<p>I admit I am somewhat of a glass half empty type and with that said I ask you all: Are you concerned about the economy?</p>
<p>I am concerned that the US economy is now so tied with the global economy that we are now entering a period of change that we know little about. I am surprised daily by how the market knee jerks to small indicators. </p>
<p>I am concerned with the trillions of $$$ spent in a war effort.</p>
<p>I am concerned for the economy following the next terrorist attack.</p>
<p>I am concerned that so many people are beginning to lose their homes because they couldn't afford them to start with. Mortgage loans are now all tied into the market further confusing the matter. Many people have spent their equity and cannot afford to sell to downsize. We are headed for a recession.</p>
<p>I am concerned that we are still entirely dependent on buying oil to make our world go. We don't have enough; our "enemies" control it. Our economy is greatly in their hands.</p>
<p>Health care costs are becoming increasingly impossible for many to afford.</p>
<p>So when someone asks "should I follow my dream and go to school x I just have a really hard time of saying "Yes, follow your heart" and not "What are you thinking...look around you!" Do not go deeply into debt if you don't have to.</p>
<p>I am concerned about all those things too...BUT</p>
<p>If you are feeling overwhelmed by it all I strongly suggest a temporary "news black out." I think those of us who follow the news closely (OK, too closely) - well, it can creep into our lives a little too much.</p>
<p>Turn off CNN, don't read the paper, immediately recycle Newsweek - just for a couple of weeks. Our lives go by much too fast to ruin everyday of them worrying about how screwed up things seem.</p>
<p>I actually look at it the other way. The economy is going to hell in a handbasket, jobs that are here today may be gone tomorrow, the most lucrative career for our kids hasn't been invented yet. So what the hell, since you can't predict security anyway, do what you want along the way, and follow your heart! At least you'll have some good times to look back on!</p>
<p>Weenie...I am not sure I feel so overwhelmed;; I do feel it's time to reduce my debt and advise my kids to not take on much debt at all. I am feeling a strong need to pay as you go and save up some cash.</p>
<p>Course it's people like me who start a recession:) and people like Chedva who keep things moving:)</p>
<p>BUT -- things are not as awful as they used to be. In the '30s, we had the Depression, where families didn't have food to eat, where people lost their houses, where there was no work to be had. In the '40s, we had substantially all men overseas in War, and millions worldwide being killed. In the '50s, we had polio to worry about, and the bomb. </p>
<p>And so forth. And so on.</p>
<p>Yes, it is now a world economy, and I think the chances are good that the US will no longer (IS no longer) the dominent economy. Health care is a major concern of mine, both personally and professionally, and something I feel passionate about. But I think we are making progress (glacial, I'll admit) in that regard. </p>
<p>I don't things are any worse than they've been in decades past; I think you're just more sophisticated in your understanding. so now you know how bad it really is!</p>
<p>Sit tight and take care of your own. Live frugally and conservatively. Don't buy anything you can't afford. Put your money in a well-balance portfolio. Don't invest in risky things. Quit smoking, lose weight, and start exercising.</p>
<p>sax
Im very glad my two kids have/will graduate with no debt and are able to follow their hearts into the field of their choice and not have to chase a buck to pay back student loans.I'm very glad my older D picked a grad school/program that offered a fellowship/TA thats enough $$ to live on in the city its located in. I'm very glad my S picked a highly ranked program at a not so highly ranked public U with a full ride over pricier "ranked" schools,which would have left hime with tens of thousands of debt afterward.</p>
<p>I agree with you re: debt. My husband and I have never been comfortable with a large amount of debt and we lived accordingly. We are now debt free.</p>
<p>I don't know how it will be for our children, but we have taught them to live frugally and live within their means. We never gave them allowances so they learned at an early age to work for what they want and to save what they can.</p>
<p>I don't think that the world is really any worse than it was when I was a teenager or in college. I'm 48, so in my lifetime: JFK, RFK, MLK were assassinated, the Vietnam war was waged, filling up the car meant going on either odd or even days and waiting in line for an hour, inflation was rampant, the economy was stagnant and the Cold War meant that nuclear annihilation was a possibility. And that's just my teenage years!</p>
<p>I think it's never a good idea to live up to or beyond one's means. Caution and frugality mean that one has choices and options during difficult times. But there's also the idea of a risk/return ratio. If a student has a better chance for a better career by taking on loans for education, I think of that as an investment, not an expense. With the stock market being so naughty at the moment, it seems like everything is in terrible shape, but the Dow is just back to wear it was a few months ago.</p>
<p>I think things are great and are looking up all the time. As others have pointed out, compare the wealth, opportunities, advanced health care, etc. to any time in history and you'll see that it's generally much improved. </p>
