×

Recession will be coming soon

DEAR EDITOR:

Monopoly is a game that most have either played or heard of. There are a few socialistic lessons that never seem to be learned that Monopoly shows. One is that real-life economy is not a game, but has real consequences. Games are about winning and losing; life is about learning how to live beyond such primitive thinking ideals like just winners and losers.

In Monopoly, the game can go on for a long time with all the players that start, or for a short time. Eventually, someone either ends up with all the properties and money, while others are simply out of the game. In real-life economics, people are never really “out” of the game. They are still alive and still have needs to be met.

In Monopoly we can see where only a few people or just one person controls the game at some point. Monopoly doesn’t teach about the difference in macro and micro economics. The economy that people mostly see that gets claimed as being good or bad is based solely on macro numbers. The unemployment rate is often touted. The gross national product is as well.

The trouble is this type of reporting is deceiving. Just because unemployment is low doesn’t mean jobs are good paying or that people are OK financially if they have a job. The working poor have always known this, but in the past, jobs used to pay much better, relative to the cost of living. Today it’s been over 10 years since the federal minimum wage was raised; it is at $7.25 per hour. Having even two of these jobs is not enough today to live reasonably well.

Another lost statistic is that of sales for the year. We may see overall sales up, but if there are less people spending more, that is not good. One person can buy 10 different orders in 10 different places, making the amount of sales per purchase seem like more people are buying. The truth is otherwise. What this shows happening is like Monopoly when only a few are left in the game and the costs then go up due to competition between the buyers left and the money they have to spend. They can afford to price others out of the market again, which is not good for the economy.

We see the stock market climbing because those who have the money can make it go up by spending more. Eventually this will collapse — we have seen it happen over and over again with recessions and depressions.

Get ready, because it’s going to happen soon.

LEIF P. DAMSTOFT SR.

Warren

COMMENTS