As a result of this erroneous mindset, some citizens are more likely to embrace the proposed tax cuts out of fear. “People are afraid and feel like their own economic situations are very fragile,” said Hedges. “Their sense of connection to the broader public good is overwhelmed by their own economic conditions.”
Yet their own economic conditions are exactly what citizens should be focused on. It is a well known fact that the abuse of credit in the form of mortgages, and consumer spending greatly contributed to the economic meltdown. But even with this knowledge families are having a hard time adjusting because, as Hedges said, “credit may seem like the way to pay ongoing bills,” in the face of unemployment.
Therefore, one of the solutions seems to be finding a balance between spending and saving. “I think greater saving by households can help with future downturns,” said Hedges, “but not spending will have an effect on the current economy” such as slowing its recovery.