Anybody else worried about economy?

[tink2006]

It seems that things just keep getting worse I know that the media, at times, can portray more doom and gloom than necessary but it seems that there is no relief in sight. Gas prices are ridiculously high and now food etc seem to be going up as well The other day I actually thought of cancelling our July trip to WDW just in case things get really bad. I would hate to spend the money on a vacation only to find out that we need the money later. My DH said not to worry

What do you think about the economy?

[BelleLovesTheBeast]

I don't think it's going to get better soon. The gas prices here have been going up several cents every week and they are saying it should hit $4 by the summer. Farmers are starting to grow less wheat and more corn which will drive up the price of the wheat products. I recently hear that Feb was a bad month for the retail companies because of this. People aren't spending money and it was much worse than they expected.

However even with all of this....still go....have fun.

If you are worried I'd just cut back on non-necessities. That's what we have done. And don't forget about the tax refund that is coming.

[kaerbear178]

I'm in the building industry right now. The company I work for is REALLY slow right now. They told us they don't want to lay anyone off but they aren't giving any raises this year. SO higher cost of living and no extra money really is hurting people, especially the warehouse guys. Most of us are happy that we are just keeping our jobs! The hard part is that if anyone quits we can't hire anyone to take their place so we have extra work added on.
My husband and I are in the process of needing to start our careers, the jobs we have now were meant to get us through school. Our school loans will be coming due in June and I don't have a clue how we are going to pay for them. Its hard to work so many years for something and then have to stuggle afterwards.

[GrumpyFan]

"the only thing we have to fear is fear itself" - Franklin D. Roosevelt

I believe this is very true. If you're job is going well, and things are fine for you, then don't worry. That's not to say you should ignore what's happening around you, but don't obsess about all the doom and gloom the media is feeding you.

[Disneyatic]

I have to admit that the state of the economy is getting a bit scary.
It's hard to know what is media driven and what is actually happening.
I read an article from a big time economist the other day and he wasn't very optimistic about the state of things.
My husband and I work for the same company and it is directly effected by gas/oil so needless to say it has been struggling lately.
We are just trying to discipline our spending (which I am not very good at )and be as strict on ourselves as possible to prepare for the worst.
We have a trip planned for December and are holding on tight to it! I want to do everything possible to NOT have to cancel!!

Good luck to everyone else!

[bleukarma]

I feel the same way you do, it’s REALLY scary!! I work in the doomed real estate business and I haven’t had a raise in two years because of the failing market. But everything else around me has gone up so I have forced myself to cut back to just the essentials. I have a second job in retail, but because less people are spending money they are cutting hours like crazy. It’s really bad!! However, I am keeping my birthday Disney trip in May…although I cut it back from a weekend at Disney to just a night. Even though I will have to work extra to pay for the hotel/tickets/food, I NEED this trip…if only for my sanity for a night!! We all need time to get away from the stress and WDW is the best place to do it! I say to keep your trip, but maybe cut back a little for your peace of mind. That way if things to get worse then you won’t beat yourself up for spending to much at WDW, but you can still look back and think “I’m glad I took that trip…I needed it now that times are tough.”

Good luck!! I think we all need a support group for this stressful time!!! Haha!!

[murphy1]

When I was 23 I took a long weekend trip from Tampa to visit a friend in Naples, Fl. The next Monday, I was laid off my job. The trip was the best, I wouldn't have done it if I was laid off prior, but it was back around 1990 when the economy was as bad. Some things are out of your control. We know things are probably going to get worse here before they get better. I don't have a job right now, my dh is the sole provider in the now-shaky field of engineering. I know it's hard nowadays, but you have to have fun, too!

[IloveDisney71]

I'm a teacher so thankfully after 13 years I've got job security! BUT I'm really feeling the "hit" in my gas bill and grocery bill! Last year I downsized from an SUV to a small car but the gas is still high! Yesterday the gas hit $3.26 at my corner gas station. I don't get it!?!
My husband said we are going to have to start clipping coupons or something and I haven't done that in years. We are also trying to plan a trip this summer (not sure where) but we don't know how much we should spend on a trip.

[LauraF]

It's scary but I think we'll all get through this period (though some of us may be a bit worse for wear!)

I'm planning on buying my first house and I sometimes sit up nights wondering how I can do it. I have the money to make payments with plenty left over each month, but I worry it could be tight as I expect to have to buy a new car within the first few years of my mortgage. (Right now the current one is almost paid for, but since I drive 30K+ miles a year, the car won't last for 10 more years.)

I worry a great deal about gas prices. As it is I fill up every 2.5 days on average and I nearly spend more on gas than I do on my car payment! Even if I were buy a hybrid car, the increased purchase cost would pretty much kill any gas savings I might realize unless prices start dropping.

