The Economy: It's Getting Worst

While we read headlines about the presidential candidates, the war in Iraq, and immigration reform--the country is heading for the worst recession since the early 1980s. The confidence of consumers are at a low point. Individuals are concerned not only about saving their homes from foreclosures and vehicles from repossessions; but simply saving their jobs to feed their families. In May of 2008 49,000 Americans lost their jobs. The recorded unemployment rate shot up to 9% nationally and that does not include the millions of Americans who have simply given up looking for work. To put it another way--the permanent unemployed, along with ethnic communities like Hispanics and African-Americans the jobless rate is well over 15%. Thus, between 9 to 15 million Americans are now out of work.

If this is not bad enough the cost for a barrel of oil now is $140.00 and it is predicted that by July 4th the cost will be over $150.00. That means, the cost of a gallon of regular gas will be approximately $4.50. The increase in gas will impact on the cost of food, clothing, furniture, and every item that you purchase or need. Now, while this is happening it must be mentioned that there is stagnation in the United States. That means the cost of living is going up while salaries remain the same. In another way, your dollar does not buy as much as it did last year. For instance, the average consumer pays 33% more for the same amount of groceries they purchased 12 months ago.

The dollar is very weak now. The currency of some developing nations like Brazil is now equal to the American dollar. The greenback buys very little today in world society. At one time the dollar was gold in the world, every one wanted the American dollar. Now, the currency of choice is the European Euro. Which means world travelers, especially Europeans and Asians, can visit the United States and purchase items that most Americans can only dream about. Sadly, this means that our economic system is quickly becoming a second or third tier world system.

Economist argue that it may take years for us to reverse the downward spiral of the American economy. If this is the case expect the cutting of public services like fire prevention, police protection, the closing of schools, the reduction of public health facilities, and the closing of community shops and stores. Sadly, as this occurs we will see the rise of crime that is now taking its toll on previously prosperous cities such as Orlando, Denver, and Cincinnati. For instance, the rise in bank robberies, burglaries, the stealing of ATM machines along with grocery store shoplifting has increase greatly throughout the nation in the past few months.

On a final note, this is not to time to purchase high price items like automobiles, flat screen televisions, bling-bling jewelry and rims. Rather, save your money, buy discount, and do everything in your power to keep your job.