Archive: Opinions

Less is More

We are in the midst of a crisis. Industry and manufacturing have been hit hard by the economic downtrend that experts believe began nearly a year and a half ago. The nation's automakers, Ford, Chrysler, and GM, have lead the parade of dismal news with monthly losses that are simply unbelievable. These three companies alone have reported billions of dollars in losses over the last four quarters. Other industries that produce durable goods and large ticket items like TV's and major appliances have announced near record losses as well. For most of us, these numbers are incomprehensible.

 

As a result, our nation's workforce has suffered mighty losses as well. Unemployment numbers continue to rise with each passing month. In January of this year alone, over 650,000 workers lost their jobs. As this article goes to print, thousands more are added to this number of unemployed.

To make matters worse, our nation's financial system grows less stable with each passing day. The stock market has lost over 40% of its value in the past year. Banks and investment firms are finding themselves on the endangered species list. Some of the most beloved names in banking and finance are merely footnotes in the annals of economic history. Institutions such as Wachovia, Smith-Barney, and Merrill-Lynch, once corner stones of the financial world, are now buried under an avalanche of debt, mismanagement, and greed. Americans have lost their trust in these institutions, and this lack of trust has added to the economic uncertainty.

It seems that we are in a downward spiral with little good news in sight. But how bad is it? Are all sectors of the economy feeling the effects of this recession? Is it specific to certain areas of the economy? If we compare the current crisis to the one which everyone is trying to compare it with, the Great Depression, we may discover that our current recession is not quite as bad as we may think.

 

Numerous experts have offered their opinions on the topic. They have based their arguments on theoretical analysis and economic models that predict outcomes. Yet none of these so called experts actually lived through the Great Depression. So I called upon one of the few experts that experienced the Great Depression first hand, my 97 year old grandmother. I asked her what she thought of the current financial crisis and how it compares with the Great Depression. Here are some of her thoughts on the Great Depression and the current crisis.

"Shall I tell you," Grandma began, "Times were very different back in '29 and '30. Back then there was nowhere to turn for help so those in need went wherever they could. People lined up for free shoes, fruit, bread, meat and dry goods whenever they got word of their arrival. Some days you were lucky and got what you needed. Other days you went home hungry and tired."

Grandma recalled the constant news of bank closings, home foreclosures, and millions standing in breadlines. She reminisced about FDR's fireside chats, and how his voice brought calm to the country. She continued along the usual topics associated with the Great Depression until I heard her say something which I think holds the key to our current situation.

"Matthew," Grandma always adds your name for emphasis, "I guess we learned how to do more with less. Our people on the farm had all the food they needed so no one went hungry. There was little extra money, but that did not matter as we were all in the same boat. We did for ourselves. We made our own clothes, fixed what was broken, and even had picnics and dances with other farm families. They were tough times, but they were good times, too."

Her words were surprising to me and I assume many of my generation. How can one do more with less and have good times? Her words continue to echo in my mind as I read about the stimulus package and listen to pundits from both sides of the aisle claiming to know what will work and what will not. No matter what the outcome of our current financial crisis, one thing is for sure, we are all going to have to do more with less.

 

Each of us will have to learn new and creative ways to continue our lives in a simpler and healthier fashion. Perhaps we will return to the basic know how and ingenuity of our parents and grandparents. They bought just the essentials. If anything needed repair it was patched, glued, welded, sewn, nailed, remolded, darned, reshaped, turned into rags, and when it had outlasted all possible use, it was placed on the scrap pile to be sold to the junk man.

Yes, their way of life is a snapshot in history, an idyllic era that cannot be repeated by our modern society. However, we do need to recapture the spirit by which they lived during hard times. They enjoyed simple pleasures that did not require gigabits of memory, cell phones, Ipods, or batteries. Neighbors talked with neighbors, sat down at table together, gave thanks for what they had, laughed and cried with one another, and looked forward to a day when times would be better.

They possessed the one thing that many of us lack today, and that is cautious optimism. So as our political leaders iron out the details of the stimulus package and the pundits preach their gospel of economic uncertainty, let each of us begin to live our lives within our means. Let us challenge ourselves to do more with less, to endure the tough times, and enjoy the simple things in life. I know Grandma is planning to do just that - for the second time in her life.

 

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