I can fully understand the pain of some of those who are experiencing the harsher edge of the financial crisis. There doesn’t seem to be a day that goes past without some major financial institution announcing cutbacks in staff. With friends and family in the finance industry, I can see the pain.
I’m fortunate enough to be at a stage in life where I have no debts. Unfortunately though, it’s still irritating to watch the interests rates on my savings and return rates tanking. Of course, this doesn’t even rate a mention beside real hardship. It’s not even an inconvenience for me. It’s just the knowledge that my money earns less money than it did earlier in the year. But then again, I’m a student, and I do not earn a salary. I have a scholarship at present (which is pretty small, technically it puts me below the ‘poverty line’), but given that many PhD students go over their allotted time, my savings could be my only income in the near future.
I don’t qualify for the Australian government’s handouts that are designed to kick start the country’s economy. But even if I did, I can’t imagine I’d spend it. Firstly, because even with a small income and no debts, I have more than enough, and secondly, is boosting spending power of consumers really a solution? Perhaps I’m only naive, but certain words come to mind: it’s only a flesh-wound.
Filed under: economics, experiences, observations, personal , Australia, financial crisis, handouts, interest rates, Local economies, PhD scholarships

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