Sunday, November 24, 2002
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Sunday, November 24, 2002 |
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Fear and the economy By
MARY JANE HOLT
I hear real estate investing is a strong and growing trend, "a safer way to invest money." To some, buying second homes, rental property and land has become more attractive than investing in the stock market. I find that interesting. Perhaps I can understand it to a degree. However, if we continue to lose faith in the CEOs and CFOs who are running America's businesses, if we continue to live in fear of war or terror attacks, if we continue to shy away from the stock market even to the point of being afraid to participate in company 401k opportunities, then eventually it seems to me money flow is going to dry up. The Lord knows, and you guys do, too, that I'm no economist. In fact, books of numbers, especially when they have dollar signs in them, have always intimidated me. It's just that, since 9/11, I've found myself observing what fear can do to a people. Let me try to explain how I'm thinking. And let me invite you to respond to this paper or to me directly at mjhcolumn@aol.com. As I share my thoughts, please know that I would love to hear yours. In my own mind there are two schools of thought that support the downturn in our economy. One line of thinking supports the theory (my own) that Americans have had enough. Keeping up with the Joneses is no longer our number one goal. Obtaining more and better, as in "the latest," does not appeal to us like it once did. Though our economic system must adjust, this is not necessarily bad. My second line of thought tells me Americans are scared. This is bad. Regardless of the reason we stop spending or buying, when we do so the companies we have patronized in the past start to hurt financially. They cut back on their expenditures. Eventually, they may lay off workers. Then those workers have less or no money to spend. And though they may not have chosen in the past to cut back, when they become jobless they are forced to join that growing number of individuals who have chosen to cut spending. A friend of mine has this economic theory that I find interesting. It has to do with what happened during and after World War II when women (wives and mothers) were drawn into the market place. My friend says some unseen, but very powerful, behind-the-scenes force saw a way to really grow the American economy if husbands and wives could be kept in the marketplace. And so many moms stayed in the workplace. Their daughters grew up knowing by the example set for them that they belonged there too. And before long these women was setting the example for all little girls throughout America and perhaps the whole world. So what did the economy have to do with this? My friend maintains that cost of goods rose so much that it became necessary for both mothers and fathers to work in order to own a home and two cars. He suggests that we have been manipulated as a society by big business. I'm not agreeing. I'm thinking, but I'm not just thinking. Let me tell you what I'm doing. Since my surgery in August I have not been able to be as active as I would like. One of the things I have done to keep my mind busy is to try to learn more about the stock market. Quite aware of our present economic turmoil, I talked Daniel into letting me invest in a few penny stocks. (He's brave.) I researched my stocks and two weeks ago I bought four. Now one is up 12 cents to 1.53, one is down 11 cents to 5.39, one is down a penny to 55 cents, while the fourth is up 40 cents to 69 cents from 29 cents. Now these stocks are probably not anything special. And I only know enough at this point about the stock market to know that I really know nothing. So why invest? Because I want to believe in America. I want to trust that there are still businessmen in this land who act wisely and morally. So I'm buying and praying. Yep, praying for the leaders of my little companies, and for the leaders of Bell South and Delta Air Lines and AIG and so many other companies, as well as local governments, that are the backbone of our Georgia economy. Please join me in this prayer. Prayer can change things as it changes people.
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