Dollars & Change: 5 Reasons Why Americans Should Not Lose Hope

Given the flurry of depressing financial headlines recently, many Americans are not without good reasons to feel down in the dumps about the economy and the nation in general. The recent US debt ceiling debate only seemed to accentuate many of the frustrations that Americans have to deal with on a daily basis. With the tides of rising unemployment, rising food prices, and rising gas prices, it can get easy for people to lose hope in not only their country but the rest of humanity as well. I believe that there are substantial reasons to not lose hope in America. Though the situation may appear to be dark now, that does not mean the future is absolutely bleak. Yes, things may get worse in the short-term, but life goes on. This too shall pass. So much of our destiny depends on what we do today, and so much of what we do today depends on our present attititude. In this way, pessimism can work against the US. Pessimism can sap the motivation of individuals to work for a better life. I am not suggesting that we should believe that tomorrow the clouds are going to part, the sun shall shine forth, and the US economy will be glowing in prosperous radiance again. But a little optimism can go a long way...especially in an economic downturn. Below are five substantial reasons why Americans should not lose hope.

After all, this is America. When people hear of "the red, white, and blue," they're not thinking about the Dutch, the French, or the Russians; we are the red, white, and blue. We invented everything from video games to bubble gum to the atomic bomb. We are the home of Hershey's, Coca-Cola, and McDonald's. We invented football, basketball, and baseball, for heaven's sake. Who else could the world thank for the Internet if it weren't for us? Whether we appreciate it or not, the United States of America is the world's beacon of greatest ingenuity, innovation, and liberty. People may say that what happened in Greece is coming here, but that is what is great about America: many of our ancestors came to America seeking a life of peace to escape the nonsense & violence going on in Europe. We are people that desire peace, not conflict. Many of our ancestors lived through the Great Depression, two world wars, and numerous other struggles in this great land. They made it through, they persevered, they prospered, and so will we. America is greater than to let its ingenuity die out owing to some financial crisis (even a global one). America has been in far worse situations than ours today, and America has come out on top.

The global financial crisis is driving Americans to learn new things, take on greater problems, and find better ways of doing things. Though the unemployment rate is 9.2%, many Americans want to be productive. Even if it means working a job with a lower wage than accustomed or working odd hours, Americans want to work hard and be productive. If success is what happens when preparation meets opportunity, then it is not hard to see success in America's future. For right now, Americans are taking the time to work harder and get smarter while we wait for the next best thing. The next best thing -- that's what America's all about!

The US may be frustrated with its politicians today, but that is what is great about our political system: we can vote them out in two to four years. We don't have to be stuck with our politicians for the rest of their lives. Our political system is designed to absorb and deal with change. Who knows what the political atmosphere will be like two to four years from now? Even if the US grows discontent with Congress and the White House in years to come, change may very well be on its way soon enough.

American society is becoming less obsessed with the bureaucracy and red tape that has slowed this society down for the past couple of decades. Americans are beginning to realize what really matters in life. Rather than being mandated to drive through rush hour every day or work 15 hours per day by the state, American workers can respond to their situation by making quality economic decisions. More Americans are realizing that life is not about who has the most toys or who has the shiniest car. All over the country Americans are stepping up to help their fellow citizens. Americans are getting tired of some of the nonsense that they have had to deal with over the past few decades, and are now prepared to make their say by voting in the ballot box, or in the alternative, voting with their feet or their wallets. In short, American culture is undergoing substantial transformation in the direction of liberty and self-determination, and this is a good thing. Let freedom ring.

In a country of over 300 million citizens, it is understandable that not everyone is going to agree 100% of the time. Nevertheless, save for a handful of battleground states such as Ohio, Florida, or Virginia, ideological sides are digging in geographically by state. This is a good thing because it allows for states to choose their own self-determination according to their community values. Given geographical differences, it makes sense that the interests of New York may be very different than the interests of Wyoming. By permitting ideological positions to separate by virtue of state boundaries, liberal-progressives can seek their ends in their own liberal-progressive communities and conservatives can seek their ends in their own conservative communities. If citizens become discontent, they can change their geographical position, i.e. citizens can move. Rather than the entire country falling prey to some policy experiment, each state can be permitted to exercise its own experimental policies. Whoever's experiments succeed will have that much greater of an advantage, and if experimental policies do fail, then the entire country will not be at risk. In the end, in the land of the truly free, there is no end to innovation, growth, and progress. Let us say that we have two systems that are by all other characteristics equal; one is free and one is not free. All other things being equal the system that is free will always surpass the system that is not free. This is because proper growth and innovation comes about from liberty. In the US today, there are a lot of reasons to remain hopeful despite the dire news headlines. It's important that we remain hopeful and optimistic; this is America after all.

Traders who believe that America's better days are in the future should consider the following trades:

Traders who believe that America's better days are in the past and that the US is approaching financial Armageddon should consider an alternative strategy: