I don't know that the stimulus plan will inspire confidence in the future, either, but I hope over time it may. Especially if we see home sales improving. I wish they would have stayed at a $15000 tax rebate, and for any buyer of a primary residence, but hopefully this will help at $8000, anyway. In any event, maybe some of the entitlement spending will help to prevent serious social consequences, which may get us through the worst of it. If we didn't do this, I think we would have a greater feeling of dread because of the increase in the volume and depth of stories of tragedy. I think that impacts our fear about the future more than the realities of our personal situation, sometimes.
I think you sound reasonable, gramarye, and I'm guessing you are a younger person - starting out, so paying off debt and saving is a good idea no matter what the economy is doing. I can't tell you if you should be especially fearful, but would suggest someone as intelligent and healthy as you is more likely to land on your feet after hard times. So, maybe you have a little less to fear than it feels like at the moment.
Carl and I are older, so we do have a little different perspective right now. We've never been flashy people (for example, we drive a 5 year old vibe and our second auto, for occasional use, is an even older truck), and we've had time to pay off debts from when we were younger. This has helped us to actually be cautiously optimistic about weathering the current downturn, since we know we can live pretty cheaply, have decent jobs, and we have some savings. I will admit, however, that I am an optimistic person by nature. Our retirement savings has taken a beating, but we'll hope to ride this out (or work longer). If things get really bad, I think it's important that our local economy is as healthy as possible.
So, we're trying to put money into the local economy. We want the businesses in our neighborhood to survive. We're also redoing our kitchen now. Construction has been hard hit, so putting some work there will help a few folks. Of course, if it's just us it won't make a difference, but I'm sure there are others. And for anyone considering this, hey, we might even come out pretty good on this deal, since supply costs are down and we've heard deals are to be had. And, it's an investment in our house (the kitchen has 30 year old appliances, so it needed to be done).
Anyway, it appears that the economy needs to contract for a while (or longer), and that will mean some pain, but hopefully some thoughtful contributions by everyone (investing in our house, buying from a local farmer, supporting local businesses), can keep our area from desperation. Carl and I aren't religious, and so we don't tithe. Instead, we give to charity and try to support our community. We feel an obligation to give back. Really, I don't feel so much entitled to what I have as fortunate, and I don't want to see others hurting, if I can help. Besides, investing in the community is a good way to secure your own future, too. For those who can't give financial support, volunteering is a great option. It can take your mind off your problems, put them in perspective, and give you a sense of accomplishment of something important -- all the while helping our community. That can really serve as a boost to this area...
Damn. This is getting ridiculously long-winded. Sorry. Off my soap box, and back to the stimulus itself: I'm hopeful for a future payoff in green industry (although I haven't read up on the details on this in the stimulus, yet). I'm especially looking forward to finding out more about how the stimulus might put some more cash in my pocket!!! We aren't likely to buy a new car just to get a few hundred dollars off of taxes, and we aren't first time home buyers.....hmmmm....I don't know that I care for a lot of their choices, but I do think we'd be worse off without it. Heck, look at other threads: it's not like other folks aren't eating out, buying wine, and contemplating grill purchases even without the stimulus. Not saying don't plan for the future, but it's such a delicate balance. Life's short, gotta enjoy it, too :)
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Launched in August 2010, TheMetropreneur.com is a local online resource devoted to small business development and entrepreneurship. Its aim is to tell the stories of Central Ohio's business community, foster regional economic development and assist entrepreneurs with its resource-heavy focus.