But I also know I can't put my life on hold. Yes, I do cut back on things - currently trying to eat out less, though the last thing I want to do is cook on the evenings after work. But instead of taking a long vacation and flying, we're doing a driving vacation and staying at B&Bs. I'm not going to cancel vacation unless ends stop meeting. (May they continue to meet! )

[Tinkerfreak]

I am now paying 3.34 for a gallon of gas. We are Building a new house and it won't be done until the end of June. Right now we are paying 2 electric bills, 2 phone bills and heating 2 houses. Talk about straining your budget. I stay home and do bookeeping for our construction business so I don't collect a wage. My Dad had a stroke before Christmas and is paralized on his right side and can't speak. They are sending him home next Thursday because medicare won't pay for more than 100 days of his care in the nursing home and my mom can't afford the $300 a day cost to keep him there. There is no way she can take care of him on her own so I will have to be there all day and my brother will be there at night.
I am so anxious to get into our new house and sell the old one. So far the economy hasn't had an impact on our customers, they are mostly millionaires from out of state remodeling homes on the coast that Mainers can no longer afford taxes on so they have had to sell.
We are hoping to keep our plans for our trip in November. I have cut back on splurges like Starbucks, eating out etc. We have made our girls cut back also because we feel they need to learn that sometimes you need to tighten your belt. Now they don't always get that pack of gum or tick tacs they want and we don't buy them clothes just because they want them, they have to need them.
I'm not trying to start a political war so please don't take it that way but I just wish our president would just admit that we are in a recession. Denying it won't make it not true or make it go away. If you don't face a problem you can't fix it.

[DisneyDog]

My DH was recently laid off, but thankfull he found a new job within a few weeks. He started at his new job today. He's working in the city, so he'll take the train so he doesn't have to pay for gas and parking.

I was just at the mall yesterday (one of the largest malls in the country) and couldn't find a parking spot. Everyone was shopping and spending money. I am worried about the economy, but people are obviously not cutting back just yet.

[AuntDJ]

I too worry about this. I work in the Student Lending industry and we have had a huge hit this year. 2 of the top 10 lenders in the businees have gone under. My company is not one of those, but we are taking hits. My office is one of those hits and will be shut down as of May 2. There are branches all across the country and 4 of them are being shut.

It is no fun and really hard but they are giving us a really good severance and I am determined to keep my Disney trip in June. Luckily, I am frugal by nature so most of the trip was paid for when the announcement of lay offs was made...

I left a PM for kaerbear178; however, most student lending companies want to help you make these payments. If you are choosing between a house payment or even a Disney trip and you student loan payment, call your lender. There are some types of forbearances that you don't even have to tell us why you can't make your payment....

Good Luck to ALL of us!

DJ

[Mrs. Bee]

One good thing for us right now is that they keep lowering the interest rates. Perfect timing for us because we're building a house. We can lock in our interest rate 60 days before our close date. Keeping our fingers crossed that the rates stay low for a while. On the downside, it seems like as the interest rates lower (yay!) my mutual funds are dropping (boo!) So everything that's going on right now is effecting us in good and bad ways. I try my best to focus on the good.

[Ian]

"the only thing we have to fear is fear itself" - Franklin D. Roosevelt

I believe this is very true. If you're job is going well, and things are fine for you, then don't worry. That's not to say you should ignore what's happening around you, but don't obsess about all the doom and gloom the media is feeding you.

Exactly.

What many people don't realize is that economic slowdowns are often self-fulfilling prophecies.

People get worried about the economy, so they spend less, which in turn further slows the economy, which spurs them to spend less, which slows the economy ... etc. etc. etc.

Honestly, are there things to worry about? Yes. Do they affect the average American that much? No. If you're in the financial biz, you may feel some short-term pain. Smaller raises, bonus cutbacks, etc. But this too shall pass. All the things the Fed is doing will help and, by this time next year, most of the pain will be behind us.

But if you're in any other industry, you probably have nothing to be concerned about. Spend. Buy things. Take your vacation. You'll actually be helping to stave off recession and further economic woes.

And really ... gas prices are kind of overblown to a degree. Unless you're driving a Hummer or are on some kind of razor thin budget, it shouldn't be causing much pain.

Think about it ... gas prices are like a buck a gallon higher than normal. So if you drive a car that gets like 20mpg (kinda low) and you have an average commute, you probably fill up maybe 4 or 5 times a month. If you have a 20 gallon tank it's maybe an extra $80 or $100 a month.

[Mrs. Bee]

Exactly.

What many people don't realize is that economic slowdowns are often self-fulfilling prophecies.

People get worried about the economy, so they spend less, which in turn further slows the economy, which spurs them to spend less, which slows the economy ... etc. etc. etc.

Honestly, are there things to worry about? Yes. Do they affect the average American that much? No. If you're in the financial biz, you may feel some short-term pain. Smaller raises, bonus cutbacks, etc. But this too shall pass. All the things the Fed is doing will help and, by this time next year, most of the pain will be behind us.

