financial collapse why do we care?

[jonahtrainer]

Either of the depression scenarios sounds like lights out for the middle class. How will this nation, or in fact, this WORLD, operate without the middle class?

I'm PROUD to be a middle class, blue collar worker who knows how to turn a fucking wrench, fix a fucking leak, replace a toilet, paint a house, fix a broken light, etc. How will the world survive without people like me?

I intend to speak objectively so please do not take it personally or that I endorse how things are. As an Austrian economist I leave such value judgments to others.

I hope you do not overvalue your own labor. There are 2.7 Billion people in China and India who are both willing and able to do those tasks for a fraction of the cost. As a result, they are competing with you in the market for commodities like wheat, oil and gold. To compete your living standard is decreasing because your ability to purchase real things, show by the purchasing power of a synthetic commodity the dollar, is decreasing.

Go ahead, measure your salary over the past few years in terms of gasoline, wheat, corn soybeans, gold, iron, steel, tellurium or anything else that is real. Where is your 'raise?' The world is getting along just fine without you (American middle class) as anyone who has travelled to India, China or South America lately can verify. In fact, much of the world would be much better off financially if the American middle class dropped off the face of the earth. This is because the American middle class is overpaid for their production.

The bottom line is that the world does not need more labor (people who look for jobs) or even a middle class. What it needs is more capital (rich savers) and entrepreneurs. The market will reward such by increasing their standard of living. Many of these rich and entrepreneurs are emerging in Brazil, Russia, India and China.

 

[madengr]

Sorry, I don't want to see an economic collapse. I max out my 401K every year, put money in my Roth IRA, saving for kid's college. I don't have any money left over after bills, but my wife stays at home with the kid and I just have mortgage debt.

My mortgage debt is allot, but my investments and raw land I own far outweigh that so my net worth is allot more then my mortgage debt. So by people defaulting on debt my savings are depleted via inflation.

The grasshoppers will just eat the ants.

 

[Allen72289]

We can use the collapse to indoctrinate Americans with liberty just like they used the depression to indoctrinate the masses with communism.

Active people who are willing to lend a hand to their starving American will be a greater influence than any election.

 

[madengr]

My grandmother used to tell me stories about the depression. She said men would knock on the back door asking for a meal because they were too ashamed to knock on the front door. Her mother would put them to work (yard work, fixing stuff, etc..) and then feed them. They were thankful for the work and food. There were neither riots nor thievery. Somehow I don't think it will happen that way nowadays.

 

[Allen72289]

It would be so interesting to talk to a depression survivor.

Maybe I will pick my grandmother's brain.

She was 6 at the time though.

 

[mcvac]

My grandmother used to tell me stories about the depression. She said men would knock on the back door asking for a meal because they were too ashamed to knock on the front door. Her mother would put them to work (yard work, fixing stuff, etc..) and then feed them. They were thankful for the work and food. There were neither riots nor thievery. Somehow I don't think it will happen that way nowadays.

i believe you are right...my grandfather quit school at seven years old and shined shoes to feed his brothers and sisters and put them through Catholic School...Later he educated himself and became a self made millionaire and reknowned philanthrophist for the poor...

Despite his wealth he lead a very humble life and is remembered dearly by those who had the chance to know him.

He was on his deathbed worrying about work that still had to be done.

I cannot imagine my seven year old doing such a thing...we are too completely spoiled and take most for granted..Waste in our society is rampant..We are consistantly bombarded with images of wealth and the do-nothing approach to recieving it...

If our economic system were to crash...I believe most of society would be banging at the front doors of those with food demanding their share in the throws of a temper tantrum...when that wouldn't work...I am quite sure they would use force..

This is definitely not the mind set of the first depression..