How do we get out of the economic mess?
The secret isn’t as grand as you might think. The answer isn’t bailouts. It isn’t another swing of tax rebates.
If you’re up on your fairy tales, you already know the first step toward the exit.
Recall “The Emperor’s New Clothes” by Hans Christian Andersen. A pair of swindlers masquerading as tailors claimed to make the ruler an outfit of such fine cloth, it was invisible only to the stupid. You know the rest — no one dared to admit the cloth wasn’t there. Instead, everyone praised the duds until a child pointed out the emperor was streaking through town.
Some in the community have said how insulated our economy is here, how well dressed and shielded it is compared to the rest of the nation. And yet we’ve seen the numbers. If we’re so insulated, why are we seeing so many job cuts in the local news? Why so few job listings? Why has the number of building permits decreased?
On the other hand, the upper valley economy isn’t stark naked — not yet. Housing foreclosures aren’t as rampant here as nearly everywhere else in the country. And gas prices are back to a (relatively) reasonable level. Still, it is hard to afford even gas under a buck (ah, the good old days) if you don’t have a job.
The first step is realizing something isn’t right — maybe the economy that’s being paraded through the streets is not as perfect as it seems. That’s the bad news.
The second step: What got us into this?
This one’s obvious: greed. Many Americans wanted more, more, more until they had less, less, nothing. And the dominoes fell.
While it has been said upper valley residents tend to be more fiscally conservative than the rest of the nation, the innocent were punished along with the guilty. The guy who didn’t swipe his card every time he saw the latest gadget — he lost his job. The woman who knew she couldn’t afford a house with its own ZIP code — she struggles to pay the rent. Like the flu, the economic situation spread from person to person, from state to state, from the sick to the healthy, despite the all-too-late vaccines the government is poking our arms with.
So what’s the cure?
The greed of others, on and off Wall Street, got us into this. But we have to overcome our own greed to get out.
There are two types of greed: grabbing and hoarding. People and companies existed beyond their means. That’s grabbing. Now, many of us are in frozen panic mode. We hug our money close to our chests and growl every time an expense approaches.
If everyone’s hoarding their money, how will the flow of money improve? The cash that seemed so plentiful when the nation was flourishing hasn’t evaporated. It isn’t being stowed aboard the International Space Station. It’s just being held in clenched fists.
Our economy depends on more than the dollar — it is founded on trust. If people don’t trust the state of the economy or their neighbors, they get a reciprocal response.
We could end the recession today if everyone simply — but wisely — spent as if it were 2007.
That’s a dim possibility.
But here’s what you can do: Spend your money locally and optimistically. Don’t let whims be your financial advisers — that was stupid before the recession hit. Keep a healthy amount in savings, but don’t put off buying the necessities and even what luxuries you can afford. If you’ve got some loose money, now’s the time to buy the extras — many merchants have slashed their prices to welcome you back. A lot of the deals you’re seeing now will disappear as the economy stabilizes.
Yes, the upper valley economy is in a loincloth. Don’t just cover your eyes — remember, the robe’s in your hands.

— Robert Patten

Our View represents the majority opinion of the Standard Journal editorial board. This editorial appeared in the Saturday, Jan. 17, 2008, Standard Journal.