The state of the economy has been in question for a long time. We had many warning signs but they have previously been ignored.When thousands upon thousands of people were losing their jobs in certain states, this should have raised a red flag. Until the unemployment rate decreases for the states that have the highest rates, we are still in a recession.
Some of what most Americans thought were the most secure companies have closed their doors and that is not a good sign. You can be classified as a upper class citizen because of the size of your paycheck one day and below poverty level within a matter of days after losing your job. Think about this, years ago it was a stigma placed on people that had to use food stamps for the purchase of food. Well, it is not that way anymore. Just that change of thought pattern regarding food stamps, screams recession.
For example, lets examine the the housing market, we have heard of the massive number of individuals that are in foreclosure and the list just keeps getting longer. The stimulus package was not enough to have a major positive impact on the economy. Years ago, people jumped at the opportunity to purchase a home. Now, it is considered an unwise decision to purchase a home that you may not have the money to pay for in the near future.
Bankrutpcy is a viable option for those that would not even consider it. You were looked down on if you had to declare chapter 13 or 11. There are millions of households that cannot afford to pay the high insurance health insurance premiums that are being offered by employers. When it potentially costs a family of 4 over eight hundred dollars a month for a basic HMO policy, the recession is still here.
Previously parents were able to brag about the money they were saving for their children's college fund. That is rapidly becoming a thing of the past. It is unfortunate when Johnnie's college fund must be used to pay the mortgage. With gas prices out of control, many are only driving to places that they really need to go. The days of the long Sunday afternoon drives are over. For the individuals that have the larger luxury SUV's are contemplating trading them in for smaller vehicles that are good on gas. The use of public transportation in the commute to work is becoming more of a first choice instead of the last resort.
There is not a part of your life that the recession has not touched. Think of the senior citizen's that make the choice each month not to pay for their medicine in order to pay rent or mortgage. The signs of the recession is being shown on the faces of small businesses that depended on the purchase power of the local residents. Since most household's are cutting back on luxury items, most small businesses have to make the decision to downsize or to close. Just take a look at the sections of your neighborhood that had thriving businesses 10 years ago. Are those same businesses still open?
No the recession is not over. There are no quick fixes for the state of the economy at the moment. Unless someone comes up with a plan that will change the global economy, the recession will be here for many years to come.
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