I was reading today in Fortune Magazine an interesting piece by Beth Kowitt, that outlined amongst other things, the following shocking economic indicators.
The State of California has a $3 billion budget short fall this year.
The State of New York is looking at a whopping $47 billion deficit over the next 4 years. Yes, that’s billion.
Everyone is focused on the banking crisis, as they should be, but if we don’t pay attention to household financial health, an soon, there is going to be a crisis that will make the banking crisis seem mild in comparison. It’s called consumer confidence. If consumer confidence craters, they will zip up their pockets and refuse to spend and then the entire party called economic growth is off. This economy depends upon leverage and a basic level of sutained consumer confidence. 70% of the $14 trillion US economy is based on the US consumer. There can be no sustained consumer confidence without financial literacy.
As our nation’s policy makers reframe our larger economic policy, they need to also insure that they “educate America” about their and their nation’s finances. With this the general American public will have needed confidence to make decisions, will give their leaders the support they need, and the credit they deserve if and when they get us out of this mess.
I believe that “hope is on the way.” You should too.
Onward with HOPE