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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

 

We Shouldn't Forget That Rising Gas Prices and Shady Real Estate Companies That raised the values of homes that weren't worth what they were sold for have caused this. Not to Mention we don't have sound money. We have fiat currency which is printed out of thin air. If our currency was backed by silver and gold we wouldn't be in this mess. For Every Dollar That is printed up it makes our currency worth less. Not To Mention Nafta Have Sent Our Job Overseas which in turn makes it hard for people to find work to pay for mortgages. Interest is another thing that shouldn't be imnplemented as you have to print more money to cover interest which again devalues the dollar. look it all up if you don't believe me.

I agree with Judy and Joe Six Pack.  My husband and I looked at buying a home about 4 years ago. I was shocked at what they thought I could afford.  We walked out of the deal and kept renting. I was disappointed but am so thankful today that we did not relent to "social and cultural pressures".  We are still renting and we only have 1 car.  But we have no credit card debt.   My mother-in-law is now a widow, after my father-in-laws long illness.  She refinanced her home but still could not afford to live in the home.  She just sold the house and is moving near us and will be renting.  Home ownership is not a right, a necessity, or an entitlement.  We need to learn to live within our means.

I consider myself one of the blessed because I grew up with depression era grandparents. Yes - I did actually listen to their stories when I was growing up and the lessons they taught have been some of the best. I have carried them with me through my life and they helped me during the good and the bad times. I learned 1) to live within my means 2) who cares what others think? 3) Family, friends, good health and hope are the best gifts you will ever have in life. Suprise - you can't buy any of them! So no matter if you live like a king, you survived a depression or you have lost it all - if you have friends, family, health and hope you will always be "rich". Thanks grampa and gramma for teaching me the truth.

An awsome post. However to survive any low economic period in ones life, flexability in one's idea of what is neccessary can go a long way to ease the stress of the situation. Laughter and more laughter is wonderful.

I would be lying if I didn't say I didn't over spend.  I've charged things that I would like to kick myself for now.  I borrowed the maximum amount for student loans and used the extra to live on so I didn't have to work so hard.

I also would like to add that during my early college years, credit card company were set up on campus.  Thousands of students were away from home for the first time and the idea of being able to buy stuff and pay for it later sounded great.  I certainly fell into the trap.  I felt great.  No longer did I have to depend on anyone else to get what I wanted.  Heck, I didn't even have to work for it.  Credit card companies would just GIVE you access to all this money and you could just pay it back later.  I was a college student, surely I would graduate in just a few years and make so much money paying off my debt would be just as easy as getting into debt.  With a 4-year degree, I would walk into a job making $80,000, right?  Wrong.  

All of the stuff you hear during the first few years of college about how great of an investment this is in your future and once you graduate your life will be filled with sunshine and kittens is a load of crap.  You graduate with, as one poster put it, 'crushing debt' - you have so much debt that the idea of ever paying it off seems like a fairy tail.  And God forbid you start a family, paying student loans, daycare, diapers, formula (if you use it), rent/mortgage, insurance, utilities, food, gas, and clothing are enough to drive many, many people to reach for the credit card.

I know a lot of people who say they worked their way through school to avoid graduating in debt.  I salute you.  You have accomplished a very difficult task.  Not everyone can do that.  It is very difficult for someone fresh out of high school to find a job that will pay enough that they can afford college tuition, even part-time and a community college.

It seems that we are told to get and education, get married, start a family, etc.  But that is becoming increasingly difficult.  If you look around, you will see the teen parents getting grants to go to college and having free childcare while they are in school.  They graduate nearly debt free!  I'm not saying it is easy being a teen parent.  It is most definately not.  I am just saying that as a society we just have a strange way of reinforcing our values.

A lot of this is unrelated to the original article but I feel like this post belongs here.

I loved this post. I would hate to raise pigs, but having a little garden would help:)

You know, we've already got a lot of really poor people in this country. You know, the ones we never hear from, the "nobodies." I'm wondeirng if things might get so bad that many of us would have to learn how that feels. Their cries go unheard, their problems go unsolved. They have to just keep trying to get by somehow.

Do you believe poor people try to help each other out or drag each other down? I think more of the latter occurs than the former. Not trying to perpetuate fear, but how real do we plan to get on this subject?

Individual character is probably of more importance in less prosperous times. If you have it, it can pull you through.

Reading these comments has underlined for me the fact that govt. has more of a responsibility than ever to manage things responsibly, not like the wild irresponsibility we've been seeing. It underlines for me that in a populous sophisticated country like America this mismanagement could well be the worst thing to happen to the world in recent times.

Great post Donna! I also agree that everyone's situation mabe different but most unfortunately greed and avarice have runrampant in our country. What took our parents 20-30 years to acquire many in our generation want overnight! We need to wake up every day and thank God for our blessings and what we have.

many good points.....the verything that is causing our problems is the thing they did not have...credit.  That  would definitely be the key here. Pretend  you cant have any credit, and then make  your plans.......

I think one of the things we COULD learn from the Depression era generation is to change our expectations of what makes a happy life. We are struggling to pay off investments that were ruined in this real estate market, but we are determined to be thankful for what we DO have. We don't eat out much anymore, but we can still eat. We are facing possible foreclosure, but we have a roof over our heads today and our own creativity to try to bring in more income. What I learned from my grandma was that in hard times you make do, work hard, and hang on to each other!

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