Good advice now: bad soon.
This is the time of the night when I either talk economics or politics. And politics is disconnected from real life. As is this comment.
Now, before I start, in a social welfare state, this is sort of good advice. It is not great advice: the article it is based on was more conventional, and I will comment on it later. But if you have a generous welfare state and no conscience, then this is not a bad set of tactics for right now.
When the going gets tough, the tough get FREEBIES.
The author makes it all SO HARD: Be frugal, spend less than you make, drive a clunker, don’t borrow money from Guido and Vincenzo, don’t eat out at expensive restaurants, have beans and rice three times a week and those are the ONLY MEALS YOU ARE ALLOWED! How much fun is that?
I have a suggestion: Lose your job, sit on your assets at home, drink beer and collect 99 weeks of unemployment, sign up for EBT & SNAP benefits, apply for SSDI (get a good lawyer!) and have Doritos and Grolsch for supper as often as you like. Need to talk to your lazy unemployed welfare bum friends? Get an Obama Phone–it’s your birthright as a Poor Person By Choice. Don’t forget to vote for more free T-bones and Supreme 5-Cheese Pizzas with Sausage, Pepperoni and Anchovies.
If you need cash for lottery tickets, go to the store and spend all your SNAP benefits for Delmonico steaks. Sell these around your neighborhood for half price and Voila! You can win the lottery and buy as much cigarettes and liquor as your lifestyle requires.
If this doesn’t work out, you can get an Obama Student Loan and go back to school to learn how to turn Sudafed into popular recreational compounds that people will pay you handsomely for. All it takes is a little drive and persistence. And a lot of sheep willing to pay for your lifestyle.
This is good advice only because the US is a zombie state.. The second it dies, and it will, because you cannot borrow a large proportion of the world economic output every year to support this kind of feckless lifestyle forever, this is the worst possible advice.
When the money stops, the welfare payments stop. Without welfare payments you will not be able to buy the Sudafed to make methamphetamine, let alone sell it: for all will be poor.
If the money half stops — the US avoids default by sliding the real inflation rate to around 25% a year — anybody on a fixed income is not going to able to afford anything but beans and rice.
Unless you have been smart enough to disconnect from the system. So pay yourself first. Live frugal. Brown bag. Put your credit cards in the freezer if you cannot pay them off this month. (I disagree with the main article in that you should pay your savings to yourself — as they suggest — but I suggest hard goods not savings. Gold is good, silver is better, but stable currencies and gilt bonds in said stable currencies earn you money. The stable currencies at present are appreciating: the Kiwi, Aussie and Canuck). Keep your job. Learn how to garden. If married, discuss how to live on one income and support one of you learning housekeeping skills.
IF you own a mcmansion, downsize now (while there is a bigger fool that will buy it). Think older, classic, repairable, and analog — things you can get repaired, that you do not need to throw away. Live in towns where the older and analog things are valued: preferably where you and your family can walk to work and to the shops.
Do not rely on the government. The state only loves itself, and will casually throw you and your family onto the scrap-heap.
Oh, and stay away from those victimless crimes the commentator alluded to. Selling drugs, gambling, and sex. They all shorten your life, and destroy your soul.