Our Economy Works Like A Napless Three-Year-Old

As the markets continue their downward spiral and my husband's 401K gets closer to being a 201K, I can't help but think that all of our economic lives depend on a system that resembles the brain and emotions of a child.  Our markets run on basic instincts and fears, with little thought about the future and consequences.  Everyone is just worried about themselves.  A system has evolved over time that puts our money in the hands of people who can't see past the next few days, sometimes hours, who panic when those around them are panicking. 

I've set up rules for my kids.  I do it for their own good, and the good of the world that they will someday be unleashed upon.  It's a difficult position to be in, because I desperately want my kids to love me, but in the short term they often hate me when I give them punishments.  So, I'm trying to think long-term, to help them to grow into happy, healthy, productive adults.  Our government, however, acted like one of those moms you see on Super Nanny, who wants to be her child's best friend and gives her little princess whatever she wants in exchange for love.  When the banks and mortgage companies lobbied against the very laws and regulations that would have saved them from this disaster, instead of showing tough love, the government said "Please be our friends, we won't make you do anything you don't want to do."  If you let your children do anything they want and don't give them any rules, don't be surprised when they steal your purse and spend all of your money.

When my kids' behavior is out of control, my first step is to give them a warning.  Like the warnings given by so many politicians and economists over the past year, my kids often ignore these, thinking it really can't be as bad as it seems, that everything will work out just fine.

Often I try to soothe the kids and calm them down, letting them know that everything will be fine if they just slow down and think before they act.  The president has been trying to do this, but nobody seems to be listening.  The problem is he waited until they were already in full-blown tantrum mode.  The traders weren't hearing a thing he was saying at that point.  I try to head things off before they get to the point where my kids have lost all control.  I look for the signs that things are going downhill and I try to get my kids to stop and think.

Then, if they continue to misbehave, I have to put them in a time out.  Our government had to do this after September 11th, to keep our economy from crashing completely, and there's talk of doing it again, of closing the markets for a few days so that everyone can take a break and get some perspective.  A national time out.  Do we get a hug when it's over?

We're letting our savings and retirement plans be run by people who have only their own best interests in mind.  And we don't seem to learn from our mistakes.  Sure, the numbers will eventually go back up, but for people who are retired, living off of their 401Ks right now, they don't have time.  They've just lost that money.  So there will be casualties, but we'll eventually recover, and then more than recover, and forget all about this until the next time.  Until somebody applies some tough love, we're never going to learn.

This is an original post to NYC Moms Blog. Amy also blogs about parenting in Brooklyn, blogging full time without making any money, and keeping herself sane and comfortable at Selfish Mom, and attempts to keep one step ahead of the stalkers and paparazzi at  Filming in Brooklyn.