2019 will be remembered for many things, from protesters in Hong Kong bravely standing against threats from a mainland government and military, to a devastating fire at the Notre Dame cathedral in Paris, a spate of mass shootings and impeachment proceedings, the outcome of which has seemed predictable from the start.
But the U.S. economy took center stage.
Through the first half of the year, some economists warned of signs a recession was near. But as 2020 dawns, clear skies seem to mark the path forward. Congress and the president reached an agreement on the new U.S.-Mexico-Canada trade agreement, and trade tensions seem to be easing with China. Unemployment this year hit 50 year lows, and all demographic groups seem to be benefitting, as Black and Hispanic unemployment rates hit record lows, as well.
This is, by many measures, the most prosperous age in the lifetimes of most living Americans, and perhaps the best economic time in the nation’s history. It’s amazing, then, that the nation seems so bitterly divided along political lines, with each side blaming the other for miseries.
Were time travel possible, a visitor from another age, such as the Great Depression or the Civil War, might think modern Americans were possessed with madness. Indeed, bitter hyperventilating in the midst of an excess in riches may be symptomatic of more than one disorder, especially that of ingratitude.
So, before the bell tolls midnight and the last sentence of 2019 is written, we suggest Americans do two things: Express genuine gratitude for their blessings, and resolve to begin using good times to better prepare for the bad, which, difficult though it may be to contemplate, surely will come.
The first should be easy. Americans have shown a remarkable ability to show gratitude during even the worst of times. Begin by studying Abraham Lincoln’s Thanksgiving Proclamation, issued in 1863 amid the suffering and death imposed by a Civil War. Contemplate what was happening and why he asked Americans to give thanks for “the gracious gifts of the Most High God ...”
Studies have shown that the practice of expressing gratitude changes a person’s outlook. As the Harvard Medical School has noted, gratitude leads to happiness. “Gratitude helps people feel more positive emotions, relish good experiences, improve their health, deal with adversity, and build strong relationships,” a post by Harvard Health Publishing notes.
The nation could use a dose of stronger relationships forged by a mutual sense of thankfulness. That should be easy during good times.
The second is a little more problematic. Human nature leads people to revel in good times without taking thought for the future, when prudent preparation would be a wiser approach. While times are good, there are cracks in the foundation of this booming economy.
One crack has to do with income inequality. While even the poorest segment of earners has seen an increase in pay over the past few years, the richest 1% has seen much more. This income gap leads to inequities that, in bad times, could boil into resentment and political unrest, ultimately threatening democratic order and exacerbating class distinctions.
But another, more disturbing crack has to do with deficit spending during times of plenty. This is a problem affecting Washington as well as individual homes.
The president and Congress just agreed on a budget deal that will add a projected $2 trillion to a national debt that already exceeds $23 trillion, and Washington is running an annual deficit in excess of $1 trillion.
Express genuine gratitude for their blessings, and resolve to begin using good times to better prepare for the bad, which, difficult though it may be to contemplate, surely will come.
The website nerdwallet.com reports that Americans’ combined credit card debt totalled $443.96 billion earlier this month, which is a 6% increase over the start of this year and a 34% increase over five years ago. This has happened despite average incomes having increased faster than the cost of living.
Credit cards make up only a portion of household debt, with mortgages, car loans and student loans also consuming large portions.
Average Americans can’t do much about overspending in Washington, but they can find ways to get their own households in order.
These may be sober thoughts on a day dedicated to parties and boundless optimism. But they make for excellent resolutions at the start of a new decade. Ultimately, they would make for a better future.