Why are people so pessimistic about their economic future?

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We have had actual recessions and depressions several times in the past and we’ve always roared back. History should give us a good feeling about current conditions. So, why the long faces. Anyone remember the loan rates for houses in 1980? 19% for a 1st mortgage! Loan rates now are only 5.75%. Anyone remember long gas lines in the 1970’s and only being allowed to buy gas on alternate days? How about the collapse of the real estate market in the early 90’s. What about the huge unemployment rates at other times in our recent history. It is only 5.1% now. The military losses over 7 years of war is almost the same as the first few days of WWII. The U.S. has been hated by underperforming countries since 1948. Nothing new there. At one time, for decades, we were a finger-push away from nuclear obliteration. There are many examples of real crises. We’ve always thought it was the end of the world and we always bounced back. So, if you feel depressed about our economy, why?

5 Comments
  1. Reply
    Rusty Nail
    February 21, 2011 at 8:01 am

    Don’t ya’ just love the fear-mongering media shoving this constant barrage of crap down our throats?

  2. Reply
    Brent S
    February 21, 2011 at 8:41 am

    Because that is what half of the political atmosphere is preaching in this country. To make matters worse the media follows suit on this.

    Now, don’t get me wrong, the economy is nothing like it was three years ago, and I am not depressed about it, just very reserved. For instance, I need a new car, but I am nervous about buying one for fear of putting myself back in the whole I was in eight years ago. My job is fairly secure, and so is my company, but I also want to play it safe…

    That is more where I stand. I am not depressed about it, but leaning more towards caution.

  3. Reply
    harbqll
    February 21, 2011 at 9:24 am

    1) Because people always think that the times they live in are the worst ever

    2) Because no one has even a half-decent knowledge of either history or economics anymore

    3) Because most people get their news and opinions from the mainstream media, which has become the propaganda arm of the DNC

    We and everyone we know are doing great! My wife and I have paid off both our student loans and our mortgage in the last 4 years. If this is a recession, keep it coming!

  4. Reply
    Jim
    February 21, 2011 at 9:59 am

    Because panic and irrational behavior is a natural response for humans. It’s the corner stone of behavioral economics. We consistently make choices that are against traditional economic theory, because traditional economic theory makes the assumption that people are rational which is far from the truth.

    Case in point, people see stocks plummeting and gold skyrocketing. Being fearful that their stocks will lose value and they will miss out on something good people dump stocks and by gold which completely goes against the ‘buy low, sell high’ principle.

    I hear everything you are saying, you are preaching to the choir. I’m looking at all of these people that think we are heading for the next great depression, dumping their stocks and buying gold. Meanwhile I’m completely laughing myself silly while I’m putting more money into the stock market so that down the road when things go back up I’ll benefit big from it.

  5. Reply
    meg
    February 21, 2011 at 10:58 am

    Because it is election season, so it is a topic in campaigns and the effect of trade and the 20% decline in the dollar is not understood

    Because of the sudden run up in gas and food prices which are the items we buy most often

    Because the Growth period since the last recession did not produce very much in the way of wage increases if any and they fear that their standard of living will fall,

    That is it is not just the possibility of recession. People did not start out very happy with the economy but assumed things would get better over the next several years, so when the economy begin to fail it looked worse than did the recession of 2001 which came after a 4 year boom.

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