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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

 

Lots of valid points Donna!  Thanks for the insight.

Folks raise pigs now, but feeding them is an expense in itself...chickens as well, a sack of meal for our rabbits (yum yum) costs $10.  It would have been cheaper to purchase meat at the grocery store than feed livestock. And that sack only lasts for a couple weeks.

The older I get the less sympathy I have for whiners and those that would place the blame for their circumstances on others.  

I earn about $190k per year.  I've never had cable TV (I grew up thinking you simply don't pay to watch TV, it's free! and it is! I got a good antenna and a Netflix account though!), I buy store brand groceries unless the national brand is demonstrably better, my diet is heavy on inexpesive foods like yogurt, fresh fruits, cereals, canned fish, I eat very little beef, I saved up 20% plus 1 yr living expenses before buying my house, which cost $350k (they would have financed at least twice that), I wear my clothes multiple times before washing and ironing them, I also take "navy" showers and I'm proud when I see I've reduced my water usage 30%, I set my thermostat at 67 F in the winter and 65 F in the morning when I'm getting ready for work (with hot morning coffee who needs all that heat?), I drink Starbucks only if I'm meeting a friend to chat, I don't buy a lot of clothes since what I buy seems to last forever, but when I do I often buy them at K-Mart.  I buy a brand new car every 8-10 years, it usually says GM on it.  I read newspapers and magazines I enjoy online, usually for free.  I take out fast food on the weekends and eat while watching sports for free on TV.  I buy used books online (unless the price for new is not much more than price for used), then I pass them to family or friends when I'm done.  I often buy a book I want for $1 plus postage.   I donate about $2000 per year to charities, but only to charities that DON'T help poor people in the US (my taxes already are quite generous in that area).  

Now I DO splurge on some things.  Every year I like to take a 1 week international trip which runs me a few thousand.  I'm single and I spend some money on girls and partying (probably my biggest expense), And if there is some luxury item I want, I usually just buy it.  I occasionally send my Mom money, even if she doesn't ask for it.

So despite having considerable resources I live frugally because it's all I need.  It never even occurred to me to assign value to myself relative to my property.  I think what people regard they "need" is usually way more than what they really need.  In a free society (our is getting progressively LESS free) people almost always ultimately end up where they belong.  Character IS destiny.  

I would never assume to tell someone they shouldn't spend $4 for a cup of coffee, live in a luxurious house, buy a luxury vehicle, eat at fancy restaurants frequently.  I think people should be able to live how they want.  Just don't come to me whining and asking for a handout in the form of higher taxes if things don't work out for you.  Don't come to me telling you want to remove the cap on SS because you have no retirement money saved, don't tell me I have to pay higher taxes to fund this one's desire to have 8 children, or that one's decision to spend his youth partying instead of seeking an education, or the other one's decision to tell his boss to go to hell because his pride was injured.  

I have no problem with people living how they want, just don't ask other people to pay for your mistakes or choices in life.  

I believe if you can purchase some land to raise your farm animals and plant a large garden you should while you are able. If the price of food and energy continues to climb and your 401k continues to decline and the job market continues to give raises that do not keep up with inflation and social security doesn't give adequate cost of living adjustments then what will you do to support yourself and your family? Cut slits in shoes and walk 3 miles to save a nickel to buy groceries? It'll be lots better if you had some land to raise your own food with which to consume, save, share and sell.  I know lots of americans can't (or won't) do this but I'm just suggesting if at all possible do it. We did and it's been so wonderful for us and for our peace of mind.

We raise a pig or two, and live 'real' lives. Think like a Boy Scout, be prepared.

mmm... bacon

Yes things were different...BUT imagine if we were forced to be different again just to get by.  Just because that was what "was" then doesn't mean it could not be a reality.  Bottom line is if people are on a large scale hurting because of lacks of supplies because of failing companies, shortages of credit because of failing banks, and overall world economy effecting ours...guess what that's right my carefree Americans ( and believe me I am as hopefull as it comes that we will never have to face such hard times)  we would either pull together and share what we had OR civil unrest would surpass local authority being able to control those who would seek to harm those whow "have",(i.e.) gardens, livestock,well water, ability to defend themseves..While none of us wants that day to come...better to spend the time now learning about how to prepare for the what if's instead of the Ha Ha..won't happen to us!...I think not overthinking either extreme would serve best here but rather being "prepared" with an open mind rather than sticking our head in the sand.  Unlike our grandparents era..our economy is not largely our own, nor in our own control outside our borders....get it!?

WOW!  Everyone is doing so much to save!  Although I thought I was doing a lot, I don't think I have done much.  I make sure that when we buy properties, we can afford with one income just in case one of us loses a job.  I started growing foods, but not much.  I compose waste.  I don't buy much clothes... I usually don't dry clean our clothes. Both of cars are all paid for.   I eat leftover food when my husband is out.  That is about it.  We still only try to buy organic food as much as possible.  We eat out at least 3 times a week.  We have 3 houses, and we may buy another one next year.  We take many trips.  This year, we went to England, Vegas, DC, Atlanta, and we plan to go to Hawaii, India and Japan before the end of this year.  After reading everyone's comments, I feel that I should also start doing little more...

I agree TV maybe you should be donating some more to charity..you seem to have it all figured out. ...way to go!  I am in upper middle class..but even I haven't figured out how to come up with the scratch for all that traveling.

The entitlement mentality is a big problem, yes, but it is one that probably 90-99% of us has fed into. So blaming everybody else for being stupid or lazy or ignorant not only doesn't help anything, it just proves that the entitlement mentality still exists in you. "If it weren't for them, I'd be ok. Because I'm entitled to be ok."

As far as how hard this situation will be there are still several positive factors:

-Wall Street is still several hundred percent higher than it was even during the Roaring 20's

-Unemployment is still realtively low

-And there are some safeguards in place to keep most people relatively safe.

And that just a few.

Even if the economy gets significantly worse (steady decline, 50% or more loss on Wall Street), comparing the two time periods is like comparing apples and oranges which is the point of the article.

Like several people have said, we need to start learning to live within our means. Stop trying to keep up with the Beverly Hills Joneses and Trumps and just live for what we need and enjoy. There's no reason not to have things we want but maybe we just can't have them now.

People used to be able to think about what was being thrown at them and process it to determine if it was a need, want, or a desire and then act in their best interest. We really don't do that anymore.

Credit has ruined our country economically.  We should remember that "having it now" and somehow forgetting to repay debt as agreed hurts us all.  Whatever happened to the notioin of saving for what is desired until you had enough to buy whatever you desired?  It still works for those who do this and is devastating to those who don't  It's called being responsibie, I think.

Very well balanced and refreshing post that does not let us off the hook for our unfrugal ways but at the same time recognizes that in many ways it is nearly impossible to go back to living the way we did back in the 1930s.

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