We began to spend, to invest, and to give.  Such actions can only prove that we are ready to move ahead in re-growing our local and national economies.

The laws of economic growth never change. Unless spending occurs, companies react by cutting back on expenses. Many will  downsize operation costs, while a few will go out of business altogether.  Work opportunities will then begin to disappear, causing even less spending. When enough of the population stops spending, a vicious cycle ensues that can choke everyone's confidence in the future.

Preceding the weekend's healthy buying period  were some economic growth indicators that mattered.  

Housing starts for new construction began and continued to rise.  Employment rates  are still steadily climbing.  The ever-important automobile industry began to thrive once more.   And just as significant, our  very mindsets changed.

Hope and confidence  dared  to displace  our   hypnotic and paralyzing and  fears and doubts.

Indeed, such are the markers of an economy ready to expand, an economy inclusive of all segments of its population, an economy primed to resume wholesome living again for its citizenry.  Lessons learned?

If we wish  to bypass muddling  through another period like the one we have just survived, we must take responsibility for our own personal money management from this point forward.  That we did not do so earlier in a likely explanation for our loss of confidence.

Credit cards are to be used as tools and not as the mainstay of our finances.  If a mortgage or a car note is unaffordable, we must seek a more reasonable option. A lender can not force a back breaking deal on us if we don't sign on the dotted line.  Lastly, as technology changes the work force, we must upgrade our educational capabilities to compete, and to compete strongly on a global level.

I don't know about you. but I believe that we have a really good shot at many more promising buying periods similar to the one we enjoyed over the last few days. Companies are encouraged. Our confidence is back... and the best is yet to come.

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