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What is the cause of our current economic situation? Why are such large numbers of people out of work? Why do respected banks require federal bailouts? Why do so many people need debt relief? Part of the problem is the normal ebb and flow of the economy. But part of it isn’t. I’m not an economist, but I have my opinions. It started at the top and has oozed down to the little people who need debt relief programs.

From my point of view, it seems that one of the beginning causes was our love affair with large houses. Builders love to build them, and families love to buy them. Modern houses have been growing and growing and growing. And as prices went up, people have continued to purchase. Then house value dropped, homeowners couldn’t pay and couldn’t sell. Foreclosures ensued. This caused the problems that mortgage industry has suffered.

What we need are housing developers who are willing to build more practical homes. Consider the homes built in the 1950s after the Second World War. Builders put up block after block of three bedroom ranch houses. These houses had one bathroom. The dining room was an alcove next to the living room. There was no great room and small closets. But these families raising their little Baby Boomers were cozy and happy. At this point, these houses are fifty years old. If developers would build similar houses now (with maybe an extra bathroom), people looking for a simpler way of life would surely buy.

The second origin of the downturn is the media. Journalists don’t want to lead the news with, “Life is good; the nation is prospering.” If this is the way things are, they don’t discuss it. So the listeners, watchers, and readers get it into their mind that things are bad. Then the situation begins to snowball. The news people report that consumer confidence is down. The listeners then become afraid to buy. Sales go down. More snowballing. With sales down, employees are laid off. More snowballing. At the first hint of problems, every news outlet is trumpeting it. The media want to brag about how true their predictions are, but they are setting up self-fulfilling prophecies.

So now here we are. Unemployment is high and debt is sky-rocketing. What’s the solution? If you are becoming overwhelmed by your debt and are beginning to fall behind, your first step may be to contact a debt relief service. Research more than one organization so that you can choose the one with the best reputation and that will cost you the least amount of money. If the situation begins to look as if you can never dig your way out, you may need to consider bankruptcy. Bankruptcy is a drastic step that hurts your credit for many years, but, after careful consideration, you may decide that this is the best step to take.

What can we working stiffs do to raise ourselves out of this slump? First, substitute hope for fear. Live your life as you always have, adding in a spoonful of prudence. Then figure out how you can be entrepreneurial. In the end, it is the entrepreneurs who will pull us out of this downturn.

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