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This isn't your grandparents' recession

Posted Oct 13 2008, 11:09 AM by Donna Freedman
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When the going gets tough, it's tempting to invoke our grandparents and their tribulations during the Great Depression. A Smart Spending message board reader posting as "jestjack" started a thread called "Where are my grandparents when I need them?"

"These were some of the most thrifty, smart, industrious, hard-working, and honorable folks," he wrote. "Boy, could we use their wit and wisdom in these troubled times."

I'm about to commit cultural heresy: Not everything our grandparents had to offer would be helpful.

My paternal grandparents, who married in 1935, knew an awful lot about living on an awful little. They'd make most of us modern frugalists look like Rockefellers.

But allow me to point out an irritating fact: The world was different then. When you look at our grandparents' lives in context, you'll see that it was easier to manage on relatively little. Not more comfortable, or more fun -- just easier.

We can't all raise pigs
Let me be clear on this: I am not saying that the Depression generation couldn't teach us all a thing or two about frugality. Advice on topics like sewing, scratch cooking, home repair and no-cost entertainment could be of great use.

But some of their advice just wouldn't fit the reality of many Americans' lives. For example, not all of us have the physical space (or the zoning) to grow a garden or raise pigs. We're limited to what we can buy in the store, and basic food prices are soaring.

If a child outgrew his shoes back in the 1930s, his parents might have simply slit open the ends. His toes would stick out, but it sure beat having them pinched all day. Or he might have gone to school barefoot. These days, either solution would warrant a visit from the Division of Family and Children's Services.

Maybe your grandpa walked three miles to work to save a nickel streetcar fare. Good for him. But that simply wouldn't be safe in many areas today, especially for a lone woman. Besides, many people live very, very far from their workplaces because of the way our cities and suburbs have developed.

If the family did have a vehicle and it broke down, likely either Grandpa or a great-uncle could fix it. Modern cars have computerized innards that daunt most shade-tree mechanics.

And what about car insurance? Or homeowners insurance, private mortgage insurance, health insurance -- do you think Grandma and Grandpa spent thousands of dollars on these each year? Burial insurance, maybe.

White gravy and grimy shirts
Our notions of minimum comfort have changed, too. I'm not talking about the way some people can't seem to live without cable TV or a cell phone. I'm talking about our love for things like frequent showers, clean laundry and balanced diets.

Sure, laundry and baths were harder to manage. But they didn't happen as often. It wasn't unusual to bathe just once a week and "wash up" in between, or to wear the same clothes for several days. Today's water bills reflect daily showers and hair washings, plus the laundering of towels, sheets and seven outfits per person per week.

Don't forget to add in the cost of electricity or gas to heat the bathwater and to run the washer, dryer and clothes iron -- or for that matter, the costs of shampoo, conditioner, body wash, deodorant, razors, shaving gel, facial moisturizer, lotion, laundry soap and fabric softener.

Food back then was a simpler proposition: You ate what you had. If you were poor and all you had was flour and lard, you'd probably eat a lot of biscuits and white gravy. Imagine implementing that menu for days on end in modern times. The same DCFS worker who nagged you about your barefoot kid would return; only this time she might take your children away.

But that probably wouldn't happen, because now we can charge our groceries -- also because a lot of people don't know how to make biscuits, and because they're afraid of lard.

There's no comparison
Again: I am not saying that we couldn't learn a lot from our elders.  But I think it's facile and even a little dangerous to get too pious about how our grandparents coped with the Great Depression and how we should be able to handle a little economic downturn, or even a big one.

Their world was just too different. It was harsher in some ways, such as the fact that if the bank failed you'd never see your money again. But a number of social and cultural pressures that we now face didn't exist in the 1930s.

You weren't expected to go to college, let alone go into crushing debt to pay for it. You weren't considered a loser if you worked with your hands. You weren't a failure if you didn't have a home of your own by the time you were 30.

Besides, underneath all those collective, sepia-toned Great Depression memories lie some pretty unpleasant realities: malnutrition, poor sanitation, a lack of medical care, institutionalized oppression. Homes were foreclosed upon back then, too. Some men deserted their families because they couldn't provide for them; some committed suicide for the same reason.

There's plenty to be learned by reading about the Great Depression, especially oral histories of the folks who lived through it. But please don't fall into the trap of thinking that (a) we've become soft and lazy and can't take a little adversity or (b) that things were "better" back then because people pitched in and made do.

There's some truth in both statements. Some people today consider it a sacrifice just to give up going to restaurants, and some folks back then were desperately poor but still fairly happy. But the fact remains that today some people are in big trouble not because they're lazy, but because of complex personal, national and global economic issues.

Don't over-romanticize the past, either. Americans have a tendency to wax nostalgic about simpler times. They were simple, all right: A simple matter of national heritage could keep you out of the running for a good job. A simple sniffle could lead to pneumonia and almost certain death. And simply put, nobody wants to be the kid whose toes stick out of his shoes.

Comments

 

They also lived lives that were much shorter. The average life expectancy in 1930 was 59.7!  www.infoplease.com/.../A0005148.html

Great article, but your title mentions, recession and your article I believe is describing the great depression.

