In 1994 a book titled The Death of Common Sense: How Law is Suffocating America written by Phillip K. Howard was published. Howard’s essential point from this book was to describe how bureaucracy and technicalities have grown to dominate the legal profession and public policy. Common sense, he argues, often is jettisoned by lawyers and judges in favor of finding technicalities that are not always in the best interest for all parties involved. He cites many examples throughout his book that illustrate this point of how technicalities and red tape prevented the intervention of common sense.
Common sense is a line of thinking that is generally understood to mean a social norm regarding certain topics. For example, a common sense approach to healing a problem related to sore feet would be to examine whether or not shoes are appropriate for the feet. Along the same line of thinking, in order to purchase a new pair of shoes, one would assume that the consumer making the purchase would do so with money that he or she already has.
The idea of common sense when used to describe such a line of thinking has long since died along with those who grew up understanding this as a way to live life safely and thoughtfully. The area in which this is especially true is economics. In the economic crisis that ballooned in 2008, plenty of blame was assigned to various people and organizations. The reasons for the collapse are very detailed (too long to list in this post), but the overriding theme was one of a lack of common sense.
People of the so-called “Greatest Generation” experienced economic turmoil that dwarfed the current economic strife. While they were in their childhoods and adolescent years, unemployment and inflation were incredibly high. The “Greatest Generation” grew during this era and saw what life was like with the bare essentials. They also saw how the uncertainty of how to pay the next month’s rent affected the daily spending habits of the American public.
People of this generation grew up with a keen understanding of the distinction between what was a “want” and what was a “need.” They carried this principle with them as they grew into adulthood after World War II. In the late 1940s and into the 1950s, they had their own children. This trend of the baby boom was reflective of the economic tide as well. The economy was healthy, jobs were available, and the financial comfort level of the average American household was much higher than it had been when they were younger.
The concept of purchasing a home became much more commonplace. Buying a second car for ease of transporting a household was no longer an absurd purchase. Televisions, additional appliances, bicycles, and other luxury items were rapidly increasing because the people could afford to buy them. The children borne to the Greatest Generation, the Baby Boomers, saw this as they were growing and enjoyed the life of comfort that they had as children.
When the Baby Boomers became adults, a new wave of culture also began to dominate the United States. This culture was a renewed sense of individualism and it leaped from the shoulders of the comfortable 1950s. They had grown up enjoying the comforts of their own home and two cars. This mentality was in part responsible for the idea that they needed to purchase a home. This occurred and people were purchasing first homes at much younger ages than their parents had. The children of the Baby Boomers also grew older with a similar mentality.
The children of the Baby Boomers are the people who are purchasing their first homes now. This appears to be fine on the surface, but it is different from the way the Greatest Generation purchased their homes. The Greatest Generation was full of people who were reluctant to purchase a home until they had the assets to back their purchase. They had grown up in the financial strains of the Great Depression and knew that taking a huge risk for the benefit of owning a home was not worth the cost of possibly not being able to pay for it should difficult times occur again.
This concept of buying a home or car with a loan dominates contemporary society. Considering the environments in which people are raised, this is no surprise. The concept of renting a home as opposed to owning a home raises a disparity in social status. Two people sharing one car is not the social norm. Would it not be more comfortable to just have two cars?
Amongst all the finger-pointing that has occurred in the wake of the current financial crisis, many Americans have neglected to point the fingers at themselves. Did they really need to buy that $220,000 first home when they are in the second year of a career making $45,000 annually? Did they really need to purchase a car with no down payment? Did they really need to buy that new plasma screen television when they were already paying the minimum payment on their credit cards? The concept of “buy now, bill me later” has led to the current economic mess.
Americans will learn from this and hopefully take a lesson from the Greatest Generation. In his Inaugural Address, President Barack Obama stated “In reaffirming the greatness of our nation, we understand that greatness is never a given. It must be earned.” This is a worthy sentiment that Americans must embrace. The Greatest Generation understood it. Perhaps instead of pointing the fingers at Wall Street, lending institutions, and the government, people will heed President Obama’s statement that greatness is not given, but earned. Home ownership and the second car should not be a necessity for a 22 year old. Financial responsibility, sound judgment, and a renewal of common sense should instead be a necessity.
