With the FTX cryptocurrency having it's own Lehman Brothers moment as of late, it looks like the economy is getting ready to fall off a cliff. Along with inflation, fuel shortages, supply chain problems, etc., it now also looks like a lot of people will be losing their jobs. This is a catastrophe. How much is from the natural consequences of bad monetary policy, or the lockdowns, or even intentionally orchestrated, I can't say for sure. All I can say is based on the current economic model of the United States, the horizon is looking pretty bleak.
So, I would say it's high time for a new and expanded economic model. And what I'm going to suggest here is not really even a newly created economic model per se, but more of an expanded awareness of economics, the real economy, not just the GDP model, and how people can leverage that expanded awareness to their benefit, and ultimately better secure themselves and their families.
So, the GDP model, as most people already know, is you get a job, you earn a paycheck. You report those earnings to the IRS and you pay your taxes every year. Or maybe you're a small business owner. Or, maybe you're an investor. Whatever your income stream, it's under the GDP system. You either trade your time and skills for a paycheck, or a product or service in exchange for money, (or sometimes barter for advertising or other exchanges), or you get an increase in your portfolio or dividends from your investments. And what do people do with those earnings? They spend them, or sometimes re-invest them. On what? Well, they spend their earnings or income in the marketplace, on things such as housing, food, clothing, real estate, cars, health care, child care, education, entertainment, etc. This all works out pretty great for the vast majority of people, as long as they have a sufficient household income. But, what happens when they don't? Well, that depends. If they are completely independent and alone, they might fall through the cracks. They could end up living in their car. They could end up living on the street. They might keep their housing, but go hungry, and without utilities. Or without medical care or medicine.
This is a situation that can become a downward spiral. People often feel ashamed of their economic situation when they fall on hard times. They will try to hide it from their family and friends. They don't want to pay the social status penalty and be looked down upon and rejected. Their sense of worth as a human being is tied to their socio-economic status. So, then the person/family ends up with two major problems to solve- 1, their economic situation, and 2, their complete loss of self-esteem and sense of self -worth. Their loss of economic status may indeed contribute to them losing their social capital, and I don't just mean their business networks, but I also mean their intimate social relationships with family and friends where they normally would receive the on-going emotional support they need as human beings to be able to thrive and have emotional/mental well-being. This might be caused by being rejected by others, or it might be caused by the person withdrawing and hiding out of a sense of shame, but either way, this loss of social capital is equally devastating to them as their loss of economic capital. And it couldn't happen at a worse time.
So, the first order of business is for everyone to swallow their pride and admit that things are pretty rocky right now, and that people who have been responsible and have been working will not be socially rejected, and they will not hide out of a sense of shame. Losing your job through no fault of your own is not the same as being a lazy bum. Do not give into the temptation of feeling sorry for yourself and simply give up. You must fight. Sometimes I think when people fall on hard times, they can develop the identity of a victim, and then close their minds to any other possibilities in their lives, because they become so invested in their new, chosen identity. Don't fall into that trap. If you have to put your business suit on every day to remind yourself of who you really are, even if you don't have a job to go to that day, do it, because this will do more to keep yourself on track than you can ever imagine. There is scientific research to back this up. It works. You must meditate every day on who you are, which is NOT defined by your temporary financial situation.
The second order of business is to understand what can actually improve your situation and your status. Think about what other people value, without the political correctness. People value other people who are attractive, kind, hardworking, honest, helpful, competent, respectful, healthy, talented, funny, and trustworthy. Be those things. Be the kind of person you would like to have around you. It will do a lot for your self-esteem. And it will do wonders for your social status, and your social capital. I can't tell you how many heartbreaking videos on YouTube I've watched of single women who are struggling financially, and who have given up, on themselves. You are a woman in the community. You are a mother. You are the head of your household. You are responsible for your family's status. Smoking, drinking, not being fit and healthy, is doing nothing to help your finances or your family's image. I'm not judging here, I've had my own weight struggles. But, the political correctness of saying a woman's image doesn't matter is not helping women AT ALL. You image matters a lot. Even to your children. So, do it for them if you can't feel motivated to do it for yourself.
The third order of business is to evaluate your personal finance skills. If you have a phone and access to the internet, there are a ton of free learning resources on personal finance, budgeting, and wealth accumulation and wealth management. I won't bother with addressing those items in this post, but this skill set is a mandatory foundation for financial security.
The fourth order of business is to understand that ultimately, YOU are responsible for your self, your family, your extended family, and your community. Do not sit around waiting for a government agency, a non-profit organization, a church, etc. to save you. By the time this all comes crashing down, they won't be able to even if they wanted to. So, what do you do? You start organizing with your family now. Different families and different communities will probably have to employ different creative strategies to secure what they need. But the sooner you get going on it the better. Everyone needs to learn how to make at least one type of craft. Research who in your families and communities are already craftspeople and maybe start doing something that isn't already being produced in your local area. There may come a time when your and your family's ability to wear things like clothes and shoes will be dependent upon your ability to make them.
Research online for free classes and information on herbalism, optimal human diets, fitness, free online college courses, survival skills, food production, hunting and gathering, and community organization strategies. We may have to re-build everything from the ground up. And it's going to take all of us to do it. Sitting around drinking alcohol, doing drugs, robbing others, etc, is NOT going to do yourself or anyone else any good. Assume that everything is going to fall apart and plan accordingly. If it doesn't great, but if it does, at least you'll be prepared. I'm here as a resource for knowledge and community support and I want to help in any way I can. Fortitude and faith is what is going to be required of all us.
