Mistrusters, Veterans & the booming Hippy-Yuppy
My father was born in 1913. When he was attempting to establish himself, the entire economy collapsed. If any of you were close to elders that lived through that era, one thing you should agree with is that those people had a different opinion, and mistrust of the U.S. banking system. Throughout my life, as I began to take an active roll in my father’s finances, I discovered he did not have a bank account. All of his money was kept in a safe in the floor of his closet. He bought his house in 1948 and paid it off by 1970.
The next generation was being called to duty in World War II. This pulled us out of the depression as a shrinking Gross Domestic Product (National Income) turned into a rapidly increasing one. Government spending on the war fueled the rising GDP. Women replaced men in the work force. After the war, women’s unwillingness to return home from the work force began the popularity of the two income household. This continued the high pace of GDP growth. The 1950’s was a great time for the U.S. economically, due to the increased income as well as the lowest inflationary pressure of any decade of that century. It was the only decade of no double digit inflation (or deflation as the 1930’s).
So the country now was comprised of two generations, the first of which were the mis-trusters, and the second were the veterans who were busy creating the third generation of this era, the baby-boomers. The massive increase in income and family manifested a sense of financial responsibility and stability. This generation was the first consumers of many new innovations and electronic household modernizations. Yet they were still conservative because they were raised by the mistrusters. In the sixties and seventies this generation of mature adults began the popular mortgage burning parties. Many families were completely paying off their mortgage loans and held their homes free and clear. Their was a sense of pride in actually holding the free and clear deed to the American dream.
The baby-boomer generation was the worst of the three generations in their narcissistic erratic persona. Their rebellion in the 60’s and 70’s began the deterioration of American Family value system. In 1970 7% of U.S. children were raised in a single parent home. In 2008, 40% of children live in single parent homes. After the free love of the 70’s, many of those who did get married begin to divorce frequently in the 1980’s.
The Hippy/yuppies of the 80’s had no mistrust of the banking system because they were too far removed from listening to elders. They had rebelled against the Government as young adults in the 70’s, broke their families apart in the 80’s and only had the American Corporation to call “daddy” by the 90’s. So when banks advertised, refinance that house that you bought with the proceeds of your parent’s free-and-clear home, they not only refinanced, but they opened a second line of credit.
See, Corporations knew that as long as the average American homeowner held 50% to 100% of paid-off equity in their home, that is the equivalent of sharing the wealth with the common folk. They viewed this high equity holding as untapped revenue. So by encouraging refinancing they could convince Americans to give up their “actual” wealth for the sake of spending to impress their narcissistic complexities.
The greater debt a society holds, the harder the work-force works. Opposed to the better the savings and investing habits a society has, the higher potential for competition for the current businesses. A corporation would rather have their key employees in debt and enslaved to the steady income, as opposed to being well capitalized to leave and start a competing firm. This is why corporations continue to grow larger and more powerful.
This is how we turned away from being a saving nation to a consumer nation as our middle class disappears. Now we are so individualistic. We don’t trust our Government; religious institutions; banking system; our corporate employers; not even our families (spouse, parents or children) to not become a burden on our pursuit of material superficial justification and false sense of self-worth.
Now we are in the middle of an economic crisis that has unemployment in double digits and people out of work for years. The Republicans fell asleep at the wheel as President Bush allowed our domestic policy steer itself into a ditch as he kept his eye on world oil conquest. So much so, that the Democrats were able to get a Black man in the office of a racist, classist, self serving country. As the Republicans and Independents woke up, they formed groups such as the Tea Party to take back the power from a perceived left wing ideology that would force rich people to pay their fair share of the benefits of the American Dream.
Yet the only thing that will create economic improvement is consumer spending. This spending is what oils our American economic machine. So instead of spending 70% of our income, as we should, we are encouraged by businesses and the government to spend 100% of our income to stimulate the economy. We are reluctant because we are not sure if our own jobs are secure. The irony is that this 100% spend mentality is what created the mess in the first place. The long term solution to not only an improved economy, but also a health household finance philosophy of living within your means and saving for the inevitable rainy day is to allow a higher natural rate (average) of unemployment while keeping unemployment insurance at an extended duration. This is the model of the mature democracy within England. The problem with this solution is the constant bleeding of jobs to foreign countries as well as the downward bidding of wages due to immigration. If we had a superior product in the U.S. produced by employees that earned a decent salary to feed their families with products made in the U.S., we could sustain.
