On Responsibility

Despite all the chatter out in the media about the economy hitting bottom and green shoots of hope sprouting again in our collective hearts, its impact on our everyday lives continues to be acutely felt everywhere. Chances are that if you're not unemployed, you know someone who is.

While I am sympathetic to the struggles of everyday Canadians and Americans in these tough times, it seems to me that many fail to see their own contribution to their hard fall. Losing your job in a downturn is not of your fault, but not saving for a rainy day is, and until you take responsibility for that, things will not change and you'll find yourself in the same situation next downturn. And there is always another downturn.

A recent Washington Post article (For Many Americans, Nowhere to Go But Down) recounted the downfall of a blue collar family in Indiana in which both parents had lost their jobs and were quickly exhausting their unemployment benefits. The following struck me as representative of this downturn.

"Scott got a job on a paint crew at an RV plant, and by the end of 2007 his income had climbed to $53,000, more than he had ever earned. After work he was the man at the bar with the thick roll of bills, the man he had always wanted to be, buying round after round for himself and his friends. The man with "the full pocket," as he liked to say. He took his son on a fishing trip. He took his family out to eat and told them to order whatever they wanted.

When he lost his job, Scott had no savings, his primary objective always having been to earn enough to cover the rent, eat an occasional steak, feed and clothe their children, ride his dirt bike, fish, golf, play poker, buy lottery tickets, and drink Bud Light."

As much as I have sympathy for this family, I can't help but feel appalled that a family with an income that must have been nearly 6 figures (his wife was also working) had no savings. It's irresponsible to not save for a rainy day, especially if you have children. It's irresponsible to not save for your own retirement. It's irresponsible and delusional to think the good times will never end.

Of course, this family is but a small example of a bigger plague of irresponsibility that ran through much of our society, our financial systems, our real estate markets, our businesses, our consumers, ourselves.