Labor Day-Our Future Economy

It may be the first positive sign however of what now has turned into several years of bad news regarding our economy.  It reminds me of what Winston Churchill so adequately said after the British had won their first victory over Germany in North Africa in November of 1942.  He said: “Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.”

Consumers reducing the amount of income that now goes to paying interest on debt can only have many positive results down the road for increasing available discretionary income.  What millions of people have started to realize after coming through the many years of the great housing and consumer credit boon, is that being able to afford a monthly payment should not be the first criteria when deciding to make a purchase or not.  They have learned what negative compound interest and actual dollars spent in interest servicing debt can mean to their financial futures.

We cannot yet visualize as a society what the next big trend will be that will jump start the economy but hopefully future generations can help sustain a longer and more prosperous period of growth by having learned from their parents the pit falls of negative compound interest.