Common sense is a line of thinking that is generally understood to mean a social norm regarding certain topics. For example, a common sense approach to healing a problem related to sore feet would be to examine whether or not shoes are appropriate for the feet. Along the same line of thinking, in order to purchase a new pair of shoes, one would assume that the consumer making the purchase would do so with money that he or she already has.
The idea of common sense when used to describe such a line of thinking has long since died along with those who grew up understanding this as a way to live life safely and thoughtfully. The area in which this is especially true is economics. In the economic crisis that ballooned in 2008, plenty of blame was assigned to various people and organizations. The reasons for the collapse are very detailed (too long to list in this post), but the overriding theme was one of a lack of common sense.
People of the so-called “Greatest Generation” experienced economic turmoil that dwarfed the current economic strife. While they were in their childhoods and adolescent years, unemployment and inflation were incredibly high. The “Greatest Generation” grew during this era and saw what life was like with the bare essentials. They also saw how the uncertainty of how to pay the next month’s rent affected the daily spending habits of the American public.
People of this generation grew up with a keen understanding of the distinction between what was a “want” and what was a “need.” They carried this principle with them as they grew into adulthood after World War II. In the late 1940s and into the 1950s, they had their own children. This trend of the baby boom was reflective of the economic tide as well. The economy was healthy, jobs were available, and the financial comfort level of the average American household was much higher than it had been when they were younger.
The concept of purchasing a home became much more commonplace. Buying a second car for ease of transporting a household was no longer an absurd purchase. Televisions, additional appliances, bicycles, and other luxury items were rapidly increasing because the people could afford to buy them. The children borne to the Greatest Generation, the Baby Boomers, saw this as they were growing and enjoyed the life of comfort that they had as children.
When the Baby Boomers became adults, a new wave of culture also began to dominate the United States. This culture was a renewed sense of individualism and it leaped from the shoulders of the comfortable 1950s. They had grown up enjoying the comforts of their own home and two cars. This mentality was in part responsible for the idea that they needed to purchase a home. This occurred and people were purchasing first homes at much younger ages than their parents had. The children of the Baby Boomers also grew older with a similar mentality.
The children of the Baby Boomers are the people who are purchasing their first homes now. This appears to be fine on the surface, but it is different from the way the Greatest Generation purchased their homes. The Greatest Generation was full of people who were reluctant to purchase a home until they had the assets to back their purchase. They had grown up in the financial strains of the Great Depression and knew that taking a huge risk for the benefit of owning a home was not worth the cost of possibly not being able to pay for it should difficult times occur again.
This concept of buying a home or car with a loan dominates contemporary society. Considering the environments in which people are raised, this is no surprise. The concept of renting a home as opposed to owning a home raises a disparity in social status. Two people sharing one car is not the social norm. Would it not be more comfortable to just have two cars?
Amongst all the finger-pointing that has occurred in the wake of the current financial crisis, many Americans have neglected to point the fingers at themselves. Did they really need to buy that $220,000 first home when they are in the second year of a career making $45,000 annually? Did they really need to purchase a car with no down payment? Did they really need to buy that new plasma screen television when they were already paying the minimum payment on their credit cards? The concept of “buy now, bill me later” has led to the current economic mess.
Americans will learn from this and hopefully take a lesson from the Greatest Generation. In his Inaugural Address, President Barack Obama stated “In reaffirming the greatness of our nation, we understand that greatness is never a given. It must be earned.” This is a worthy sentiment that Americans must embrace. The Greatest Generation understood it. Perhaps instead of pointing the fingers at Wall Street, lending institutions, and the government, people will heed President Obama’s statement that greatness is not given, but earned. Home ownership and the second car should not be a necessity for a 22 year old. Financial responsibility, sound judgment, and a renewal of common sense should instead be a necessity.
