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Avoiding the Worst
Their has been an ongoing debate about the oil prices and where they have been heading lately and I went out and tried to get some information about who is really right about the current economic situation.
There are really 2 camps. One camp really falls under the alarmist point of view and the other camp is a little more optimistic. In my opinion what I really is a normal economic cycle that will eventually pass.
If any of you get the time there is an excellent article in Fortune Magazine Stagflation is Back: Here’s How to Beat It. This is probably one of the better articles on what is really happening with the economy. Anyway it points out some very interesting events that are currently happening that coincided with the things that happened in the 70’s. Unpopular War’s: Vietnam and now Iraq. Unpopular Presidents Nixon, Bush. The Oil markets where in flux then and now. Food prices soared then and are eating into our wallets now. So there are a lot of things in common. For those that are the alarmists don’t worry you would have fit in back in the 70’s
I tend to be more of an optimist. Yes this is a cycle of the economy that takes place every so often. The article did point out it does take some time to recover from these periods of stagflation (combination of inflation and no GDP growth.) the last time around it did take 15 years to come out of it. That is a little scary however not insurmountable. The interesting thing about when things get tight is we do 2 things as a society.
1. We cut back as much as we can. We cut out unnecessary spending and get a little more trim financially.
2. We invent stuff. In the 70’s when we went through some of the same food storages we are going through today. We come up with drought resistant seed and seed that has higher yield rates.
The fact is that we are not running out of resources on this planet, but we do need to be a little better about using about what we have and coming up with more inventive ways for fuel, this is what drives the planet, food sources, and many of the other things that drive this planet.
Right now we spend hundreds of billions of dollars on the Iraq war and only 3 billion on energy research now you tell me that sounds a little lopsided.
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July 30th, 2008 at 4:01 pmI believe everything happens in cycles…and this is by no means any different.
It\’s how we handle it that will determine how quickly we get out from between this rock and a hard place!
I think, in everything, humanity needs to be a little smarter, slower to act rashly, and give more thought and care to the things we are doing that impact our planet, including everyone in it!
I believe people are taking steps to counteract our issues of inflation, as we must, and I think some very inventive ideas are coming about…We just need more of it…
In our privileged countries, we need to be more aware of our wasteful acts and activities! We must be more appreciative of our way of life…
Thank you for this great submission to the “Dessert Course” of the Blog Carnival!
Kimberly Edwards
July 31st, 2008 at 7:37 pmKimberly-Edwards.com