Frugal Homesteading Blog

Is our economy headed for a recession, or not? This question is being debated by economists, investors and families at kitchen tables all over our country.

Ironically, a recession is certain only in hindsight; when it’s just beginning, nobody really knows for sure whether it can be called a recession yet or not.

Dave Ramsey insists we’re not in a recession, the sky is not falling, and even yelled at a caller on his show who dared to suggest our country is facing tougher economic times. He says we have safety nets in place to prevent an extended recession or economic depression. According to Dave Ramsey, “Our economy is very resilient.”

But other sources disagree. A UK news site reported that a central bank body warns of possible Great Depression. This article noted that we could be facing an economic crisis of proportions not seen since the 1930′s. This echoes the title of a book I spotted on Amazon: The Second Great Depression: 2007-2020.

News with Views asks, Do you have a plan? In this sobering list of articles related to the current economic climate, there are several particularly bad headlines. For instance, credit card debt in American households has soared to unprecedented heights. Americans are also falling behind on basic utility bills. Author Devvy considers the stimulus checks “insanity” and counsels her readers to get their finances in order–now. She hints at an uncertain, and not pretty, future for the economy and our country.

Personally, I think we’re in trouble. Anecdotally, virtually all middle class families I’ve talked to are feeling the pinch. Higher fuel prices, rising grocery costs and job losses are taking their toll. For many, they were on shaky footing economically already. These final straws will break the proverbial camel’s back for many households.

Extreme frugality is back in vogue. We don’t mind giving up vacations, large comfy vehicles and McMansions we couldn’t afford anyway. Some of us, myself included, have never experienced these to begin with. We just want enough to pay the bills and keep food on our tables. For so many families, just enough is plenty.

What about your family? Does this feel like a recession and if so, what are you doing to prepare for bad economic times?