People's economic expectations the worst they've ever been on clarkhoward.com

CLARKONOMICS: A highly respected organization called the Conference Board is known for issuing reports that usually only appeal to pointy-headed economists. But right now their reports are getting a wider audience in regular newspapers because they're so headline grabbing.

Here's the latest scoop: People's expectations about the economy are the worst they've ever been since the Conference Board's survey started decades ago. In an unusual twist, people are really personalizing their worries. It's not just affecting the "guy down the street" anymore.

A separate Bloomberg study reveals that 75% of people blame Pres. Bush for the economy's woes. Even among Republicans, there's a 2-to-1 ratio of people who say it's all Bush's fault. The truth is presidents are given too much credit when things are great and take too much blame when things go wrong.

Through it all, Clark remains optimistic for our country. We have inherent advantages. We run -- for the most part -- a clean economic system that's free of corruption. We have the rule of law. Many other places don't have either of these. We also have our entrepreneurial spirit.

If entrepreneurs listened to the naysayers when they had a new idea, nobody would ever get started. Clark opened his first travel agency in 1981 at the tender age of 25. At that time, a know-it-all who worked for Eastern Airlines tried to dissuade him. Well, Clark's business went on to boom and the know-it-all had to jump ship when Eastern collapsed.

The truth is that how we handle our wallet creates more insecurity than we need to have. You must spend less than you make -- period. Owing money to everyone is no way to live because it creates intense anxiety.

We've got to get into the mindset of de-leverage, which is a fancy term that means spending your own money instead of borrowing other people's money to spend.

Real estate developers used to be able to borrow 100% for their builds. Now it's a different story. The pendulum has swung back. Look for a decrease in the number of shopping centers, office buildings, speculative residential builds and more. This will help bring us back into balance.

For the time being, step back from the doom and gloom if you can.

What others are saying

Weak Dollar and Waste
Jered,

I doubt your still reading this by now, but your arguement that waste is leading to the declining dollar does not help your point. In fact, it only further highlights the need to manage your spending wisely. Government waste is not a Bush invention. Unfortunately, its a Republican and a Democrat problem. We have an extremely low amount of Congressmen, Senators, and Presidents (past and present) that don't contribute to the problem of government waste. So, the point is that you are the only one that is looking out for you. There will always be circumstances that are out of your control that will hurt your economic status in good times or bad. So, the only ways to counter-act that is to manage what money you do have wisely, and to work hard to give yourself opportunities so that you can increase your earning potential.
By Jason @ 07/03/08 08:10:25 AMreport abuse
Not minimum wage
Clark doesn't need to live on minimum wage to understand anything, he is right on his take of the doom and gloom attitume most people have. What these people need to do is stop using credit to spend more than their income, to buy stuff they don't need to impress people they don't even care about. If you take responsibility for your personal economy suddenly what Bush (or any other president) does, will matter less and less to your personal life and circumstances. Grow up.
By Edgar @ 06/30/08 08:20:55 AMreport abuse
Blame who
If there is one person with culpability for our economy's downturn, then it is Bush. The dollar is weak largely because of how the Executive has spent it: Paying for expensive caterers to men and women that carry rifles for a living. The dollar is weak because of WASTE. Dollars spent on war could have been invested in cheap gov-subsidized solar water heaters, or off-shore wind turbines, or even (eek!) welfare, the list goes on...
By Jered Brown @ 06/30/08 04:09:53 AMreport abuse
consolidating credit cards
Does one need to pay somebody to consolidate 6-7 credit cards already maxed out? Is it possible to obtain better average rates, especially when some are in the 20%? Thanks, Tom
By Tom @ 06/29/08 05:54:50 PMreport abuse
economy & retirement
I'm near retirement & it's very scary to watch the retirement funds with losses every month. The wealthy know how to protect their money, average
people don't. Mutual funds, IRA's,
401K's we're supposed to trust them that the money will be there when we need it.
By sam @ 06/29/08 02:34:23 PMreport abuse
Small Business in this Economy
My personal situation is great owing only utilities every month however I am now to the stage of borrowing to keep my small business afloat. It's been bad for a year and it's tough to walk backward after 5 years of gleaming success. Of course this is a familiar sad song and optimism is difficult to muster up but impertive to maintain the sanity.
By T. @ 06/29/08 09:52:17 AMreport abuse
Raising the Minimum Wage
Clark should try living on the minimum wage and then tell us about how we shouldn't be so negative. Also if there is a living hell, it is populated by people who are trying to pay of "Payday" Loans at several hundred percent interest.
Know from whence you speak.
People leading lives of quite desparation have a right to be seeing doom and gloom.
By Brian @ 06/28/08 11:51:59 PMreport abuse
The Economy
I generally agree with Clark, but can understand some of the pessimisim toward the future. My family's situation is great because we don't owe on anything except the house, and we are working to pay that down in advance too. We are less than 30, and unfortunately, we are in the extreme minority of our generation. Most of the people our age want everything that their parents spent their entire lifetime working for right NOW! For those that have been wise to save, even a downturn isn't too scary right now since they have something to fall back on. However, I am concerned that we're at a point where it is too late catch up to meet the energy demands of the country before many people in the country are hurt significantly. By the time we can actually implement many alternatives, the USA will look different, but I'm not sure if it'll be for the better or not. And though our society in general is more free from corruption than most, the number of corporate scandals we've seen proves that we're not immune to it. How will the US react when all the trillionaire oil shieks in the Middle East come back and buy up most of America? We will definitely be put to the test to see if we will hold to our values or bow to the dollar for a paycheck. But, no matter how it turns out, Clark is right, the only solution for each individual is to cut spending and save.
By Jason @ 06/28/08 06:18:35 PMreport abuse
The Economy
You Right Clarck , Iam also a big believer in the American System and Capitalism, Most af my coworkers are so pesimistic about the current economic enviroment the only thing that I advise them on dowing at this moment is to place your self in a solid financial path and by things now"Investment" because Most of America is on Sale now, it is a in economic sycle and it will pass, people tend to forget so quick about the bouble burst and September 11, and what happend after wards.
Sincerely,
Mohamed
By Mohamed @ 06/27/08 06:23:31 PMreport abuse
How To Cut High-Speed Internet Cost?
I adopted Vonage in early 2004 for business & personal phones and saved $1,800 monthly in long distance calls & calling service features. (I no longer worry about cost as minutes tick away while on hold for a long distance business). MagicJack should be a great option, too.

