There is an economic downward spiral taking place in America these days. Not that I needed to point that out to you - if you are over the age of six you have heard by now that these are "hard times" (as my grandpa might say). But have you stopped to think about how long these hard times will last? Have you thought about what it is going to take to stop the downward spiral of events?

Let's look at this economic downward spiral a little closer for a second. Dr. Paul White explains it in the following way as a cause and effect event (I stole this from his blog, but don't worry, I got permission first):

• People work and receive money for their services.
• When people don't have jobs, they don't make (as much) money.
• When people don't have as much money and don't see the opportunity for more money come in, they either don't spend as much, or spend on credit.
• At some point, most people, when their income is reduced over a period of time, reach a limit of what they can buy on credit or realize it is not a wise pattern to continue.
• Eventually, people begin to "cut back" on non-essential spending (eating out, recreational activities) and also tend to slow down the process of replacing existing belongings (new technology, new clothes, furniture, cars).
• The lack of spending means businesses are selling less goods and services, receiving less income, and have to cut back expenses in their business, which includes labor. Hence, they reduce employees' hours or lay off employees.
• These people now have less money to spend.

And thus, the negative spiral of an economic downturn continues.

So what can we learn from this? It's going to take a long time before our economy fully recovers. Bummer.

But is there light at the end of the tunnel? You betcha. In fact, there's light shining all around us right now if you know how and where to look for it. The problem is that some people just don't have what it takes to see the light. Let me - or, excuse me, Dr. White - explain.

He goes on to talk about how there are two kinds of people in this economy. Both will react to the present circumstances in two different ways.

1. There will be people who expect life to be "like it used to be", and expect someone else to make that happen (largely, the government or maybe ‘big business' or the wealthy.) These people will become increasingly impatient, angry, and demanding of others. Their focus will be on economic relief programs and governmental bailouts.
2. There will be a group of individuals who take steps in their lives to make the best of a bad situation, and who will ultimately (some, not all) find opportunities economically - to provide goods, services or information that others need and are willing to pay for. Their life circumstances will probably be difficult for a period of time but they will "deal with it" and continue on. There will be a portion of this group who will find significant economic success as a result of their efforts (there are always people who find ways to make money in difficult economic times.)

The question is not whether or not you have what it takes to help stop this economic downward spiral, but rather, which of the two people you want to be. I think the six year old I referred to at the beginning of this post can figure that one out.

Change your perspective. These are not just hard times. These are times when opportunities are created, especially when it comes your finances.

What are your thoughts?