Relearning the lessons of the Great Depression

Merry Ann Frisby of the Tallahassee Democrat has an article up about how she is coming around to the way her grandmothers used to think after the Great Depression:

Both of my grandmothers died with kitchen drawers full of twist ties, rubber bands and bits of twine. Neither was impoverished, but neither could resist the siren song of a used plastic tub.

These Depression Era women also conveyed to their adoring grandchildren a distrust of financial institutions. They had both seen homes and acres of farmland repossessed by banks. My Texas grandmother’s mantra was, “Use banks, but don’t trust them.”

My widowed Tennessee grandmother preached pay-as-you-go. “Do not owe a man anything,” was her chant.

I did not understand that for decades, now I do.

Today that distrust, which I considered old-fashioned in my early years, has re-emerged in our family with a vengeance. I am also startled to discover that I have a kitchen drawer full of twist ties and a heart hardened against insurance companies, mortgagers and credit cards.

She goes on to relate the experiences she and her family have had during the current recession, and while I feel for them, I think their anger at the various companies they have struggled with are a bit misplaced–with the exception of the “other” insurance company. She describes her children as hard-working and responsible, but then goes on to explain their struggling to pay their mortgages and their credit card bills. If she said any of these children are unemployed I missed it. If that were the case I could understand. But if they are having trouble making mortgage and credit card payments they were not all that responsible, or they wouldn’t be stuck in the first place.

I refinanced my mortgage last year when I suspected I might lose my job (it’s easier to do if you’re employed, I suspect, which is somewhat counter-intuitive), so by the time I knew for sure my payments were lower already. I’ve always watched my credit card use and always paid off any balances within the grace period. I’ve been saving money as best I could for years. I don’t need to game the mortgage, credit, or insurance process. I’ve already got a financial situation I can handle.

I’m glad Ms. Frisby and her children are learning these lessons, even if it had to come the hard way. The recession will not last forever. With any luck the lessons learned will, and they will never be in this position again. For me, the lessons I already learned are just sinking deeper, reinforced by the realization of the rewards that come from being prepared.

I realize I’m bragging a little. But really, all I can brag about is having successfully listened to others who tried to teach me all of this years ago. I didn’t disregard against the “odd” practices of my mother, who grew up during WWII, I absorbed them. I can never thank my mother enough for teaching me that.

Now, it could be that I learned it better than some others have because my parents were never well off. They struggled financially, so frugality was essential. We learned the lessons because we relied on them. I’m concerned that prosperity cushions us too much and we forget we need those lessons. I don’t want my children to have it too easy to where they forget how to fend for themselves. I don’t want them to find themselves on the wrong side of the financial equation someday.

 

Getting rich quickly – It’s the new black

It’s almost as if there were millions of people out of work and looking for anything to keep themselves and their families afloat. Every day my spam box fills up with various schemes for getting rich quickly by working at home with so-n-so’s new wealth generation system. It’s even on the radio!

I have to congratulate these selfless entrepreneurs. They have found the key to easy wealth and rather than just retiring on their millions they are deigning to sell us the secret. The only way they could be any more charitable would be to just give it away! But I won’t hold my breath on that one.

No, tough times bring out the best and worst in people. The worst are out there coming up with new schemes to separate the desperate from their cash. As I’ve indicated before, I may even have fallen for one. But some should be pretty easy to see through. If these “wealth generation systems” are so wonderful, why do these people have to sell them? And why do they need to pay for bulk emailings to market it? If the results are so amazing, we should have noticed their sudden affluence and be beating down their door to get it!

But no, chances are their “system” is to tell you how to get other people to fall for the same scam you did. Fleece enough people and you can make good money too. For awhile. Unfortunately, as long as the economy stays bad I suspect many of these people will actually do quite well.

 

Are we free if we are in debt?

Karen Boroff raises the question in New Jersey Voices:

Which one of us can be free when we owe others sums beyond our ability to repay? How as a nation can we be free with billions and trillions of debt? Years ago, singer Tennessee Ernie Ford had a hit with “Sixteen Tons,” telling the tale of a miner who “owes his soul to the company store.” Each day, the poor soul got deeper in debt. That is the track on which we are traveling.

Key quote:

People who see no end to debt lose their self-reliance, almost addicted to the next round of handouts. Addiction does not free ourselves nor does it make us brave.

Is self-reliance the enemy of specialization?

I came across an interesting article on GuruFocus.com putting economics in very simple terms; ie. our individual survival depends on accumulation of energy, that specialization allowed for more efficient energy collection, and that money represents stored energy:

People are creatures of the Earth. Like any other living organisms, we need to consume energy in order to survive. In a competitive world of survival, energy sources other than the sun don’t simply present themselves to us. So we must expend our energy in order to obtain more energy on which we survive. In early times, this meant expending energy for hunting and gathering. In more recent times, this meant expending energy in farming. It is only natural that we seek the most efficient expenditure of our energy to obtain more energy. Being that we are a cooperative species, this eventually led us to the idea of specialization.

