Opinion |

Op-Ed: The bright side of the recession

By Tyler Francke

Posted on Thursday, April 23rd, 2009, 12:58 am

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“Over.” “Hammered.” “Crisis.” “Dragged.” “Suffers.” “Slams.” “Sting.”

As I peruse the headlines of major news sources during a Google search of “recession,” these are some of the words that jump out at me. It’s not surprising, considering the negative attitudes that have surrounded the discussion of the economic downturn that the Congressional Budget Office has called “the worst since the Great Depression.”

Scary huh? However, before stockbrokers start leaping off Wall Street buildings or sharecroppers begin migrating westward, “Grapes of Wrath” style, let’s look at the situation honestly. Is it really that bad?

Well, the economists share differing views. But one thing is certain: The negativity isn’t going to help anything. Pessimism is contagious, and Chicken Little investors and consumers who are too afraid to spend money will only prolong the world’s financial woes.

Having trouble finding the silver lining? I’ll do my best to help. First of all, the recession is providing a sobering wake up call for America’s consumers, and the snooze button is finally broken. Spending money is good, but spending money you don’t have is bad. The cold clutches of debt are horrible, and if we as a nation rely less on credit cards, we will be happier and have better control of our finances and lives.

In the same way, the recession will hopefully force restraint back into the federal government. America has been living beyond its means for too long, and it shows as our $11.2 trillion debt continues to increase by about $4 billion a day. The inevitable cutbacks in social programs, although painful, will teach political leaders a few lessons about creating balanced budgets.

The tougher business climate will also remove some of the bad practices that have plagued our country for decades, like CEO salaries hitting up to 500 times those of their workers. Creativity, dedication and honest hard work will be encouraged as business owners realize they must rise to the top or let their company die.

On a more personal level, some are struggling as unemployment rises. Sacrifices will be needed to get by, especially for those who have families depending on them. But this, too, is a valuable life lesson. The tighter our budgets get, the more we will realize how little we need money to be happy. We will come to appreciate the truly important things: love, faith, humanity, and friendship.

The legendary economist Joseph Schumpeter popularized the term “creative destruction”: Innovation and entrepreneurship sustain long-term economic growth, while obsolete businesses and established practices are demolished to make way – out with the old, in with the new. This process is rarely smooth and painless. Too many mistakes were made in the American economy and some of those mistakes are being weeded out by the same kind of natural selection discovered by Darwin. A recession had to happen, and it’s going to make our nation stronger.

Here in Orono, we have much to be thankful for. The busy semester is nearing its end. It’s finally warm enough to put away the winter coats for a few months, and gas isn’t going to hit four bucks a gallon again this summer. And the recession? Some experts say they’re seeing signs that its end is coming soon too.

Tyler Francke is a junior journalism major.