American Standard of Living Permanently Changed
By Tommy Leung on February 17th, 2009 in Economics, News
The Austrian School of Economics foresaw this years ago. The standard of living for Americans is going to be much lower for many years to come because of the government created financial boom. The financial stimuli that the government is throwing at the problem is only going to make our standard of living that much worse.
“The average American used to be able to borrow to buy a home, send their kids to a good school [and] buy a car,” Davidowitz says. “A lot of that is gone.” To paraphrase Ron Paul, an economy that lives above its means is destined to live below its means. The price of homes and schools were way too high-price of schools are still way too high. Economic sanity is going to return the American culture.
The end of American consumerism is a good thing. There will be no more going to malls because we are bored and buying useless crap because we have nothing else to do. The pain is going to come no matter what government does. The government can affect how painful it will be. It can make it less painful by getting smaller and decreasing spending. it can make it worse by getting bigger and increasing spending.
In true government fashion, it has chosen the latter route. It tells us it is here to help. It speaks as if no government action will result in the end of the world. The reality is that increase in government will make the problem many times worse than it already is.
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Tags: american, economy, standard of living