Specialization allows for people to be experts in their respective tasks. This allows for dramatic improvements in quality and efficiency. Once people decided to specialize and cooperate by sharing ideas and trading with one another, a great wave of invention and innovation ensued, materializing in the agricultural, industrial and informational revolutions.

Read the whole thing. It’s an interesting explanation and take on things.

In case you were wondering

My yearly checkup with my cardiologist went fine. Taking echo-cardiograms is becoming second-nature to me now, though I’m regularly impressed how the technician can look at the odd stuff on the screen and know what they are looking at. And as the assistant was hooking me up for an EKG I suddenly pictured myself as a cow being hooked up to a milking machine.

Anyway, the bottom line is that nothing has changed significantly since last year. And that’s good. The longer my situation remains unchanged the better. It means major surgery is not in my immediate future, and if I can hold it off long enough technology may advance sufficiently to where it will no longer require major surgery. I’m all for that. Better a nanobot injection in twenty years than valve replacement today.

So what does this have to do with self-reliance? Well, you can’t be entirely self-reliant without your health. The more you know about your health the more you can do about it. The earlier you detect problems the sooner you can deal with them–preferably by yourself and not with significant medical intervention. I’ve nothing against medical intervention, but if you can do something to keep from needing it, why not do it? Being proactive in your health allows you the most control over your medical future.

In my case it’s a reassurance to know that I’m still okay. It’s also reassurance that my current level of preventive action is sufficient. I don’t have to guess what I need to be doing. I’m doing it, and it’s working. That in itself is peace of mind.

 

Here’s to you, Doc

I like to speak badly of the doctor who had the gall to keep finding things wrong with me, but when it comes right down to it, I’m grateful. No one likes to hear bad medical news, but once you know, you can do something about it.

I should probably back up a bit. Not long after I got married I decided (okay, was practically forced at gunpoint by my wife) to go see a doctor about my allergies. My doctor didn’t just check on my allergies. He gave me a full physical, including blood work. What he found was that I had a high level of VLDL, Very Low Density Lipids, or triglycerides. Or, as the doctor explained it, you have your good cholesterol (HDL), your bad cholesterol (LDL), and your not-good cholesterol (VLDL).

He immediately put me on a diet which, if it didn’t work, would be followed up by medication. Fortunately the diet worked. I’d been eating too much sweets after getting married, and once I cut that back and started exercising more I was fine. I also lost 30 pounds I’d gained since leaving college. No biggie. Thanks, Doc!

Except he wasn’t through. The next checkup the weight loss allowed him to hear my heart more clearly, and what he heard wasn’t good. He sent me to a cardiologist, who determined I have two leaky valves. At that point I started half-jokingly threatening to stop going to the doctor so he wouldn’t keep finding things wrong with me.

The thing is, awareness is half the battle, at least for me. Now that I know, I can maintain my weight and not worry too much about cholesterol. I take medication for my heart condition which seems to have arrested the problem. It’s been nearly ten years now, and the cardiologist still thinks we may have to do something about the problem maybe twenty years from now. Every year I can put that off increases the chance that much more that they’ll have better, less-invasive procedures to fix my valves by the time I need them, or that I won’t need any surgery at all (something else will kill me first, to put it bluntly).

Knowledge really is power. I may not have liked getting bad news from my doctor, but knowing what I know, I can take control of the situation and do what it takes to make sure I’m still around for awhile.

Tomorrow I’ve got my yearly appointment with the cardiologist. Of course I’m hoping for good news. But if it’s not, I hope I’ll have learned my lesson enough to not hold it against him.

 

The family food bank

A few days ago I started talking about my parents’ basement and how much I covet it. Then I went off in a direction I hadn’t originally intended and never made it back.

There are a number of things that makes their basement ideal. It’s mostly underground and dark, but not damp. There is a lot of shelf space and floor space. It’s wired for electricity, so a chest-type freezer is in its ideal element down there. And though not entirely convenient, it’s accessible from inside the house.

Every year Mom would supervise the bottling of beans, applesauce, tomatoes, and any other excess produce from our garden. If any of the local stores held case-lot sales she’d stock up. If we could get a good deal on local fruit she’d buy several bushel and we’d put them up. We’d freeze corn, carrots, peas, and anything else we could get. Every year our food supply downstairs grew by just a little more than what we used until it became pretty much full.

Now and then after we children have moved out with families of our own we would go through some hard times. Mom and Dad’s basement was always open. We could come help ourselves–Mom would insist on it, really. It was always a blessing to have it available.