QUESTION: Can you recommend a reasonably priced provider for quality, high-speed internet service? We are located in mid-NC.

My cable-broadband (high-speed) internet service rates are astronomical and steadily climbing – despite their consistently high packet loss and painfully slow transmission despite claims of `7 MB`.

Although it is very expensive, I considered a more reliable fiber-optic line. However, AT&T refuses to install fiber-optics in NC residences. Verizon’s FiOs may be available here in 1 or 2 yrs.

Please tell me that there a reliable, reasonably priced high-speed internet option available – especially in the mid-North Carolina area. Thanks for your recommendations!
By Brison @ 06/27/08 02:23:05 PMreport abuse
Personal Economy
Stop relying on credit cards to bail you out. It's actually doing more damage than help. We're debtless. House, cars and credit cards with zero balances. it took us 7 years to reach this level.
By Denise @ 06/27/08 12:38:12 PMreport abuse
Personnal Economy
It really does come down to your own situation. My wife and I are doing better than I can ever remember.

I think what we need more than anything right now is a renewed optimism and a little faith that things can and will get better.

Thanks for your advice and your encouraging perspective Clark!
By Shawn @ 06/27/08 11:49:30 AMreport abuse
Econmic Expectations
Amen ! The reason so many americans are concerned about the economy is because their personal economy is in such poor shape due to poor planning and over spending. Stop counting on Visa
By Jo Sineath @ 06/26/08 05:31:17 PMreport abuse

Weak Dollar and Waste

Jered,

I doubt your still reading this by now, but your arguement that waste is leading to the declining dollar does not help your point. In fact, it only further highlights the need to manage your spending wisely. Government waste is not a Bush invention. Unfortunately, its a Republican and a Democrat problem. We have an extremely low amount of Congressmen, Senators, and Presidents (past and present) that don't contribute to the problem of government waste. So, the point is that you are the only one that is looking out for you. There will always be circumstances that are out of your control that will hurt your economic status in good times or bad. So, the only ways to counter-act that is to manage what money you do have wisely, and to work hard to give yourself opportunities so that you can increase your earning potential.

By Jason @ 07/03/08 08:10:25 AMreport abuse

Not minimum wage

Clark doesn't need to live on minimum wage to understand anything, he is right on his take of the doom and gloom attitume most people have. What these people need to do is stop using credit to spend more than their income, to buy stuff they don't need to impress people they don't even care about. If you take responsibility for your personal economy suddenly what Bush (or any other president) does, will matter less and less to your personal life and circumstances. Grow up.

By Edgar @ 06/30/08 08:20:55 AMreport abuse

Blame who

If there is one person with culpability for our economy's downturn, then it is Bush. The dollar is weak largely because of how the Executive has spent it: Paying for expensive caterers to men and women that carry rifles for a living. The dollar is weak because of WASTE. Dollars spent on war could have been invested in cheap gov-subsidized solar water heaters, or off-shore wind turbines, or even (eek!) welfare, the list goes on...

