It’s no hidden fact that recessions are cyclical. In fact, it seems that they happen around every ten years, with the exclusion of the current recession we are in. The current recession has hit the
(2001-2003) (1990-1991) (1980-1982) (1973-1975)
What continues to astonish me is the difference in the way certain generations handle recession periods. Many people during a recession forgo large, expensive purchases as well as luxury items. They start buckling down on expenses, cutting back on items that aren’t an absolute necessity. It seems like more and more people are making their own laundry detergent, bread, and looking for other ways to be frugal. While I do believe that people are cutting back, I don’t think that people are sacrificing as drastically as say, in 1980.
The standard of living is a lot different than it was back in the Eighties. It seems that today people want bigger houses, bigger cars, better jobs, and more “toys”. I believe that part of the reason we are in such a crisis economically is because many families overextend themselves financially. The majority of the economic crisis is a result of people borrowing more money than their home is worth. If people would just cut back on the extravagancies, they would be in a much better financial situation.
The outrageous price of gas is probably one of the most prevalent points brought up every day. Back in 1980, gas prices were $1.25 for a regular gallon of gas, compared to today’s $3.75 a gallon. Every single consumer is affected by gas prices, either indirectly or directly. Gas prices go up, groceries go up, and many people struggle to pay their day to day expenses. There has been talk about a gas strike, but what would really have an effect on the gas companies would be if Americans would use less oil. If everyone cut back their driving, that would have more of an effect than boycotting large oil companies or not buying gas on certain days.
Personally I believe we will pull through this one way or another. I know that I’ve been dealing with the recession by limiting my fuel and energy consumption, paying down debt when I can, and saving every extra little bit of money I can in case something tragic happens. I am a worrywart by nature, and the more money I have in my savings account, the better I feel. I think it’s interesting how different people handle the recession. What are some things you are doing to cope with the recession?