The Pawn Stars Economy

If you have spent more than a minute watching basic cable, you may have noticed a trend. Other people's stuff is big business. The show which started the trend is The History Channel's "Pawn Stars." This show features a Las Vegas Pawn Shop where folks, from all walks of life, Pawn everything from Grandma's ring to 17th century armor. But that's not the only show that make money from other people's stuff. There is also American Pickers, a show where two men sift through the cluttered barns, basement and unmanicured lawns of Americans. Then there Auction House, where people sell their stuff to...other people. And, then finally, Storage Wars. A show where people bid on stuff that people couldn't afford to keep in a box. 

This trend shows us two things - We have too much stuff and not enough money.

There is a pretty simple reason why the average American owns five TVs yet can find the cash to pay the electric bill to keep them on. Our economy is based on trade with poorer (now becoming much richer) nations who build our stuff for pennies. Wal-Mart buys all that stuff for a few pennies more. And then we can buy them for a few pennies more than what Wal-Mart paid for them.

So we brought all that stuff.

However, there are a few things that China, India, Taiawnn, Pakistan and Vietnam can't make for pennies: Electricity, Health Care, Heart Pills, Gas and Clean Water. The price of "stuff you can't buy from China" has exploded. And things like electricity are not optional items. We need these things to help run all the stuff we buy from Wal-Mart.

That brings us back to Pawn Stars.

So in order to pay the electric bill, we take one of our five TVs and walk into the Pawn Shop hoping that this 32 inch plasma TV will be enough to cover one month's electric bill. Then the "Pawn Star" points behind him to the hundred or so TVs that he has already purchased. But he'll gladly by that TV you purchased for $400 for just $50.

$50! That won't fill your gas tank. But you don't want to haul that 32 inch TV back into your car and back into your house. You take the $50.

You don't want to be stuff rich and cash poor if the stuff you own goes down in value. Consider selling that useless stuff for stuff that will pay you back.

• Solar/Wind Generator - Electricity prices will explode. America may end up having power problems found in other countries such as rolling black outs, brown outs or power failures. By investing in a power generator, you will get your money back in the form of electricity. Yes, these generators are expensive. However, you will eventually get your money back.
• Electric Bike or Electric Kit Motor - If you are younger or more active, you can own a bike that will allow you to go up to 25 miles per hour and cruise for dozens of miles with little effort. The price of the electric bike will be offset by lower gas and auto expenses. And you will also improve your health.
• Home Garden - A home garden is not only healthy for you, but you will eventually learn how to be independent from the large food economy. If you have a spare patch of lawn, consider investing in a garden. They are cheap and you will get your money back with great food, from vegetables to fruits to beans and more.
• Water Collector and Purifier - With our crumbling infrastructure, it will be a matter of time when reliable fresh water, to some suburbs, will be a thing of the past. Also, if you live in the Southwest, there maybe huge water restrictions as rivers begin to dry out. However, for a few hundred bucks, you can get a quality water collector and purifier. You will be completely independent from surging water bills and you won't have to worry about water shortages.

The next time you go shopping, think about the stuff you are buying. Ask yourself, "How does this benefit me in the long term? Can this item pay for itself? Or pay dividends down the road?" But most of all ask yourself, "Am I going to have problems trying to pawn this off in Vegas, a year down the road?"