Over winter break I watched a show on HGTV called International House Hunters. An article in the New York Times reminded me of it and got me thinking about it again.
The show features couples from all over the world looking for vacation houses in other countries. The couples have a wish list: what they want in the house (a view, how many bedrooms/bathrooms, type of building, amenities and a budget.
But it is strange to think that the American couples even have budgets the way they are looking for a house in a recession. They want luxurious getaways with large closets and kitchens, and of course enough room for all of their friends.
How are these people thriving so much, while others are doing so poorly? I just thought that the current state of the economy had an effect on everyone. Are some people just not feeling it as badly as others? Are there different rules for the rich?
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Interesting question. I never thought about it either. I took it for granted that all persons were affected in some way or the other by this recession. But then again... economics teaches us that the economy is cyclical. Maybe these couples have been saving to buy a house for a number of years and they are determined to get a good house despite the exorbitant prices. In a recession sometimes prices of houses also fall so... just maybe... these houses were sold at an unusually low price.
ReplyDeletePerhaps these people have been affected by the recession, but they were just so well off prior to the recession that,even with the recession they are still able to afford such luxuries. (A)
ReplyDeleteTo answer the first question Christine proposed, I do believe that some people are not hurting as badly as others in these tough times. For example, you take a look at professions in the law and medical fields. People who are lawyers and doctors are not hurting as bad because there is always room in the world for one more doctor or lawyer. There is always a high demand for them, because we need doctors to care for us and lawyers to help defend us. There is a necessity for these people because there services are needed everyday. Because of this continuing high demand for them, they are able to thrive even in this recession. I am not saying all of them, but I would have to figure a good portion of lawyers and doctors are well off, even in this day and age. (A)
ReplyDeleteI think there are definitely different rules for the rich. I remember hearing a quote from a Wall Street exec after he found out he wasn't getting a monster of a bonus saying, "$500,000 a year really isn't a lot of money". Are you kidding, buddy?
ReplyDeleteI guess this all goes back to the standard of living. I don't doubt that these people earned their money through hard work and smart investing (unless they got it from Mom and Dad). However, once you earn six figures it's probably hard to empathize with people who have to scrimp and save to make a living.
People simply become accustomed to a certain standard of living. In order to maintain that, we went from a nation of savers to a nation of borrowers. It was, and still is this resistance of giving up the things we love and are used to as the things that create the higher standard of living that perpetuates the problem.
ReplyDeleteNearly everyone can afford to make another sacrifice -some more than others-it's just that we're not yet ready to willingly settle for cheaper shoes.
I am not terribly brilliant at economics, but I as I understand it, part of the reason we are in this recession is because people made money off the economic ignorance of the everyday person. So yes, there are definitely people who are still doing just fine. Did you notice how quickly the stimulus money loaned to banks was returned; safely within the time frame that allowed them to keep their salaries and bonuses. Huh, looks like there's still money out there after all.
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I definitely think that not all people are equally as affected by the current state of the economy and a lot of that hangs on what type of job one has and how secure it is. Depending on which sector you work in it is possible to make more money during a recession. My host-father last year in Germany is a bankruptcy lawyer and business was booming in the spring for him. The bad economy had made his business more profitable. I think also from family to family in the US it varies on who is bringing in the income and where you live. My family has cut back on expenses, due to two daughters in college, but overall our habits were not a reflection of the economy, but neither of my parents are in a position that would be threatened by job loss or drastic pay cuts. I think also a lot of people are optimistic that things will get better soon, so they are not being as wary of the bad times as perhaps it might appear they should be.
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Actually I'm wondering about the effect of recession on people. Rather than producing equal influence on everyone, I guess it's more like increasing the gap between the rich and the poor, and someone are still affordable for those luxurious goods.
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