By Jered Brown @ 06/30/08 04:09:53 AMreport abuse

consolidating credit cards

Does one need to pay somebody to consolidate 6-7 credit cards already maxed out? Is it possible to obtain better average rates, especially when some are in the 20%? Thanks, Tom

By Tom @ 06/29/08 05:54:50 PMreport abuse

economy & retirement

I'm near retirement & it's very scary to watch the retirement funds with losses every month. The wealthy know how to protect their money, average
people don't. Mutual funds, IRA's,
401K's we're supposed to trust them that the money will be there when we need it.

By sam @ 06/29/08 02:34:23 PMreport abuse

Small Business in this Economy

My personal situation is great owing only utilities every month however I am now to the stage of borrowing to keep my small business afloat. It's been bad for a year and it's tough to walk backward after 5 years of gleaming success. Of course this is a familiar sad song and optimism is difficult to muster up but impertive to maintain the sanity.

By T. @ 06/29/08 09:52:17 AMreport abuse

Raising the Minimum Wage

Clark should try living on the minimum wage and then tell us about how we shouldn't be so negative. Also if there is a living hell, it is populated by people who are trying to pay of "Payday" Loans at several hundred percent interest.
Know from whence you speak.
People leading lives of quite desparation have a right to be seeing doom and gloom.

By Brian @ 06/28/08 11:51:59 PMreport abuse

The Economy

I generally agree with Clark, but can understand some of the pessimisim toward the future. My family's situation is great because we don't owe on anything except the house, and we are working to pay that down in advance too. We are less than 30, and unfortunately, we are in the extreme minority of our generation. Most of the people our age want everything that their parents spent their entire lifetime working for right NOW! For those that have been wise to save, even a downturn isn't too scary right now since they have something to fall back on. However, I am concerned that we're at a point where it is too late catch up to meet the energy demands of the country before many people in the country are hurt significantly. By the time we can actually implement many alternatives, the USA will look different, but I'm not sure if it'll be for the better or not. And though our society in general is more free from corruption than most, the number of corporate scandals we've seen proves that we're not immune to it. How will the US react when all the trillionaire oil shieks in the Middle East come back and buy up most of America? We will definitely be put to the test to see if we will hold to our values or bow to the dollar for a paycheck. But, no matter how it turns out, Clark is right, the only solution for each individual is to cut spending and save.

By Jason @ 06/28/08 06:18:35 PMreport abuse

You Right Clarck , Iam also a big believer in the American System and Capitalism, Most af my coworkers are so pesimistic about the current economic enviroment the only thing that I advise them on dowing at this moment is to place your self in a solid financial path and by things now"Investment" because Most of America is on Sale now, it is a in economic sycle and it will pass, people tend to forget so quick about the bouble burst and September 11, and what happend after wards.
Sincerely,
Mohamed

By Mohamed @ 06/27/08 06:23:31 PMreport abuse

How To Cut High-Speed Internet Cost?

I adopted Vonage in early 2004 for business & personal phones and saved $1,800 monthly in long distance calls & calling service features. (I no longer worry about cost as minutes tick away while on hold for a long distance business). MagicJack should be a great option, too.

QUESTION: Can you recommend a reasonably priced provider for quality, high-speed internet service? We are located in mid-NC.

My cable-broadband (high-speed) internet service rates are astronomical and steadily climbing – despite their consistently high packet loss and painfully slow transmission despite claims of `7 MB`.

Although it is very expensive, I considered a more reliable fiber-optic line. However, AT&T refuses to install fiber-optics in NC residences. Verizon’s FiOs may be available here in 1 or 2 yrs.

Please tell me that there a reliable, reasonably priced high-speed internet option available – especially in the mid-North Carolina area. Thanks for your recommendations!

By Brison @ 06/27/08 02:23:05 PMreport abuse

Personal Economy

Stop relying on credit cards to bail you out. It's actually doing more damage than help. We're debtless. House, cars and credit cards with zero balances. it took us 7 years to reach this level.

By Denise @ 06/27/08 12:38:12 PMreport abuse

Personnal Economy

It really does come down to your own situation. My wife and I are doing better than I can ever remember.

I think what we need more than anything right now is a renewed optimism and a little faith that things can and will get better.

Thanks for your advice and your encouraging perspective Clark!

By Shawn @ 06/27/08 11:49:30 AMreport abuse

Econmic Expectations

Amen ! The reason so many americans are concerned about the economy is because their personal economy is in such poor shape due to poor planning and over spending. Stop counting on Visa

By Jo Sineath @ 06/26/08 05:31:17 PMreport abuse

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Jun 26, 2008 -- People's economic expectations the worst they've ever been

What others are saying