The US economy has been on a sustained high path over the last decade. As I watch the numbers come in, it seems as if we have been on that ride for 10 years now. One thing that does surprise me is how people have not noticed the consistent rise of our economic performance. I believe that it is because we tend to focus on the bad years, or on things that are negative rather than look at the successes as well.
To start with, we have not seen the highest economic growth since the Great Depression. It may have been lower but no less powerful. Going back even farther into US history, we see that during World War II, we had one of the highest economic growth rates of any country in the entire world. We went from being a poor economy to one that was so powerful that we would go into a two-year recession before our economy began to turn around.
Now, with the economic recovery coming in, we are once again experiencing what can only be described as an unparalleled economic expansion. This is good news for many, including myself who do not have a lot of confidence in the national economy. However, it does have a downside. When we have too much economic growth, it also tends to drive prices up and cause inflation. It is very difficult to buy a car, put gas in the tank, or even rent a house at a reasonable cost when there are so many additional costs that are associated with these economic times.
Another thing to consider is that it takes a long time for an economy to return to its peak rate of economic activity. Usually, it takes about three years for the US economy to bounce back after being in a severe recession. Is this the highest economic growth we have ever seen? Probably not, but it certainly is one of the fastest.
So, as you can see, the past is irrelevant. Our current economy is going to continue on its recovery journey. What is important is that the focus turns to the future and that we all work together to prevent any further deterioration. This means cutting down on our individual spending habits and encouraging responsible consumerism.
In fact, I would submit to you that this is the only way to really achieve the highest economic growth and avoid any future pitfalls. With the interest rates on our credit cards and our overall debt levels steadily climbing out of control, is it any wonder that we are struggling? It's time for us to start living within our means and tighten our belts so that we can save money for the future. It's really that simple! Go out, borrow some money from those around you, invest it wisely, and enjoy the fruits of your labor!