Since we are in the midst of a recession with horrible unemployment, high foreclosures, and lower consumer spending, it’s a good thing to look at what happened. This will help us avoid future recessions. Do I believe that government will honestly look at it? No. They will cast blame in order to gain the upper hand politically. That’s why we will see future recessions and more state control.
As I see it, the major problems occurred when the natural order of things was thrown out of whack. People were becoming millionaires overnight. Home loans were being handed out to people with no down payment and little income. These are just two examples.
Why isn’t this the natural order of things? In order to gain success in this country you need to do a number of things. Putting aside people who win the lottery, you need to: work hard, become educated in your field, and make good decisions. The basic underlying theme is that if you do something better than anyone else, you will gain monetary success and professional success: Tiger Woods, Michael Jordan, Stephen King, Bill Gates and the list goes on. All of the above share the same traits: hard work, education in their field, and making good decisions. If you skip one of these steps you will either not make it or will make it and only be on top for a short time until you make a bad decision or people figure out that you are full of beans. Doing these things is no guarantee of anything, but you can almost be guaranteed of not making it if you don’t do these things.
A few good examples are marriage and farming. Steven Covey talks about farming and how you will only get crops if you follow the necessary steps to produce crops. The same can be said for marriage. You will only have a good marriage if you do certain things. The confines of marriage aren’t as strict as farming, but the idea is the same. You need: fidelity, attraction, love, and fun for a working marriage.
One of the reasons we are in the recession today is that the United States government wants to ignore the natural progression of things. In order to buy a home, you need a certain income level and a certain amount of money to put down. That’s the natural order of things. With those 2 needs filled you should be able to survive and maintain your mortgage. The United States government skipped that and said, “No, you need to make loans available to people who don’t fit the criteria.” That’s trying to game the system. The system has now said, “You are full of beans” and it’s crashed.
The same can be said for the instant millionaire. This is not actually a fault of government. But the instant millionaire lies to people and tells them that it should be quick. People see all these 30 somethings making big bucks and start to believe they can trick the system, so they skip the hard work and the education and the choices. Then they get mad at the system for not making them a millionaire and get angry at those who do have financial success.
America needs to get back to what works. The natural order of things is the only thing that works. If you see the government promising something that skips necessary steps in the natural order of things, get ready for disaster.
You can do it on your own right now. Don’t wait for the government to get the clue. They probably won’t. Work hard at whatever you are doing. Be the best you can be at it. Take it seriously and get invested in the outcome. Get educated in what you want to do. Make good decisions in life. The more you do this, the more others will follow.