Surviving the Economic Crunch.

Surviving the Economic Crunch

All around the world, men and women are experiencing a severe economic crunch not seen since the depression of the 30s or the oil shortage scare of the 70s - and this is relentlessly affecting our quality of life.

 In America, imports have grown and production has shrunk.  Most products are now made in other countries where labor is cheaper.  Manufacturers say Americans want to work, but only on their own terms.

Americans are having a difficult time adjusting to a global economy as the domestic demand is weak and the dollar value declines.  We search for happiness and prosperity in a world of change and scarcity.

The Economy Will Improve

 One thing we can depend on is that the economy is always in transition - it goes up and down.  We’ve always seen bad times become good again and with proper belt tightening and planning, we can survive all problems - including this economic crunch.

Our economy, despite high prices almost everywhere, is still showing some positive growth.  Credit is tight and so are household budgets.  Families are cutting back, even doing without, to make ends meet.

It’s becoming rare to find a family where both husband and wife don’t work.  Many of them are now working two jobs just to pay for the necessities.  However, many employers are being forced to downsize their staffs and more employees are pleading for the opportunity to work at home or telecommute.

As jobs decrease, applications for food stamps increase.  Requests for more handouts reflect the state of the economy. Major purchases such as autos, TVs and homes are being delayed despite give-away interest rates.  They’re struggling to pay the obligatory bills with luxury items put on the wish list.

 Gas Prices Climb

 Much of the economic crisis is blamed on high oil prices resulting in soaring gasoline prices.  Many economists say gas prices will continue to rise, due in part to recent and future weather storms causing gas to climb to five and possibly six dollars a gallon. Thank God lately we have seen a slight decrease in price.

Who’s to blame for the staggering gasoline prices?  Blame falls in many areas, including increased demand, shortage of supply, oil speculators and the weak dollar.  The average person has little if any control over these factors and must seek other ways to cope and survive.

 Food Crisis Looms

We’re not only experiencing a gas crisis, but a food crisis as well that some say could threaten world peace.  There have already been food riots from Mexico to Pakistan. Many countries are buying in larger quantities because they’ve stopped or cut back on growing their own food.

Demand is up and supplies are down and prices react to increased demand by also rising. Worldwide food reserves are at their lowest in almost 40 years.  Consumers in some countries have called for boycotts on certain foods in an effort to bring prices down.

Italy called for a boycott of pasta, but it had little effect.  Rice, as Asian staple, is in very short supply and costs have skyrocketed.  High oil prices are receiving the blunt of the blame as the ripple effect is felt on corn, which is being diverted to production of bio fuels.

New markets mean shorter supplies and higher prices.  Food speculators, like oil speculators, are fanning the inflation flame. Oil prices have affected fertilizer prices and the transportation of food to market.  Extreme weather conditions have also played a part in food shortages and will always continue to do so.  Mother Nature is as hard to control as oil suppliers.

In closing what can we do to make sure we not only survive this economic crunch but we thrive in this economic crunch. What are some of our options. We can go back to school and all get better paying jobs. We may have rich relative to leave us a large inheritance. We could even marry into money. If we're lucky and can pick the right six numbers we could survive that way. Another option is to start a business. There are solutions to any situation(s) that we face. What solutions we pick today will determine the quality of our life tomorrow.