Give economy credit; future happens later

By David Zizzo

Published: October 9, 2008

America’s attention lately has been riveted on a drama that has been building for some time. However, when "Dancing With the Stars” is not on, America has been focusing on other things. The economy, for instance.

So, it’s a good time to brush up on how the American economy works.

The economy is a complex system that begins with consumers and businesses on Main Street, the vertebrae in the backbone of America, exchanging labor, goods, money and e-mail with each other. Businesses buy more goods, pay workers and everyone puts leftover money, known as savings and profit, in banks or investments, helping the economy grow.

Much of this money from Main Street works its way to Wall Street, where people yell at each other for several hours a day, then buy yachts and Lamborghinis and chocolate desserts covered with flecks of 24-carat edible gold. Much of the money also goes to Capitol Hill, where hundreds of people wearing red and blue ties yell at each other for several hours a day, then buy bridges and battleships and the support of Main Street.

When Wall Street people run out of money, they travel to Capitol Hill and ask the tie people for more. When the tie people run out of money, they print more and ask people on Main Street for $700 billion.

When the Main Street people don’t have any more money, America turns to credit, the kind where you spend money you don’t have. Credit is handy because it allows you to get things now rather than wait. It makes things cost more, especially years from now when you’ll have to pay for stuff you got years ago at the same time you’re trying to get new stuff.

Another nice thing about credit — you don’t have to worry about it now. The future doesn’t happen until later.

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