Sunday, July 20, 2008

The Economy

Is a scary thing these days. Maybe I'm naive but when gas prices sky rocketed I didn't know what a domino effect it would have to the rest of the word. I'm talking with regard to businesses, jobs, our personal lives. Oh, I knew some things would be effected, but gosh, now it's getting down right scary! And it's just starting.

My hubby keeps telling me to watch it. Meaning, of course, my spending. I'm making good money but all of a sudden everything else has gone up to a ridiculous point. I used to make it to work and back on a tank of gas that ran $26, now it's closer to $50. Groceries for the two of us has jumped from $80 a week to around $120 for the same stuff. If anything we've cut back.

I've noticed small mom and pop businesses that have been around for like, ever, are closing their doors. And they're not re-locating! Big companies are laying off people. I have a friend who has worked at the same job for 6 years. The other day they let her go with $5000. Now you're thinking, well, she got something. That should carry her for a while. Okay, what about the health benefits she lost? This is a person who had a heart transplant 10 years ago and takes thousands of dollars worth of meds a month to stay alive. How is she going to survive?

Another friend works for a huge company that hands out generous bonus checks to their employees every month based on their productivity. Unfortunately it's not individual, which means they put everyone in the same pot. You might have one person who excels and another one who could care less. Their bonuses are based on the whole team. For the first time in her 5 years with the company she didn't get a bonus last month. She couldn't make her car payment. What's going to happen if next month is the same?

Houses aren't selling, now is the time to buy but people can't afford to buy. People who've fought to keep their credit good are going to be forced to make a decision that will ruin it in order to survive. Get behind on payments. Drop things they need like insurance, take the meds they need every other day instead of every day. Get rid of their beloved pets because they can't afford to feed them anymore. It sounds ludicrous but it's a fact becoming more apparent every day.

A sad fact that the economy will get worse before it gets better. But what can we do but ride out the storm?


margaret blake said...

These are frightening times, Debbie. I noticed when I was in the States how everything was on sale, and compared to here, clothing was so cheap. But your gas prices have been hiked up.

We are not as bad over here but bad enough, price of food is escalating and don't ask me about gas - I mean we are over one pound per litre. When my son was in Dubai gas there was 25 cents a gallon.

We have to get a different fuel.

Fortunately, we have the National Health Service, it aint perfect but it is free and no one needs to go without medication, thank God.

Believe me I have reasons to worry about what is happening on your side of the pond too!


Kathleen said...

Good blog, Debbie about things that concern us all.

Debbie Wallace said...

You're right Margaret. The last time I went to the mall it seemed every store was having a sale and I noticed a few shops had closed up.

I'm sure you hear a lot about it from your family here in Tampa.

I have a feeling that we'll have something similar in health care in the future. Something HAS to be done.

Debbie Wallace said...

True, Kathleen. We're all effected by what's going on, one way or another!

Sarita Leone said...

Very thoughtful, and thought-provoking, Debbie. You make so many good points; thanks for such a great post.

And I loved your photo of your darling granddaughter! Oh, she's getting so big and she is just so sweet! :)

Debbie Wallace said...

Thank you Sarita! Alivia brings so much joy and happiness to our little family. She's so cheerful and smart and...aren't ya glad you got me started? LOL