Americans' Standard of Living Permanently Changed
By lilwonders
@lilwonders456 (8214)
United States
February 18, 2009 8:29am CST
"The worst is yet to come," according to Howard Davidowitz, chairman of Davidowitz & Associates, who believes American's standard of living is undergoing a "permanent change" - and not for the better as a result of:
An $8 trillion negative wealth effect from declining home values.
A $10 trillion negative wealth effect from weakened capital markets.
A $14 trillion consumer debt load amid "exploding unemployment", leading to "exploding bankruptcies."
How do you think our standard of living as a country will change? Comparing that we are the largest comsumer country how will that effect the rest of the world?
2 people like this
8 responses
@spalladino (17891)
• United States
18 Feb 09
I don't know that I agree that it's a permanent change but I do believe that it's going to take a long time for this country to recover and that some Americans may not be able to return to the standard of living they previously enjoyed because it was artificial. One example of that is all of the people who were living in houses they couldn't afford. I watched an interview on tv the other night about a single mom who was about to lose her home to foreclosure. That house cost $800k! So, no, she will probably never live in a house in that price range again but that doesn't mean that she'll never be able to buy a house again.
This isn't my first Recession Rodeo. It takes time to recover and recovery is slow but I do believe that folks will adjust, new businesses will open, failing businesses will recover and the housing market will rebound. Since we are now part of a global economy and other countries are suffering because of our problems, I believe that those countries who depend on us will also take steps to help the economic rebound.
@irishidid (8687)
• United States
18 Feb 09
Perhaps this is a bit off subject, perhaps not but I think it is very telling the Wal-Mart is profiting where others aren't. My daughter, who works at Wal-Mart has received two bonus checks and she told me a third one is coming. Seems to me that they are doing something right while the rest aren't. Maybe the less money the more cautious people are about where they spend it. Anyone's guess.
@Taskr36 (13963)
• United States
18 Feb 09
Well I think Walmart has a solid business plan and knows how to make the most with the least resources. They have many workers with minimum skills who they manage to put into jobs where they are actually a valuable part of the team. They sell in bulk to keep their prices low. They treat their customers well. They carry almost anything and everything you might need.
And the part many people don't realize is that they are one of the most charitable businesses in the nation. I volunteered at Give Kids the World where Walmart is the single biggest donor of money, food, and supplies. They are an example of why "Big Business" is a good thing in this country.
Simply put, they are an efficient company with brilliant upper management. The collapsing banks and car companies are run by morons who make millions sucking the life out of their own business. Walmart is run by people with a long term vision who know how to profit without crippling their own company.
1 person likes this
@irishidid (8687)
• United States
18 Feb 09
Agree and they treat their employees well despite what some think. My daughter works less than 30 hours a week but is still eligible for benefits including a 401k. We chose not to get the health benefits because she is already covered on her disability but she does have the 401k.
@grammasnook (1871)
• United States
19 Feb 09
Of course Walmart is making it, yes they have a smart business plan but if they bought American products then there would be alot more jobs available. Oh praise Walmart. Would you please walk into any Walmart and find me 10 items that are American made? I am also willing to bet that they buy their produce from overseas as well. The reason we didnt have these types of problems back in the good old days is because communities stuck together they supported their local businesses, they bought from eachother and made that community work.
Maybe Walmart should think about opening up and expanding in producing their own product right here. Imagine that a Walmart factory, where they make clothing and all kinds of things. This way we can export some materials from other countries and still keep the american workers working, buy up some farms and start growing their own wheat and corn and put Americans to work. Or perhaps just go down to the farming area of the United States and make a deal with Our Farmers.
Congradulations to Walmart for giving some back to the community, but have you ever thought of how much has gone to other countries. The American people have always come together and supported all kinds of different charities, we do it everyday just because we do not give billions individually we do it all together.
This is my opinion
@sedel1027 (17846)
• Cupertino, California
19 Feb 09
If people manage their money correctly and get out of debt, there is no reason our lifestyles should change THAT much. If people would live inside their means, most of what is going on now wouldn't even concern people.
@deejean06 (1952)
• United States
18 Feb 09
I'm very frightened for the coming "change". I think the market has already voted what it thinks will happen and the dollar will plummet in value. The wealthy will be untouched but the middle class will be hammered with taxes and will morph into poverty very quickly. My family and friends are already bracing for the years ahead.
@lilwonders456 (8214)
• United States
18 Feb 09
I know what you mean. It is going to get worse instead of better. Our gov. is not fixing the problem but making it worse.
@deejean06 (1952)
• United States
18 Feb 09
I simply don't understand it - if the previous administration was so terrible with spending - how come the first thing this administration does is spend as much as they possibly can?
@lilwonders456 (8214)
• United States
18 Feb 09
Exactly....we should all be asking ourselves and our elected officials this question.
@altaf_falkay (2)
• India
19 Feb 09
I don't think that the down going economy of U.S is a worrying factor for rest of the world, as U.S is no longer a super power today. Look at the emerging countries like china, india, japan.
Also the U.S market is not affecting the Indian market as well as chinese market. though the global recession is on but the world will over come recession.
@xParanoiax (6987)
• United States
19 Feb 09
Nothing in this world is permanent. But it is likely to change, yes. I'm not sure if we'll swing from our past extreme to a new one, or if in the end it will actually be a bad thing (though I'm sure that while it's happening it won't be at all pleasant).
Our country's been changing for the last year. Not as much in how we live but how we think andthe level of thought we put into things. So far I've seen a pretty even mixture of good and bad results from it.
I just hope that as nasty as things may get...we'll manage to turn it into something good, to learn from it, once the change is complete.
@JodiLynn (1417)
• United States
18 Feb 09
Is it me or does anyone else hear Stevie Winwood singing..." the percentage your paying is to high priced, while your living beyond all your means. And the man in the suit has just bought a new car with the profit he made on your dreams...."
Low Spark (on high heeled boys) by Traffic








