Friday, April 22, 2011

LinkedIn discussion

Bill M. – Executive Director in nonprofit with multiple degrees including a M.S. from UMass Boston

This is an interesting discussion because it takes so many forms.

People often equate the American Dream with homeownership because it was probably a marketing gimmick of the 40's to stimulate the economy and consumerism. Hence, the proliferation of houses with picket fences all over America. Owning a home represents so much more than simple homeownership - it involves independence, "owning a piece of the rock", asset development, values, accumulation of wealth and so much more. It's sad to think that reference to the American Dream is completely wrapped up in materialism but unfortunately it really is. I've often wondered how that could be because it isn't what I consider to be my American Dream.

However, today I believe it represents more of an American nightmare because housing acquisition costs are so wildly escalated as well as the cost of owning the home. A much larger percentage of income (often 50% when the rule used to be 25% - 28%) is needed to pay for the basic ownership costs (PIT). It's not the 40s & 50s anymore! All costs across the board have escalated not to mention modern day additional costs (technology) to the point that fewer and fewer people can afford to own a home but that doesn't stop Wall Street from putting them in one. Or, once owned, people can't afford to maintain it so run up additional debt turning their asset into a liability. And, you can see by the national foreclosure epidemic that today homeownership is very fragile and it doesn't take much to go to the brink of disaster. This has grave impact on people's emotional state because so many of our values, etc. are wrapped up in the home and where we live, etc.

Homeownership isn't for everybody but you cannot convince the American public because Wall Street sold them a bill of goods and we were brainwashed, albeit willingly. Most people fell for it hook, line, sinker, pole, & boots! The byproduct of Wall Street's relentless desire for more profit at any cost has been translated into the American home. The result is a Narcissist society that demands whatever they want in a nanno second at any cost. They borrow money at an alarming rate as a tool to increase their income with little regard for the consequence or the fact that it needs to be paid back. No one believes in saving anymore - just whip out a credit card and that takes care of it. No one is willing to wait and save for anything. We have no real economic values. The result is an out of control society that has choked on its own success. There was no greater evidence of how out of control we've gotten than when the 9-11 disaster happened and President Bush told us to go shopping. Imagine, in the midst of a crisis and chaotic emotional state and the President of the U.S. says go shopping. What has happened to us? We are ruled by materialism, consumerism and a throw away society that has a "devil may care attitude" with no regard for the future or anyone else. The bill for all of this will come due and we are seeing this American Dream shattered perhaps as it should be.

I'm concerned for the collective emotional trauma that will hit so many people. Everyone blames someone else for their problems. We say less government but the first question asked when something goes wrong is where was the government? We can't have it both ways. The truth is the first place to look is in the mirror. It's time we got real and started taking responsibility. I think it's time to jettison the old idea of the American Dream and replace it with one that has real personal values and responsibilities.

No comments:

Post a Comment