Great article.  Everyone that posts has a point, one way or the other.  A few things I have seen (and lived).  I lived in California when the housing bubble was on the upswing, a 3b,2ba for 350k; 2 years later, same house, 650k+.  I didn't buy, I lived in an apt and my family was ok.  We were able to go out to eat once in a while, have some fun, order pizza here and there......and not have to be house broke!!  Alot of my friends bought houses, "you need to get a house, you will make lots of money they said to me at work every single day";  then all the sudden, prices drop, they are up to their ears in "adjusted" mortgages, and boom....losing the house, the car, the rv, the boat (everything they got with borrowed equity money) all gone including the house!! OUCH!  Now, I have a nice home that I can afford, a couple older cars and I am living on a tight budget, my family is doing fine.  As for my friends, starting over at 40 now because they thought they "deserved" to have everything at 30 or 35!  Our grandparents didn't think they deserved anything other than respect from and for their neighbors.  What a shame to see what is happening to our great America because of greed, don't just blame wall street, look down YOUR street and see some of your neighbors borrowing still today to get things they think they "deserve".  I think we DO have a lot to learn from our grandparents, maybe some of our neighbors need to listen before we lose all of our greatest generation and have no one to turn to for advice!!  

    People talk about the unemployment from the Great Depression as though it was much higher than it is now. However, economists and our government have changed the definition of unemployed. Today, if you have given up lookiing for a job, you are no longer unemployed.

    Tell me how that makes sense, please. I think, today's unemployment is over 10% and possibly close to 20%, but the bean counters want to slice it up so its only 6% or less to make us feel good about overworking ourselves. So if you could get any ungarbled numbers about employment and population in the U.S. and actually find an economist willing to apply a definition from the 30's, you may just be amused at the 'sudden jump' in unemployment numbers.

I grew up hearing about how bad the poverty was during the great depression; but, to be onest my parents and many of my friends spoiled us rotten.  they wanted us to have a college eduation, name brand clothes and a car..Now many of us are cutting back for the first time in our lives, and it is hard, often depressing and could become worse.  We have to persevere and cut back on our own childrens habits..I am really trying.

I disagree with most of this.  Our country HAS become too "soft."  Most people think adversity is living without a cell phone or cable TV or not being able to wear $200 sneakers.  If this country had real problems again, most people would be asking the government for more handouts, of which the government can not afford as it is.

We along with everyone else in this nation have watched our 401K shrink, our expenses for basics rise, and gas prices eat our vacation money.   My husband still has a job and we still have a little money in the bank.  We have never been hungry except by choice (diets) We have never been cold and homeless, we have never lacked clothing (not always in style, but so what) If our son can't go to the expensive school but only to the community college we will deal.  If we are eating less expensive food--last night was beans and cornbread, well, so what, we are not hungry!   We are still incredibly fortunate and live better than 90% of the world.  No, its not fun to put off having my hair done because our son needs new band shoes when I used to not have to think about those things, just got whatever we needed. No, I would not rather eat beans than a delivered pizza and my winter coat is looking a little ratty and I would like a new one, but its not going to happen.  Still I remind myself every day of what I already said, we are incredilby fortunate compared to the rest of the world.  I am trying very hard to deal with todays reality with a positive outlook and think mainly on what I do have instead of what I don't.

Famous words from grandparents " save your money, any fool can spend it."

Denis

Donna:

Congratulations: You have summed up perfectly exactly *why* we are so sunk these days.

What you're describing here is a classic example of a "Queen's Race". Where you have to run "faster and faster just to stay in place". It is this treadmill that people hop onto and get themselves into such trouble.

College: Everyone "knows" that if you don't go to college you will be a garbage-man. Well because of this belief we have more and more garbage-men with college degrees. The hamster wheel simply spins faster.

Cars: Everyone "knows" that buying anything less than an SUV is the equivalent of assisted suicide (because you will be instantly crushed by the nearest SUV). Yet SUVs have shockingly high accident and fatality rates on their own. They're not worth the money people spend on them and the rationale to keep them becomes one of these "oh we can't LIVE without them".

Laundry: Did you know that hanging your laundry outside will save a lot on that energy bill? People ask me about my solar systems and what's the best thing to get. Answer is simple: A $5.00 clothes line. "But ZONING WON'T ALLOW IT". Well, then change the zoning or move.

Same for the shoes. Yes, if one kid comes in barefoot CPS will probably go bananas. Boy that will lower the ole property values. However what happens when 20 come in barefoot? 100? Half the school? CPS will have problems far bigger than that to deal with. Like white gravy biscuits.

I believe that most of the stuff we take for granted as "critical" are really quite optional to maintain a decent life. College degrees, large houses, big cars, disposable TV's, and so forth. The secret to surviving bad times and good is to simply look around you, see what you have, and see what is making you money and what is taking away your money.

That's what my grandparents did. And they lived quite well.

Great post, and the replies are right that say we can't actually compare conditions, but our thinking can be adjusted to fit conditions in any age.

My father told me how HIS father (who had an excellent professional job) died after the 1929 crash, of a ruptured appendix because he wouldn't spend the money to see a doctor. That little bit of "thrift" plunged his family into destitution for the next 30 years. Rich or poor, I hope I would never be that stupid.

When I bought my house, I was careful to buy only as much as I could afford, and I still have the house despite several job losses over 20 years as my companies were "downsized." But the banker would never have allowed me to take on more than my income would carry, anyway...because he couldn't have justified that to his superiors.

I've been adjusting in small ways - I bake bread for pennies instead of paying $3 a loaf, I buy cheaper and fewer snacks, and I don't shower or change outfits all weekend if I'm just staying home cleaning. I've brown-bagged lunch all my life, swapped books instead of buying, and have never drunk a $4 coffee. I eat out once a month at a group lunch meeting, and I budget for that. As a diabetic with other health conditions, I do my best to pursue healthy habits and buy good food and medications. But I lost my emergency fund in June when my 12-year-old car died and I needed another (used) one immediately, and I can't afford to rebuild the fund now.

My one indulgence is broadband for my laptop which is my key to the world and helps me learn to save in many ways, including online banking. The one thing I can't eliminate is the expense of my 4 older pets who need special diets and expensive medications - but they are family and have earned their keep. We each make our choices.

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