Money, They’ll Never Learn
It’s interesting to witness the times we’re living in. Literally none of this has happened in the recent past. Millions are unemployed and the government’s been forced to supply stimulus to save the economy.
The Fed has taken action to ensure the stock market remains stable and inflation is taking hold. However, the average person has no idea what may or may not happen.
The common man, as we’ll call it, only cares about the President, the weekend, and why gas prices are going up. They’re not focused on rising lumber costs and the impact on housing, or the potential for rampant inflation.
As the title of this articles states, in the end, they will never learn.
It’s frustrating to see how dumb people are about general economics and money. I’m not talking about anything specific, rather a simply conversation about how our economy is being impacted by COIVD and the actions of the Fed.
I saw an individual post on social media that gas prices were going up because President Biden took office. Sure, the President may have a small impact, but it’s comments like those that get me going.
They didn’t take the time to think that there was a snow storm in the south that disrupted distributions. They didn’t take the time to see oil prices rising or research the latest happenings with OPEC. They don’t understand that inflation is becoming real and that’ll naturally push commodity prices higher.
Put simply, it’s ignorance.
Unfortunately in the United States, finance is barely taught in school and I think that’s on purpose. The common man asks how large is the payment rather than what’s the interest. The common man sees rising food costs and gets pissed at the President. The common man see mortgages rates rising but doesn’t understand the underlying cause.
If you tell anyone their payment is X, and it’s within their ability to pay, they will sign on the dotted line.
One of my stronger feelings is there needs to be a better understanding of general finance in America. People need to know interest and how it impacts their bottom line. People need to understand compounding and how investing $20 a month is significantly better than zero.
We live in the now and people will stop at nothing to get what they want right now.
As the battel against COVID progresses, people will return to their jobs or find new ones. Just like 2008, people will slowly forget and return to their old ways of spending and borrowing. Sure, a large group will have learned something during these hard times, but the majority will have not.
Once consumer spending picks up and the Fed sees healthy job creation, they’re likely to begin raising rates. Combined with the amount of money being created, there is a real chance that inflation takes hold, pushing the cost of living higher and devaluing the U.S. Dollar.
A bit more, student loan payments will begin again after nearly 2 years on pause. Evictions will take place in mass. Unemployment protections will cease.
Circling back to my example, people will complain about higher gas prices, blaming a President. And as my title states, people will simply never learn.
