Archive for the ‘The economy’ Category

Because of what is going on in the world, last week I did a teleclass with my Peace of Mind & Prosperity group on adapting to change. Our society is going through major shifts and people who are adept at changing are the ones who will thrive and prosper.

But for most people, any kind of change threatens their concept of who they are and their place in the world. Resistance to change is universal because of fear of the unknown and the unintended consequences of change.

If you want to thrive and prosper, adapting to change is a skill you will need to develop. Not changing means you’re going to stay stuck where you are and the positive momentum of the new economy will pass you by.

Here are some suggestions for learning how to make change a positive force in your life. Read the rest of this entry »

There’s an incredible disconnect between the movement of the stock market and the economic reality for much of the US population.

As I’m writing this, the headline on CNBC.com, just above the market chart, is “Stocks Gain 4% for Week Amid Earnings Optimism.” No doubt about it, the market has been going up, enabling those who are supposedly in the know to assure us that we are on the way to recovery.

At the same time, stories are dribbling out about the economic pressures faced by many people:

• There are over 1 million healthcare-related bankruptcies per year
• Over 47,000 people die each year in the US because they can’t afford health care
• 6.3 people are looking for every available job
• High level jobs are going unfilled because workers lack the necessary skills
• Foreclosure rates continue to rise in many areas
• Unregulated financial products are still in the pipeline
• States are cutting back on funding for education, safety, and other necessary services.

Read the rest of this entry »

One word that can sum up the current state of world affairs is uncertainty. No one really knows what’s going on and all of the old predictive models aren’t working.

For example, this week, an AP article mentioned that economists had expected a cutback in consumer debt by about $4 billion in July. Instead, there was a $21.6 billion drop. Totally unexpected. Good for consumers, bad for the economy which depends on spending.

People seem to be waiting and hoping that the economy will get back to “normal.”  Most people mean get back to what it was, and that just isn’t going to happen. Our economy depends on consumer spending and consumers are tapped out.

Also, because growth of wages leads to increased spending, that push for the economy has leveled off. With all of the job cuts and people finally learning to spend less and save more or pay down debt, no one knows for sure what will happen to our economy. Uncertainty prevails. If anyone predicts the future with certainty, don’t believe them. Read the rest of this entry »

I recently googled “new economy” looking to see what trends those in the know are seeing. One thing is for sure, our economic future is not going to be a repetition of the near past. The economy will slowly recover, but along with the recovery will be both a shift in priorities and a lot of downsizing.

In an article in the Christain Science Monitor, 10 ways the new economy will look different, value, savings, frugality, second-hand goods, and green jobs stand out as key ideas.

In a CNN series of short articles under the heading How to profit in the new economy  you find words such as downsizing, the rise of freelance nation, new regulations, and demise of the ‘ownership socieity.”

The whole mindset is changing as well, especially for Gen-Ys (16 to 19 year olds) who are our future. This group sees the importance of adopting changing the world as a primary value. They understand the need to work together for the common good, a shift from the rugged individualism that has caused some of our current societal ills. Read the rest of this entry »

When people feel uncomfortable — for any reason — they tend to keep things to themselves. Solopreneurs especially rarely share their financial pain or fear of the future with others.

In addition, with all of the positive-thinking propaganda that flies about these days, no one wants to admit that they aren’t super positive about what they expect for the future. Here again, people often hide their thoughts and feelings, often to the point of dropping out of group activities.

Consider these facts:
1. Keeping fears and concerns to yourself can be self-defeating. Connecting to trusted friends and allies and sharing from an authentic place allows you to feel less alone, which always helps to increase income. This doesn’t mean you have to tell all of your troubles, but you can be honest about having some concerns. .

2. If you share some of your thoughts with others who you trust, chances are that that either they share your concerns or they have a very different way of looking at the same situation and can help you see things from a more positive point of view. In either case, connecting to others allows you to feel less alone.

Why does connecting to others matter? Because feelings of aloneness stand behind most financial problems. From my point of view, you can’t run out of money, you can only run out of people because money is always attached to people. So the solution to a financial problem may seem to be more money, when in fact, it could well be more people. Read the rest of this entry »

The current financial crises is forcing many people to become more aware financially than ever before. Financial vagueness and poor financial management skills have caused serious problems on various levels and many are moving toward greater financial responsibility in order to recover–or survive–financially.

Difficult times such as we are in now, act as the catalyst for deep introspection and an examination of values. In order to move into financial stability, what matters has to be defined individually and used as a basis for future behaviors.

Clearly the uber-focus on money and it’s potential as a stimulus for personal happiness and stability has proven to be inadequate to keep society glued together. Money is necessary for our economic survival, but when money becomes the primary focus and goal of our lives, something is lost.

When asked about the financial crisis during a recent airing of Bill Moyers Journal on PBS, the Rev. Dr. Serene Jones, President of Union Theological Seminary said, “It’s a crisis of value. We have misplaced, in deep ways, the ruler that we use to measure what matters most in life. And it has become completely exhausted by monetary value.” Read the rest of this entry »

The hue and cry from people opposing the credit card reform bill is that banks are going to make it harder for consumers to get credit. Fees such as annual fees might be raised, reward points might be minimized, and approval for credit might be harder to attain.

“We are concerned that the Senate bill will have a dramatic impact on the ability of consumers, students and small businesses to obtain and use credit cards,” said Edward Yingling, president of the American Bankers Association.

Who is tight credit going to hurt? The economy won’t recover as quickly because consumers, upon whose backs the economy rests, will be spending less and carrying less debt. So tighter credit might curb spending–and perhaps raise feelings of deprivation–but it’s not going to hurt consumers.

Yes, they might have to learn to do with less–meaning that which they can afford. In the long run, the economy itself will be healthier because the danger of a credit card collapse will be lessened.

When our economy was deemed healthy, the actual financial position of many consumers was anything but. And the cause was often easy-to-obtain credit.

Tighter credit will mean slower growth for small businesses–and some larger ones too. This means the economy as a whole won’t grow as fast, but I wonder if, in the long run, it is better to have a stable economy than a fast-growing one.

What do you think?