Sunday, January 27, 2008
Economy
Lately, I've been hearing so many people talk about the downfall of our economy. I'm really worried about what is happening in America today. We are no longer the strongest nation, economically. Instead we're having a steady downfall that we must recover from. I recently heard someone discussing the White House's plan to help the situation. From what I understood (which may not be correct in full), the White House plans to send out money to workers and homeowners, to help boost their income for the year. However this seems to me like a small band-aid on a big wound. This will only temporary help out workers and homeowners. Unless these people really understand money and investing, I don't know if they will take advantage of this luxury, and put the money to use. I hope to learn more about our economy and this dilemna we're currently a part of. I'm sorry if this information is not all correct. Leave me a comment if you know this more in depth!
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3 comments:
I'm not too informed on the situation with the Federal Gov't giving out subsidies, but from what I know about the economy it probably won't work. This problem lies deep, and there really isn't an easy fix. Economically strong nations tend to invest a whole lot of money, while still spending a healthy amount. This promotes growth, and everybody is happy. Unfortunately, people spend a whole lot of money here in America, many times, money they don't have to spend. The wealthy people in America have learned to save their money, hence the reason they aren't in debt, and they have fat wallets. You're very right that this is a dilemma, and there are problems with almost every part of the system. Consumers don't understand fiscal responsibility, gov't doesn't understand fiscal responsibility (printing money out of thin air for the Iraq war), everybody is greedy and thrives on instant gratification, and they have to realize that it isn't possible to survive like that forever.
I believe we're in a recession now, and there is no telling how much worse it will get, or how much longer we'll be in it. The saying about the stock market, "buy low, sell high" is very true. If you're interested in investing in the stock market, do your research, find something of interest to you because now would be a great time to buy.
That's just me finding the silver lining of a pretty huge black cloud.
It was a tax refund, and only about $500 for some middle-class and lower-income families. These checks will only be used to pay off debt, not to increase spending. Spending is way down. We are in, or heading into, a recession. Consumers may not understand fiscal responsibility, as Interesting Point says, but they do know they are in debt and they can't pay the mortgage. It's a very bad time for a lot of Americans, unemployment up, dollar down, foreclosures. Who's responsible for this mess, anyway?
Good post! I think that again, it could have been more developed with specific sources. You have great ideas in your posts, but don't really cite any specifics.
I do have an opinion on the issue though. Both my brother and dad work with money (dad is a hedge fund manager, and brother an investment banker) so I have been hearing about everything, as they say, 'going to zero'. However, I'm not really sure it all is. I think that a lot of wall street type people are making somewhat of a joke about it now because peoples mindsets are so negative. They see one specific stock plummeting and they assume the worst. Our economy has been in a "recession" for a while, and I think that it will take something drastic for our economy to come back out on top. Maybe an end to the Iraq war?
I am optimistic about the subject. I have seen a large number of consumers still shopping, and people don't seem to be replacing things the like with inferior goods- yet. Only time will tell on this issue..
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