As you all know, I am a writer, not an economist.
That said, I have seen a few things in my time here on the planet, and I do understand how the economy works–or doesn’t–in general terms.
I have also learned to ignore hyperbole: nothing is ever as good as it seems or as bad as it seems. The reality lies in between and can usually be found in the daily lives of ordinary people. Do they have a sense of security and optimism? Do they see a way to improve their lot in life over time? Are they being given the resources–education, healthcare, and other public services–to boot-strap themselves from poverty or the working class into the middle class?
Most importantly, are the officials in government–elected and unelected–being responsible and, in the long run and in broad terms–working to make sure that people, companies, and nations are pretty much on an even keel? That we’re keeping it between the lines and keeping the train on the track?
Nobody can fix everything, and very few people or agencies can fix anything. But over time, leaders, ideas, policies, and programs generate positive results…if they are well thought out and responsibly administered.
That’s one area to look at and consider.
Another factor is simple math as it relates to complex finance. How long can governments service, juggle, and manipulate large amounts of public debt? Or, to be more colloquial about it, when do the chickens finally come home to roost? When is the bill for the party finally handed over to the guests?
We all know what happens to households and companies who perpetually spend more than they earn. They go bankrupt. They go out of business. Families and employees suffer. Creditors are left holding the bag. If the problem is big enough, the government steps in and saves entire industries or entities considered ‘too big to fail.’
But what happens when the ‘too big to fail’ entity is an entire government itself?
The suffering is then on a national scale, or even a global scale.
Note this article: https://www.weforum.org/stories/2025/01/public-debt-problem-davos-global/
It reports on a very sober meeting with very intelligent people talking about the fiscal issues facing the world economy.
Usually, discussions of economics make my eyes glaze over. However, what I did notice after I read this article, were the number of other news articles and interviews with government officials and economists stating that “Everything is really okay,” with regards to increasing amounts of public debt as it relates to GDP, blah blah blah.
When I hear there’s nothing to worry about, I worry. Well, not exactly worry, but I’m hyper-aware.
I share this with you after having a brief conversation with another OMG. After sharing similar concerns about global public debt, political turmoil, he offered this advice:
People better adopt this Old Money lifestyle now, because the people who do are going to be in the best position to weather the coming storm.
As I recently posted, optimism is an Old Money value. Like patience, it is a virtue.
Balance optimism with clear-eyed objectivity. Know that there is very little we can do about world affairs. We have little insight into the future, and how global events will impact our future. We are left to keep our own house in order. So let’s do that.
Prioritize financial independence.
- BGT