Work as a team to weather financial storm
George Osborn, Special to The Gazette
Monday, August 10, 2009
George Osborn
FAMILY: Married to wife, Elinor, for 60 years; sons, Brett and Todd; daughter, Jill; grandchildren, Ian and Morganne Osborn.
CAREER: With Elinor, investment advisors in Emporia for 40 years — 20 years with Westamerica Securities and 20 with Raymond James & Associates; they retired in 1997.
Sitting at the kitchen table and looking around I see all the conveniences that today’s lifestyle considers necessities — such as TV, microwave electric stove, refrigerator, dish washer, cell phones, etc. All things that we did not have during the 1930s on the farm.
Looking back through the many years of history, we have had the best time of all times as citizens of the United States from World War II until the present.
The question has been asked, has the economic landscape signaled a recovery or a decline as the result of the worst financial crisis since the Great Depression? I for one, do not portend to have the answer. As Ben Graham, economist, used to say, “The future is uncertain.”
With all of our toys (we think are necessities) are we any happier or are we spoiled, fat and afraid to change?
I can’t say people as a whole were happy in the 1930s, but what carried folks through the Depression was hope that things would get better. It’s ironic that it took a war to resurrect the economy.
Something I have noticed during stressful economic times, people and families pull together and this results in stronger family ties and friendships. Parents and children develop a closer relationship as a unit. There is less, so sharing and giving become a natural thing to do.
As a survivor of the bad times and the good times, what advice have I for the young people today in this economic crisis? There is no crystal ball suggesting whether this will be a short-term financial crisis or a slide into a worldwide depression. It just says things will never be the same as they were.
Remember President Herbert Hoover in 1928 promised “A chicken in every pot and two cars in every garage.” In 1956, a local druggist, sold a well-known pharmaceutical stock he bought in 1929 and after 27 years he still took a loss. Sometimes market prices on stocks or real estate take years to recover and other times such as in 1987 less than a year.
My advice to couples facing this current crisis is to adopt a survival mode. Unlike the TV programs’ suggestion to spend and spend to help the economy, sit the family down and decide what “goodies” are not really that necessary.
The list could be new cell phones for all, new cars for high school seniors, ski trips to Colorado, family cruises, designer jeans, fashion shoes and eating out. They should set a budget and make it work.
Money saved should be placed in a safe investment account. It there are children, the family needs to build a larger education account. The next generation will be competing in the world market for the better jobs.
For parents, social security and employer pensions will only be a small part of their retirement needs. It is up to you to build your own retirement funds.
With this budget, your children will consider you the meanest parents in town because their friends “will have anything they desire.” Remember, a leaner well-educated child will adjust and you will be proud.
Should some miracle come down from the “mountain” (Washington, D.C.) and the economic crisis evaporate, you will look at this writing as the musing of an old timer of the 1930 Depression era.
Enjoy every moment of life as it goes by so swiftly and may there be just enough clouds in life to make a beautiful sunset.