Financial Fallacy

This morning's news echoes what many are questioning....why is the United States developing a financial fallacy with regard to its debt and just common sense management of govenment business?  I believe that the S&P 500 will lower our AAA credit rating. 
For many folks especially the military, this is discouraging news.  I have a difficult time turning on the tv or internet and read these bleak reminders about all the arguing in Washington DC.   Since I can recall back to the 1980s, it made sense to payoff the debt before it went on a credit spiral.  Today, we are experiencing a credit spiral. 

This wonderful capitalistic country is on the verge of something none of our American ancestors would want for us.  These seven points below outline general financial perspective as we encounter an economy that is teetering on the edge of a potential financial disaster.

1. Inflation - we will experience higher inflation than in previous years.  The purchasing power of the dollar is dismal in this type of economic environment.  For those in retirement or about to enter retirement, it means a lower quality of living since the cost of living standard (just to maintain present day cost of living) will be a challenge.  For military families, it means hardship because many are challenged financially.  Relocation with the military is expensive, more so than what people realize.  While there are items provided for, it's still a challenge for many to meet budgets.
2. Jobs - what jobs are being created today?  Manufacturing ventured overseas starting in the 1980s, and today there are fewer manufacturing jobs left in this country.  (Many work part-time  jobs with little to no benefits.)  For those 55+, the ability to get a job is on the decline as youth versus experience is the preference.  For those in the military, there are some cutbacks occurring that will force military families into civilian world and that may mean unemployment.  One couple has been struggling with employment for three years now, and it's a direct result of his military reserve status. 
3. Discouragement - if you shop local pawn shops and thrift stores, you will see a huge increase in traffic buying clothes, shoes and other basic necessities.  Pawn shops are packed full of merchandise such as guns, guitars, jewelry, tools, electronics and more simply because people need money to get food and provide shelter and transportation.  This increased level of activity spells out to me the increasing discouragement that we as a nation are enduring.
4. Money - many are working longer hours with increased job responsibilities for the same amount of pay (or less).  Benefits such as health insurance are changing and costs are rising.  More are having to pay out more in medical expenses than before.  It makes me rethink picking up the phone and calling the doctor's office before incurring that bill.  The bad fact is that I never know what kind of bill I am looking at with medical expenses even when it is for the same routine checkup.
5. Children - parents spend a lot on their children.  With an increase in cost of living, we may see a resurgence of family nights where folks play games or we may see more children left by themselves because of daycare costs as well as working longer hours.  Children consignment sales are very popular as you are able to beat certain thrift stores for good clothing.  Sports activities and other extracurricular activities may see less enrollment because let's face it, budgets are tight and people are tired of these overcompetitive parents yelling at the games.
6. Pets - the animal control centers are seeing an increase in loose pets as a direct result of the economy.  People move and leave the pet wandering to survive on their own.  Pet stores continue to see sales rise; however, more animals are being put to sleep.
7. Nursing home care and hospice - as the bulk of our US population enters the Golden years, it is raising concern for the quality of care.  The elderly are experiencing certain financial challenges. Nursing homes are claiming that elderly person's assets before allowing Medicare to kick-in and are even holding family members financially accountable going back seven years.  In addition to financial challenges, it is common for families of loved ones in nursing homes to encounter abuse of loved ones.  For example, a nurse aid contacted all family members and asked for money for their loved one.  She did not realize that the family she was conning was one full of attorneys, military officers and educated people who called her bluff.  While her jail time was next to nothing, she will try this again. 

While the outlook appears bleak and discourages those of us who are hardworking, exercise our right to vote as a U.S. Citizen, and are doing what's right (i.e. not into drugs or other bad behavior), it is important to understand this season of life that the United States faces.  Who knows, we may be revisiting the time of Ninevah where a higher power is exerting influence to get our attention.