We hear a great deal about the economy these days, especially about the rate of inflation and the potential for it to cause a major recession.

It’s been an historically bad year for investments, one that might go down in history as a year similar to 1929. It’s not a good time to have money in the bank but a limited income.

Even people who invest conservatively have lost significant percentages of their net worth, up to about 15 percent.

That’s because it’s a rare time in history when both the stock market and the bond market are struggling. Experts are paying attention to where the market has been in the past, but it’s hard to say whether that’s a good indicator. The situation in 2022 involves uncharted waters. We’ve never seen these circumstances because we’ve never before had the after effects of COVID.

There’s a concern for investors at any age. Young ones are having a hard time getting started. Those slightly older have seen many of their gains from recent years erased.

It’s probably worst for investors who are approaching retirement. What should have been some of their best, most asset-enhancing years has coincided with an historic downturn.

My generation (Generation X) has always dealt with disadvantages concerning economics. Many of the developments over the past 50 years have been driven by the baby boom generation, and Generation X has been left with limited opportunity as it follows in its path.

As baby boomers began to buy houses, they fueled a strong demand and put America on a path toward rapidly increasing home prices.

When they became entrenched in many of the best paying jobs in business, finance, academics and other fields, it led to limited advancement potential for younger professionals. There were fewer good upper-level openings.

Now the economy is struggling as a result of post COVID spending. Most people stayed home during the pandemic and often worked from home. They didn’t get out much. They didn’t spend.

In 2022 there’s a desire for travel, entertainment and consumer goods. Many people aren’t saving at all. They operate on the assumption that if you have extra money it might as well be spent.

That’s led to higher prices and worsened the trend toward supply chain issues. Sooner or later it’s expected that people will cut down on spending, which could slow the economy and end positive trends such as recent job growth.

The volatility in 2022 is proof that America in the 21st century has become too corporate, too dependent on large business structures.

There’s a need for a local and regional component, especially in the retail market. Historically that’s been a dependable backbone for business communities, one that could still prove valuable.

The question arises about whether or not to use government to manage the economy. Progressives are in favor of higher taxes on corporations and the wealthy, with the idea that more money could be placed in the hands of average people.

Others say we should leave well enough alone, let the economy take care of itself and expect that each individual will manage personal finances in a practical way.

As we decide how far to go with regulation, it’s important to ask how much the life savings of average people should be exposed to risk. Nowadays the only real option for retirement accounts is to have them tied to the stock and bond markets.

There used to be pensions. In the past people were able to generate good amounts of interest from Certificates of Deposit. Now there’s much less financial security.

One thing that hasn’t changed is the need to plan for a rainy day. The only difference is that it’s now a question of possible downturns in the economy as well as the potential for unforeseen expenses.

It’s never been more important to make smart decisions about what to buy and when to hold off on a major purchase.

A person with high debts as a young adult is less likely to ever reach true financial security in retirement. It’s more likely if we know how to live within our means.