We, meaning our family and friends, were talking about the Y2K problem at least 20 years before it happened. So how did it become such a big deal? If we peons knew, why was it an apparent surprise to the U.S. government and business world? Why were we caught so off guard that we needed a drastic increase in programming staff, which necessitated reaching overseas to Indian programmers, which in turn sparked the subsequent massive exporting of American Information Technology jobs?
We've known for at least as long that our economy was headed for a difficult, possibly even disastrous "correction." Some borrowing is healthy and makes financial and economic sense—reasoned, careful borrowing with every expectation of timely repayment—but an economy as dependent on foolish borrowing as ours is only a house of cards waiting to crash. The wonder is that the fall has been postponed so long, even if our current troubles are the needed correction. (I'm not sure they are; we've weathered disruptions before, and the media live off of doom-and-gloom, making everything seem worse than it really is.) We've buttressed our card house by extending more credit; then putting mothers to work to bring in more cash; then extending more credit; then putting our teenagers to work, not to support their families but to support the economy through foolish consumerism; then pushing credit on those who are least wise in their spending and can least afford to repay; then putting our homes to work through home equity loans; then stretching credit to the absolute breaking point as those in the highest places of most responsibility began behaving like the most foolish neophyte with a brand-new credit card. And all, from the dirt-poor to the wealthiest, expecting the government—which, may I remind you, is you, and me, and all those who still believe in responsible spending—to pay for their mistakes.Enough ranting. The point is, we could see this coming. So why couldn't we find a solution before the crisis point? Are we all so short-term focused that we can't consider long-term implications and actions? Are we so dependent on the whims of voters and stockholders that difficult measures can't be implemented because the bearers of bad news will be kicked out before anything can be accomplished? On an individual level, are we so stressed by getting from one day to another that we can't take action for the future? Is it because neither families nor the government nor business can agree on the prudent course of action?
No answers this time, only questions.
