Quote:
Originally Posted by Autoputzer
My mother was a bookkeeper. She made me take two years of accounting in high school. That and one college course in quantitative analytical economics (a.k.a. "engineering economics") has benefitted me greatly in life. That class was required when I was in college, early 1980's. But, there's more computer stuff to learn now, and there's only so much you can cram into four years. So, it's not a required class in engineering school anymore.
Most of her life, my mother said that every high school student should take accounting before allowing to graduate. Later in life she changed her mind, saying if everybody knew how to manage money, our economy would collapse.
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Your mother bless her heart was totally right. I have been aware that if the majority did financial things like the wife and I practice. The economy would collapse is almost certain.
This is a consumer based economy that can only exist if insane consumption levels are maintained. It has reached a stage where money in the form of credit is being basically forced on consumers to sustain it.
I have no ideal of when the point of too much credit saturation occurs if at all. I suspect some form of effort will evolve to force the continuance of what currently is. Reducing the average practical current lifespan of many products is already a necessity.
It is already too late. North America society in general has gone from a basically paid up existence to a primary debtor society. This is a reduction of the financial well being of too many citizens. As well as all levels of government. The standard of living has fallen but excessive credit usage is masking it. For too high a percentage of the population.
So it is just not the spread of incomes involved as a problem. There is a larger gap forming between the haves and have nots as well.