<p>It wasn't that long ago that people were disabled and dying from conditions routinely addressed by the health care system today. Yes, it does have a cost but now people can undergo MRI and CatScan tests rather than exploratory surgery, they can take drugs to resolve conditions that would have killed them not long ago, they can have failed joints replaced.</p>
<p>In this country the 'standard' abode has increased substantially in size and furnishings since I was a kid. The number of 'things' people have has increased and is continuing to do so. Yes, people must take care to not incur too much debt but this is something that most people have control over and some will make wise choices and others not.</p>
<p>There have always been wars to support and unfortunately always will be. It's a cost our country must be willing to bear if we're to remain a free country. The scale however is not anywhere near as great as in past wars. We can thank technology for much of this - also improvements made within my lifetime.</p>
<p>I agree with weenie to occasionally take a break from the daily assault of the news industry who go out of their way to present the most sensational (re 'bad') stories they can in the pursuit of ratings and more income. All too often there's no effort to temper the bad news with all of the other good news that's happening every day. </p>
<p>Follow one's dreams? I say yes, but with one's eyes open and with a dose of practicality.</p>
<p>Thanks gang. I wasn't really putting any thought into the historical perspective at all which does help lighten it up somewhat. I guess the market really surprised me these last two weeks and I'm just feeling edgy:). Soon these boards will be full of threads trying to figure out how much debt to take on and it really got me thinging.</p>
<p>At least we don't have to worry about runaway buggies anymore!:)</p>
<p>I do worry about all the risk that's been transferred to us in my lifetime, especially when it comes to health care and pensions. No matter how frugal you are, bad luck when it comes to health, can wipe you out. But I, too, am hopeful we will finally get some sensible health care insurance reform, now that businesses have to compete globally with countries where governments bear the cost of health care.</p>
<p>^^ Speaking of globalization and health care, I heard that some insurance companies are offering 'outsourced' elective surgeries (joint replacements, etc.) where the patient flies to India or someplace, has the surgery, stays at a recuperative facility, and then is flown back home all as part of the insurance coverage and that if they do this the coverage is more complete because the actual costs (to the insurance company) are lower. Every now and then we have to be careful what we ask for.</p>
<p>I told my son that if he could get a private school down to the cost of an in state public school through scholarships, he could go where ever he wanted to. He did his part.
I don't think you can live with a "what if" attitude. Our economy is driven by attitude and perception. You can always find someone or a group of someones with a doomsday attitude. If Al Gore is right nobody will be here long enough to have to worry about the debt :)</p>
<p>You should always follow your dreams because 30 years later you will be able to look back with few regrets, at least about that. If the dreams becomes an utter impractibility-then a change might be called for. But for now stick with it.</p>
<p>About the future-ah I am not so optimistic. The USofA if now in empire mode. Any rational look at history shows us that empire is not economically sustainable. With the national debt not at about $30,000 for every man, woman and child and with the fiscal unsustainability of Mecicare, Medicaid, SocSecurity and health care system, and with military spending which exceeds that of the rest of the planet combined, you tell me when the collapse will come?</p>
<p>ranc..Doomsday attitude? Not sure I would go that far. Economy driven by attitude and perception. Absolutely. The market shows this daily. However there are certain very real problems that appear to be coming to a head at the same time.I certainly believe recession is in the near future without a crisis. Throw in a very real crisis like another terrorist attck or oil crisis and you have a major problem. Doomsday no ........but I sure wouldn't want to be sitting on a lot of debt.</p>
<p>For 2003, it was 3.7%, the same as 1995. Compare that to 4.8% in 1992, 5.8% in 1998, 6.2% in 1986 etc. We may spend more than "the rest of the planet combined" but that's because we are the one of the richest. </p>
<p>I think it's easy to focus on the negative issues, because that's what get's media notice. But when you look at the facts, I see plenty of reasons to be optimistic.</p>
<p>I agree about not wanting to be sitting on a lot of debt, either in bad times or good.
I think kids have to consider debt/earnings ratio. What is their chosen field going to pay right out of college or 5 years out? Some might pay the debt quicker than other. </p>
<p>sjmom2329</p>
<p>I agree with you. All I will add is cautiously optimistic.
Take a look at what the percentage of GNP defense had in WWII.</p>
<p>I'm trying to be optimistic because the alternative is too depressing. Go to the library and get the Little House" series by Laura Engels Wilder. Beautifully written and a good reminder, not only of how much comfort and convenience we take for granted but also how good and loving people can survive and thrive through just about anything. My favorite is "The Long Winter".</p>