I recently read an article on wire.com that really had me excited from the title. Like most Americans, and people around the world, our ears (in this case eyes) perk up when we see that the economic conditions might be improving. So, you can imagine my interest when I saw the the first part of the title, “Another Positive Indicator:, but as I finished scanning the article my heart sank –Another Positive Indicator: More Consumer Debt. Seriously, more consumer debt is a positive thing?
According to the article, Americans increased their borrowing by $20.4 BILLION in November 2011. Along with the story, I heard someone interviewed on radio say that either people are feeling more optimistic about their jobs or that they have very short memories. I vote for the later.
Why would we, collectively, increase our borrowing more? I think it is part of the Thanksgiving Day Syndrome where people feel that they have a little more room and then gorge themselves with more. Instead of turkey and pie, in this case it is debt. They have lost the feeling of the pain from the last episode and now they can take on more.
Do you remember the definition of the word “insanity”?
One of my clients recently shared with me that in all their years of marriage, this past Christmas was their very first debt-free one. They indicated how all the gifts were purchased and paid for well before the holiday. And while they escaped the mad rush and stress of the holiday spending, now they are stress-free knowing that there are no credit card bills on the way to their mailbox.
Why do we go and spend more than we have? One example to all of us may be our government. This morning I read that our president is requesting $1.2 TRILLION be added to the debt ceiling.
I guess some of us will never learn…
I agree with your article and our President is a disgrace! He makes me sick!
As for me, it is his policies and lack of leadership that make me sick. His fiscal policies are destroying this country. I am sure he is a nice man, but he and his team are not doing what I would hope they would in moving this country forward.