Is a scary thing these days. Maybe I'm naive but when gas prices sky rocketed I didn't know what a domino effect it would have to the rest of the word. I'm talking with regard to businesses, jobs, our personal lives. Oh, I knew some things would be effected, but gosh, now it's getting down right scary! And it's just starting.
My hubby keeps telling me to watch it. Meaning, of course, my spending. I'm making good money but all of a sudden everything else has gone up to a ridiculous point. I used to make it to work and back on a tank of gas that ran $26, now it's closer to $50. Groceries for the two of us has jumped from $80 a week to around $120 for the same stuff. If anything we've cut back.
I've noticed small mom and pop businesses that have been around for like, ever, are closing their doors. And they're not re-locating! Big companies are laying off people. I have a friend who has worked at the same job for 6 years. The other day they let her go with $5000. Now you're thinking, well, she got something. That should carry her for a while. Okay, what about the health benefits she lost? This is a person who had a heart transplant 10 years ago and takes thousands of dollars worth of meds a month to stay alive. How is she going to survive?
Another friend works for a huge company that hands out generous bonus checks to their employees every month based on their productivity. Unfortunately it's not individual, which means they put everyone in the same pot. You might have one person who excels and another one who could care less. Their bonuses are based on the whole team. For the first time in her 5 years with the company she didn't get a bonus last month. She couldn't make her car payment. What's going to happen if next month is the same?
Houses aren't selling, now is the time to buy but people can't afford to buy. People who've fought to keep their credit good are going to be forced to make a decision that will ruin it in order to survive. Drop things they need like insurance, take the meds they need every other day instead of every day. Get rid of their beloved pets because they can't afford to feed them anymore. It sounds ludicrous but it's a fact becoming more apparent every day.
A sad fact that the economy will get worse before it gets better.