The Depression and Recession...How does it shape Financial thought

In a recent article in the March 8th 2009 Week in Review article titled Generation OMG, the parallels of the effects of the Great depression and our now Great Recession show some surprising things. If you are not aware of this, in the 1930's, the United States was in what is called a Protectionist state. What this means is, as a country we kept to ourselves and wanted less to do with the world. This had a profound effect on the children growing up at that time. It kept them simple, unimaginative. According to the article, many of them were not adventurous and were not inclined to start businesses etc.

When you look at this recession we are in today, the fear is that this mentality and thinking has a good chance to repeat. This is not good to look forward to. As the article puts it, The Depression "...created the risk-averse generation." "In job interviews, the first thing Depression babies asked potential employers about what was the pension plan". In my opinion, many of us are STILL stuck in thought process as a result of our education. This generation "produced more than a dozen White House chiefs of Staff, but not a single president". So the recession today is creating this same bubble of protectionist attitudes for our children. Keeping to ourselves and thinking we dont have to worry about the world and what happens in it is a VERY dangerous thought in this interconnected society. The time to consider and take hold of this trend is now!

The entitlement attitude in todays society is very apparent. Our dependence upon the system has placed many of us now in very bad and dangerous circumstances. The biggest difference between the Depression era and our recession era is the way the world and economies operate today vs then. Having an entitlement or "protect me" attitude, as we can clearly see today, WILL NOT WORK. The banks need a bailout. People thought the banks and government would do right by them and took on mortgages they should never have had.

The point I am trying to make with all of this is that we need to strike out NOW and take care of ourselves. We need to fight against the traditional thought that we are going to be taken care of. Social Security is a JOKE and will NOT help you. (A concept thought up after the DEPRESSION...does not work TODAY!!) The crisis today destroyed the concept of 401k as a nest egg. Look at how MANY have no retirement money. Many are going back to work in their 60's and 70's. (How will your health be by then...the U.S does not rank very highly as a healthy country...a topic for different forum).

The time to learn about money, finances, banking, business...preferably now home businesses, investing etc is NOW. DONT WAIT for someone to find your solution. LOOK NOW if you can to learn. Dont stay in your entitlement mentality...Just look...if you are having or see others having money issues...is the Government helping them or you? Who is going to teach you? Are you going to go with the same financial advice? Look at the times. See the world around you and take action. Create your own bailout. Dont go towards the Depression mentality...or the changes in the world today may overcome you.