Mr. Money Mustache talks about how he essentially believes that since we hit a recession and that historically the economy goes up and down, we will be booming again, which I believe as a well documented theory because in my opinion if you look even back to the late 19th century-early 20th century, you can see a clear pattern of when we fall on our face economically, we get right back up and when we boom, we collapse. We hit the industrial revolution but monopolies and trust laws made things difficult for small firms and markets in each business, so we saw a decline in economic growth for the next couple of decades until the first World War, when we sparked one of the biggest phases of economic growth in our nation's history, we had the roaring 20's when the economy was booming only for the stock market to crash and for us to hit the most severe depression we have ever seen. The part of history that pulled us out of depression was the second World War, when like the first world war, we saw a huge economic boom that lifted us to prosperity, the momentum carried through the 50's with the implementation of interstate highways that made traveling easier and gave many people full time jobs. We went off the gold standard and the Reagan tax cuts gave us significant up and down happenings through the economy, then George H.W. Bush put us into debt after we had a surplus and then John Kasich as the House Budget Committee Chairman improvised a budget that had us at a 5 trillion dollar surplus and the economy was booming. The Bush tax cuts crippled the economy and we went into recession, in which we are still trying to recover. That is simply the point that Mr. Money Mustache is trying to make,
He discusses unemployment, dating back to 1947 and what to do in a booming economy and what to do in a bust. In a booming economy jump into an expanding company and work to get a raise to maximize your earnings, don't live an overambitious lifestyle and make sure to safely invest. When the economy is in the tank, maintain your job status and possibly downgrade to a more poor house market because expensive houses typically fluctuate the most difference in price stability.
I think its strengths lie in the fact that he expresses his personal opinion as to how you, the consumer, can benefit from a boom but also advice on how to deal with a situation similar to 2008. I think he also does a great job demonstrating facts and statistics. I didn't necessarily find a weak point, however I would have like to see more economic theory rather than just a personal opinion. I think this information is extremely useful and something to keep in mind, especially when things are going well that we don't get carried away and make irrational economic decisions that we ultimately regret.
|Image from the article 'The economic boom is here to stay'|
My article: http://www.mrmoneymustache.com/2013/05/07/how-to-prosper-in-an-economic-boom/
The Economic Boom is here to stay: http://www.washingtonpost.com/news/wonkblog/wp/2015/02/02/the-economy-boom-is-here-to-stay/