But if you're in any other industry, you probably have nothing to be concerned about. Spend. Buy things. Take your vacation. You'll actually be helping to stave off recession and further economic woes.

And really ... gas prices are kind of overblown to a degree. Unless you're driving a Hummer or are on some kind of razor thin budget, it shouldn't be causing much pain.

Think about it ... gas prices are like a buck a gallon higher than normal. So if you drive a car that gets like 20mpg (kinda low) and you have an average commute, you probably fill up maybe 4 or 5 times a month. If you have a 20 gallon tank it's maybe an extra $80 or $100 a month.

i wouldn't even be concerned at all about my mutual funds if i weren't going to be selling off some stuff in the coming months. eek.

i don't worry about gas prices. mainly because we don't drive much at all. i'm a housewife and my husband works from home. i fill up my car once, maybe twice a month and it's only about $30 each time (tops...sometimes it's a bit less.) My husbands car costs more to fill up but we use his car even less than we use mine.

And I agree. People need to go out and spend money. It's a good way to help the economy. I think a lot of people don't realize that by stopping their spending, they are only contributing to the problem. I'm not saying people should go out and spend money they don't have or that they should spend more than they normally wouldn't. I just think people need to continue spending the way they normally would.

[Quest4fun]

People get worried about the economy, so they spend less, which in turn further slows the economy, which spurs them to spend less, which slows the economy ... etc. etc. etc.

Ian is spot on.

We live in a consumer driven economy. If we stop consuming we slow our economy. Don't expect another depression. The big problem with the original stock market crash was that it didn't involve the same global market that existed today. We did most of our business among ourselves and much like today we spent more than we had but it was the joblessness and the run on the banks that brought about the depression. There were no crops to tend and people were not purchasing manufactured goods. Because of this people stopped consuming and, eek, the government, which ultimately sustains everything we depend on, was not collecting taxes to pay for schools, roads, law enforcement, etc.

If you really want to help out there are a few things you can do. Stop spending is NOT one of them.

You can spend smarter and keep debt to a lull. Just make sure you continue to spend. Take that trip, buy that car, and upgrade the stuff you own as long as you can do it with your own money or if you're able to pay off the debt that ensues.

It's not the end of the world. Keep money circulating. Your money belongs in a bank or invested properly in a house.

[SteveL]

I'm not saying people should go out and spend money they don't have

Heck, nobody does that better than the government.
But what really gets me are the politicians that then stand up and say they are "fiscal conservatives" or they believe in "fiscal responsibility".
As John Stossel says, "Gimme a break!"

[Dakota Rose]

DH and I own our own business. Winter has been incredibly bleak for us. People just don't do home projects in the winter. Now that spring is here, we're hopeful the business will pick up again. But I don't pay much attention to the media frenzy. They're always crying "the sky is falling" and making everything worse. I suppose we had so many years with a booming economy that we're due for a recession. I wish we could avoid it but it seems unavoidable.

[Quest4fun]

Heck, nobody does that better than the government.
But what really gets me are the politicians that then stand up and say they are "fiscal conservatives" or they believe in "fiscal responsibility".
As John Stossel says, "Gimme a break!"

It really doesn't matter who we vote for. Politicians get paid whether they win or lose. They certainly don't depend on their government paychecks and instead pay for their goodies with all of the sponsorship deals they get. I think any politician recieving external funding doesn't need a paycheck that we sign.

It all reminds me of that movie Idiocracy. Everything is driven by products like Brawndo Costco, and Carl's Jr. It's really good if you like satire. It's Mike Judge so don't expect to be blown away because it's not an Oscar contender.

[Jimenyfan]

Exactly.

What many people don't realize is that economic slowdowns are often self-fulfilling prophecies.

People get worried about the economy, so they spend less, which in turn further slows the economy, which spurs them to spend less, which slows the economy ... etc. etc. etc.

Honestly, are there things to worry about? Yes. Do they affect the average American that much? No. If you're in the financial biz, you may feel some short-term pain. Smaller raises, bonus cutbacks, etc. But this too shall pass. All the things the Fed is doing will help and, by this time next year, most of the pain will be behind us.

But if you're in any other industry, you probably have nothing to be concerned about. Spend. Buy things. Take your vacation. You'll actually be helping to stave off recession and further economic woes.

And really ... gas prices are kind of overblown to a degree. Unless you're driving a Hummer or are on some kind of razor thin budget, it shouldn't be causing much pain.

Think about it ... gas prices are like a buck a gallon higher than normal. So if you drive a car that gets like 20mpg (kinda low) and you have an average commute, you probably fill up maybe 4 or 5 times a month. If you have a 20 gallon tank it's maybe an extra $80 or $100 a month.

Your post opened my eyes to quite a few things I hadn't thought of before,you put my mind at ease on a few things. DH is in sales and his company and the companies that he sells to are pretty solid. I work part time for a minor league baseball team I feel pretty good about their stability.