Notwithstanding tons of promises from politicians all over the globe to improve the economy of their countries, the financial crisis is still thriving in our Global society.
A lot has been said about the cause(s) of this economic downfall: the banks, George W.
Bush, and so on.
I could enlarge in too much detail on the mistake of the American people to vote for a Texan who bankrupted every corporation he worked for in his life, but I won't.
The United States is more than aware today that its former Texan President crushed the solvency of the greatest country in the world: Billions and billions of dollars vanished in a bottomless abyss called "Financial Pitfall.
" The consequence of all the mistakes that have been made by all people involved, has put Joe Schmo in a tight spot.
In many cases the average worker was forced to ask for financial help from his friends, family and/or employer (if he was fortunate enough to still have a steady job), to cover for the increase in price of the daily needs of his family.
Many a Joe Schmo (and let's not forget the small business owner), self-employed), freelancer), however, was forced to turn to a consumer counseling credit service and ask for assistance with his acute shortage of dollars to spend.
The ones that were hit hardest had to turn to debt relief counselors.
Millions and millions of Americans are in financial trouble, still today.
How can you prevent those things from happening to you and your loved ones? Notwithstanding the fact that many of the economic "wizards" might chuckle about this simple fact and state the problem is far more complex (they almost worship that word) the man in the street needs a simple fact to hold on to in this "Dark Age" (as he feels very uncertain about the future).
And that simple economics lesson reads like this: you can never get into financial trouble if your income is higher than your expenses.
Needless to say that this "universal law" is violated easily when an economic slump hits the whole world because prices rise, wages get cut, etc.
So to prevent getting into financial problems also includes you need to create a financial buffer you can fall back on in times of distress.
It still amazes me that the greatest economic brains of America do not seem to grasp, that for an economy to work, and to keep working in times of emergency, you need to teach people on how to handle their money in the long-term.
After all, preventing a financial disaster from happening is always better then to cure one.
You would expect that the Masters of Economics knew better.
Or do they have a hidden agenda maybe? Well, time will tell.
But if Mr.
Average wants to avoid turning to a consumer counseling credit service for debt relief or other services, he better abide by this law: income needs to exceed his expenses.
And that is economics in a nutshell.
It is as simple as that.