Yet everyone is the complainant as well as the defendant. They don’t earn enough, save enough and they don’t buy U.S. enough. All the while, CEO’s union bust, employ illegal immigrants and ship jobs out to the benefit of their bonus and their shareholders who happen to be the American people.
Wow, what will the next generation be like? So far we are not educating them properly in school, and we are not instilling drive, motivation and innovation at home.
Mistrusters
Veterans
Boomer Hippy
Yuppy
Generation “X”
Generation “Hu, What?”
very well said.
The big question remains, what are the generations X and Y going to do now that the economy is shrinking and opportunities are being restricted? Are we going to learn from history, or are we going to continue to be recklessly selfish and naive?
We can hope to learn from each of the past generations, be mistrusting, save and accumulate real wealth, rebel against the 5% of the population that controls us, yet replace their system with one that is not individualistic. But use technology in this information age to strive for an economic and social system that is humane and sustainable.
True that!
Everything you spoke of was right on point. My great grandfather and his fathers generation grew up in a time where being fiscally conservative wasn’t just the norm but it was a must. People didn’t go out and spend their money on items them didn’t need or vehicles that did fulfill a purpose for their needs. Like you said it was the generation baby-boomers and the free love and devaluing of our families and lack of conservative that began the spiral down. When we look around today, people are only concerned with how nice their house is, how cool or expensive their vehicle is, it’s the is mine better than yours complex. All the while they’re in debt up to their ears and have no cushion in the bank in case times get tough, like they are now. Then when things do go bad, people want to blame the government for their misfortunes instead of taking responsibility for their own actions. There are a lot more dynamics to this but this was all I had time to express.
I myself would call the next generation the generation Freeloading crybabies.
Everything you spoke about is true. Back then in the 1940′s and 50′s people wanted to keep their money in a safe box. They didnt trust in banks and would rather have their money somewhere where they knew they could see it. People had more respect for each other and wanted to live happy within their means. People were conservative , saved their money for a family and their was family unity. All that changed after the baby boomers were born, they felt they can do anything they wanted, more drugs spread out within the country , spending money on anything and didnt care about job security or the future. When they had children, they either left them at grandmas or didnt pay attention to them. Now their kids grew up without knowing anything on economics, how to be conservative or grow up with that family love. The economy is awful right now, everyone wants more and more money , but want a easy job. Everyone is in debt and when they’re out in the streets they pretend they are big shots. Many with name brand purses, cars and homes. All going to forclosure, because they spend more than what they earn. The next generation, who knows what will happen. If history keeps on repeating its self, hopefully its for a good reason, where people with be more conservative of their actions and how they spend their money.
Ive asked many people what they think our future generations will be like. I ask this question to many people on a weekly basis. What will this world be like when I am old and grey? Will I even be able to collect my social security? It seems as though every year, the age to be eligable rises higher and higher. After watching Obama speek last week, I hope congress passes the bill. It seems as though the American Jobs Act could help our economy. We might as well try something, it is better than doing nothing at all. Obama mentioned increasing exports from U.S., as well as many oppertunities for jobs and rebuilding America. At this point I feel like it is a waiting game to see if the bill will be passed.
On a less economical note, it saddens me to know that the value of family has rapidly decreased over generations. Very dissapointing.
Reading your article was very eye opening and it gives the mind alot to think about.
Mr Harris, It was very interesting to read your blog today. Just yesterday I had a customer come into my shop and mention how with the economy so slow do I continue to be so busy? I explained to him that I have had to do price comparisons on other shops and make my prices the most reasonable. He then continued to ask me, “So what do you do with all your money”? I told him I keep it in the bank and in return he said that I need to be more cautious and that I need to buy gold with it and hide it in a safe place. This coming from a much elderly and financially stable man I am now doing research on my options. I do know that I dont want the day to come that I walk into a bank and find out that the economy has crashed and they dont have my money, then how would I provide the necessities for my family….You also spoke of consumer spending being the main way to improve the economy.This may be true but the American people are too afraid to fork over the cash not being certain that they have job security. We never know if the job we currently have will be taken away and handed over to a non-American.
