Positive Effects of Financial Slowdown

The financial slowdown, that started in USA and spread to the entire world is having some positive benefits for Americans. First, they now understand that their wealth cannot continue to grow for ever. Second, they need to save for the rainy days. Americans used to save close to none prior to 2008. The US personal saving rate that was 0% in 2007, improved to 1.7% in January - November 2008, and jumped to 3.6% in December 2008. This happened as more workers were laid off, house prices plunged and the stock market tanked. If Americans save some money, this will be good for them, but may not so good if the US Financial think tank wants people to spend more so that the economy may get out of recession.

I remember a story how USA got out of recession last time. Well, long long ago, USA was in deep depression. Almost all industries, including steel, automobiles and cement closed down. No factories were running. No one was buying cars. One day, one man named Peter goes to a car dealership and tells the manager that he wants to buy car. The manager jumped with joy, but there was no car in the dealer's showroom. So, the dealership's manager tells Peter that he would have to wait as he needs to place an order for the car with the car manufacturer. The manager takes down Peter's address and tells him that he would contact him as soon as the car becomes available.

The car dealership calls the car factory and places an order for 10 cars, hoping more orders would follow. However, the car factory does not have steel to make cars. So they order steel for 1000 cars from a Steel Mill. The Steel Mill needs coal. So they order coal, and so on. In the end, coal mills, steel mills, car factories -- every sector of the economy starts working and the country comes out of recession, and the car is delivered to the car dealership. The Car factory feels so happy that they decide to give the car to Peter, who placed the first car order and helped bring the country out of recession, as a gift for free.

The Manager of the car dealership goes to Peter's house. Peter's mother opens the door. When the manager asks for Peter, her mother gets a little worried. She tells the manager that her son is mentally retarded and does not know what he is doing, and requests to please excuse him if he has done anything wrong. When the Manager tells Peter's mother that her mentally retarded son has brought the country out of recession, she does not understand anything and continues to stare at the manager.