My parents were both raised on farms. Though they moved to the city not long after they married, they never forgot their country self-reliance. Mom’s grandpa was the “town doctor,” though he had no more than common sense and experience to go on when stitching up people and animals, setting bones, or whatever else needed doing. He once built a set of toy furniture for my mother from an old packing crate. If Mom didn’t remember its origins I’d never have guessed. His carpentry with leftover, low-quality wood is better than mine when I set out with fancier tools and better grade wood.

Now that I’m older I’m beginning to appreciate just how much my parents learned from their parents. I appreciate even more all the things my parents passed on to me. I’m sure there are many skills they took for granted that the forgot to teach me, but what they have taught me is considerable. That wealth of knowledge is irreplaceable, and I have to make sure I pass it along to my children.

Someday my Mom will join Dad on the other side, and chances are the family food storage basement will go away. It will certainly be missed. But the lessons that came from filling that basement will last forever. I’ll be forever grateful for the foundation of self-reliance they built for me.

I’m not rude, I’m just clueless!

I happened to be poking around in my blogging dashboard today and noticed that people have been leaving comments on this blog! Somehow in setting it up I forgot to have Blogger notify me when people leave comments. My other blogs are set up this way, and so I am used to not having to look. Well, I’ve been getting comments! I apologize for not responding, though obviously not all comments require response.

I’ve turned on the notifications now, so hopefully I won’t ignore you again.

To quote Maxwell Smart, “Sorry about that, Chief!”

 

Self reliance and architecture

My parents’ home was built in the early twentieth century and included an unfinished half basement. I remember being somewhat frightened of it as a child; the concrete floor and walls, the bare floor joists instead of ceiling, the single bare bulb in the center of the room that required you to walk into the darkness to find the pull chain before you could turn it on. Perhaps even scarier was leaving the room, when you had to turn out the light, turn your back to the big, open, dark room and make your way out again.

Today I would give anything for a basement like that. Newer houses, at least in my state, do not have basements. At least not like that. We have a split level home, with the lower floor partly below ground level, but not a storage basement like my parents had. I never really appreciated all that space they had until I started trying to build up food storage of my own.

We’ve had to get more creative. There is room in the garage, but it’s not the most ideal facility. It gets far too hot in the summer, and is difficult to get around in when we park both cars inside. We converted the closet under the stairs to food storage, but it is cramped, dark, and attracts mice too easily. We have storage under our beds and on top of cupboards. We even put storage cabinets in our master bedroom. And it’s not enough.

A basement would make all of it so much easier. I’ve heard of a company in town that builds basements underneath existing houses. I imagine it’s possible to add a storage basement underneath the ground level of our house. I also imagine it’s fairly expensive. With the current state of the economy it may well be a long time before we see that kind of money again.

So for now I suppose we have little choice but to get creative in finding ways to overcome the lack of storage space in our home’s design. Hmmm… What if we placed our bed up on top of a large cabinet? Weren’t beds you need a stool to climb into all the rage a few years ago?

 

Self-reliance is not for everyone, even if it should be

I went to a business seminar today. While we were waiting to get started we were introducing ourselves around and discussing what we did. One gentleman I was speaking with pressed far enough to find out I am launching a website centered around self-reliance. From the expression on his face I couldn’t quite tell if he had no idea what I was talking about or he merely found the topic about as interesting as he would a doctoral thesis on differentiation in lichens of the American Northwest.

Some people are perhaps fortunate enough to have never been faced with a situation where self-reliance comes in handy. In the training room of a company where I used to work was a poster that said something along the lines of, “A system backup is an activity religiously practiced only by those who have previously experienced a system crash.” However true, the implication is that people don’t appreciate the need for something until they experience a situation in which that something would have helped had they done it.

Those of us who have already seen the benefits of self-reliance tend to view people like that as “whistling past the graveyard,” or perhaps being like children who believe they are invisible if they close their eyes. But then they probably view people like me as paranoid, tin foil beanie-wearing survivalist nut-jobs. I guess it goes both ways.

Just for the record, I did not rush out and buy duct tape and plastic wrap during the anthrax scares after 9/11. I did not buy surgical masks or refuse to go out in public during the various super-flu scares of the last decade. I am not a reactionary. I merely believe in risk management. Having been through three periods of unemployment in the past eleven years, I see the need to mitigate the risk of extended unemployment through financial planning, food storage, and learning to do some of the things I would rather not have to pay someone else for during low-income periods.

So let me just reiterate. This is not a site for conspiracy theorists, apocalyptic harbingers, or survivalist loners. If those people find something of value on this site, great. They’re certainly welcome if they behave themselves, but they’re not my audience. This is a site for people who, whether or not they choose to live a self-reliant lifestyle during good times, want to be prepared for the inevitable hard times and be able to do for themselves as much as possible. It’s for people who see that there are certain risks in life worth preparing against.

It’s for people who have found that certain things work well for them and want to share what they have found with others who might find it useful also. Welcome! Come on in, pull up a chair, and tell us what you’ve found. Or feel free to pull up a chair and just listen. That’s fine, too.