Hi
I agree with you,the unions are ruining our country. They are job killers,it started off a good thing but has end up being a disaster. Perfect example is the post office,they are paying employees that haven’t worked for years. The retirement plan is spending money that could be used to employ other workers. This is the one of the reason why our kids won’t have any jobs,and the public education system are horrible. Teachers are part of the union and they have job security,some are inadequate. We are living way beyond our means and we don’t have security for the future which brings a sense of uncertainty.And now they are threatning social security,yes we are very worried. Government is making short term solutions for long term problems. Its a mess to say the least.
This is astark and very real outlook on American economics and how almost anybody or anything can be misconstrued and twisted when it comes to money. it’s kind of discouraging.
these are true facts, according to my grandparents. They said that back in the50′s it wasn’t about doing better than the next or keeping up with other people. it was about taking care of your family and saving money. My grandparents didnt have bank accounts till 2005 and my granpa says he still has a safe where he keeps most of this important things and money.
And I thought I was a pragmatist. True, all very true. My grandparents still keep their money locked up in an undisclosed location and I can’t tell you the time they asked me to take them to the bank. My parents are firm believers in saving for a rainy day and I have just recently learned to live beyond pay check to paycheck. Our country is a wreck. We need to reflect, reshape and rethink where we are going and how we are going to get there. We are also a more dramatic group of individuals. Everything is heightened by our sense of self and well being. We do not like to be encroached upon and sometimes working hard does just that to our social calendars. We need to figure out what we are willing to give up in order to get better. And that is going to be the most difficult question for anyone of us to ask.
I was just talking about some of this topic with my political science teacher.
I’m 25 and use to live in West Hollywood and working at a really great job, also facebooking/myspacing all day, partying all night, didn’t finish school, and never read the news. All the sudden I was laid off and stuck without a job, felt stuck on unemployment, so I decided to go back to school. Now I’m learning real life experiences, and learning from the mistakes that my peers, and elders have made. I have family friends in their 40-60′s and my friends in their 20′s who are in some serious debt from credit cards, and taking out second mortgages on their homes, also buying extra property they couldn’t afford. I’ve seen 4 people go into foreclosure, and 2 people claim bankruptcy. When I was living my life earlier I was spending too much money, and not saving. When I was laid off I had nothing expect unemployment. It’s important to save first then spend; I’ve found out. I realized I need an education and at least a BA to succeed in this world. Sadly I still see a lot of my friends not going to school and thinking they’re going to become CELEBRITIES in Hollywood. A celebrity dream is NOT realistic and they’re spending way beyond their means with their credit cards. It’s all about social media, partying, and spending with some of my friends. I can’t live that way anymore; I need to make some MONEY and live real life. Hopefully the younger generation and my generation will learn from the mistakes of our elders and peers; learn from the positives and make this economy better. I read this article recently that stated, “40 CENTS OF EVERY DOLLAR SPENT IS BORROWED”.
“Wow, what will the next generation be like? So far we are not educating them properly in school, and we are not instilling drive, motivation and innovation at home.” as i was reading the blog, this same question pondered my brain. How is the next generation really going to turn out? The generation where my kids and I are going to grow apart of its statistics. Its amazing in fact that my mother and father experienced the “baby boom” generation but yet im still blinded by it all. meaning i never realized not just my mother but everyone else in that generation were experincing the divorces and single parenting life. And that goes for my grandparents too.
I concur the baby boomer generation was the worst of the three generations. Their rebellion in the 60s and 70s continued to the 21st Century. According to CBS/New York Times poll, the average Tea Party follower is a white, well educated, well paid baby boomer. The Tea Party movement grew from opposition to the progressive public policies coming out of the Obama White House. They opposed to big government yet they are big backers of entitlement programs such Social Security and Medicare–the biggest domestic programs. They complain about lack of jobs but they oppose to President Obama’s increase spending. Their disapproval of the Obama White House is deeper than the deficit and the spending; it’s more like skin deep. The US had a surplus when George Bush took office and a deficit during and after his time in office. Where was the Tea Party movement then? Tea Party members and followers are obstructing our government and not contributing to it, they have no concept of our government.
The problem goes beyond spending or saving – no matter what the average consumer does with their money, it’s being hoarded by the upper 1%. Spending at maximum capacity by the middle and lower class will stabilize the economy, but speed up the accumulation of wealth by the elite and enlarge the wealth gap. Saving will drive inflation and unemployment. The poor and middle class no longer have enough of the capital to sustain the economy themselves. Until the government restores the estate tax and brings the capital gains tax and corporate tax rates back where they belong, I don’t see how anything will restore the economy. Then again, that’s not really the goal of the right wing in the first place. There’s a reason debtor’s prison is making a comeback…
http://www.dailyfinance.com/2010/07/15/americas-new-debtor-prison-jail-time-being-given-to-those-who/
…and child labor laws are under attack.
http://blog.aflcio.org/2011/01/14/senator-claims-u-s-child-labor-laws-unconstitutional/
As an aside, despite their rhetoric, I really don’t consider the Tea Party to be the “enemy” of progress. At its core, the complaints of the Tea Party are the same as those on the left – they feel powerless and unrepresented, and they want a voice in their government.
The difference is how they respond, and what they see as a solution to the problem. Rather than trust “We the People” and a government that has at least some accountability, they’ve chosen to retreat from democracy. That’s misguided.
But demonizing them does neither side any favors. If you look at these rallies, most of the people aren’t rich. They’re poor, ignorant, and largely rural. They’re proxies in a culture war that’s been concocted by a think tank to pit one group of poor people against another. Progressives those people to come to their senses and get on board.
This was a very quick and thorough source of history that thought me a lot about the American economy and why the people are how they are. I’ve only been here three years and the main thing I see and really dislike about the people here, is that so many people only seem to measure themselves and others in how much money they have and there appearances with, cars, house and clothes and how much they can floss and party. It has made it so easy for me to predict peoples behavior that I find them simple mindedness funny and sad. (let me put in here that not everyone I know here is like this, and I like a lot about this country.) Dog eat dog is the name of the game here, and unfortunately it is that game of greed and selfishness why the country is where it is at. The hardest thing about it now is the majority of people are like that, and have been like that for a long time, and to dig the country out of a 14 trillion dollar debt, that will have to change. And just as much as it would be hard to have an old man change his life long ways, that is how hard it will be for America to change back to ways that can rebuild this country. The most is going to happen is they find some way to patch up the situation and just keep going again. whatever happens, they just need to do it fast.
Also, I think the Government need to swallow its pride right about now and grant immigrants some good rights in this country. they are not gonna get rid of those who are here any time soon, so the best they can do is try to have them contribute in the economy. I pay taxes because I am here legally. but if I was not, I would be finding some way to make money and the government would most likely not see a dime of it. Plus take more interest in the well being of Mexico, Because Mexico is like burning house sitting right next to the US and threatening to torch it as well.
As I read your blog, worry crept in. And by the time I finished reading it, that worry turned into a type of concern that was borderline scary. You see, to be honest, I don’t know much about the stability, or rather, instability of the economy of our country today. Although some aspects of economics and civics are quite interesting, it has never been my forte. I’ve always stuck to math and the sciences. I felt that knowing the “basics” of our political government and economics would be enough. It has just recently dawned on me that it’s not. This course has continually been opening my eyes to what I’ve not paid much attention to before. You pointed out the characteristics and the consequential actions of each generation and how they have impacted today’s lifestyle and economy. It’s sad that the deterioration of family values and soaring divorce rates were caused by the baby-boomers. It’s also disconcerting to know that the only way to improve the economy is through 100% consumer spending. Is there a way that we can somehow adopt the fiscal attitude of the mistrusters? History has happened already, but can’t we just learn from the mistrusters to be more fiscally responsible in order to improve the state our country and economy?
This was a very interesting blog. It gave me a sense of awareness to save more and watch out for the next wave of corporation advertisement to spend more and become a debt slave. From the looks of things the next generation will be divided into two, one thats been raised off celebrity TV reality shows and another by the internet.
This was a great article that helped breakdown the thoughts of the different generations throughout our history. I never thought about the generations that were around for the Great Depression and their feelings about the American banking system. I did know about the war and the spike in the economy and the veterans coming back to a more prosperous time. That made it the best possible time to attain the American dream of owning your own home. Our generation has fallen victim to the “buy the newest thing” (even when we cannot afford it) mentalities that has been pushed on us by the large corporations. I think this is one of the problems that have been our economic downfall lately. I liked the idea that the more debt that society holds the harder it works. This is a good way to keep people doing what you want them to do, is to always keep them in debt.