Democrats

American Recession Or American Aggresion, Which Do You Choose?

November 6, 2007 ⋅  E-Mail Article ⋅  Print Article ⋅ Post a comment

When we were kids we thought if we closed our eyes the boogey man, or the bad news, would just go away. However, as we reach adulthood we come to the realization that whatever is there when our eyes are open is there when our eyes are closed and this is the situation we find ourselves in when we discuss the American economy. We can accept a recession or address the issue with aggression and an aggressive response will resolve American problems. Many Americans think if they keep their head down and don’t talk about outsourcing, and jobsourcing, and layoffs that these issues won’t affect them. However, by not stepping up and forcing their elected local politicians to address these issues they are allowing the boogey man to reach right into their homes and steal their livelihood from them and their families.

A recession is a significant decline in economic activity spread across the economy which can last for months or years.A recession may involve coincident al declines in various measures of economic activity such as employment, investment, and corporate profit reports. Recessions will usually be recognized by a situation of falling prices known as deflation which can be brought on by the flood of cheap imports, or sharply rising prices known as inflation which could be the situation we find ourselves in with the high price of oil and gas. Either instance, deflation or inflation, will usually cause an economic situation known as stagflation, which is the resulting stagnation of the economy brought on by a recession.

The simple problem is America does not build what it buys any longer and this is an economic model doomed to failure and until we do something to protect American jobs in America we will be ever sliding into a recession. The Republicans say it’s the subprime crisis which is causing the talk of the recession but in reality it’s the issue that so many Americans have lost their jobs that foreclosures are more of an issue because of unemployment, or underemployment, than it is some subprime issue.

The subprime crisis is an early warning sign of problems for United States consumers because these consumers leveraged their potential rising housing values against the equity from these houses and when the value of the houses quit rising because of lack of job growth then suddenly these consumers had no way to repay their equity debts and thus the problem rose. However, it’s the job losses that caused the problem, not the subprime lenders.

However, politicians seem more intent on bailing outr the big banks involved in the subprime crisis than they do about creating jobs for the Middle Class who would use their earnings to buy back these houses. You want an answer to the subprime crisis? Create more domestic American jobs; this will resolve all of our problems in America. It would end the talk of recession and make America a well respected world power once again. Right now the image of America is that it is a corporate sell-out and not a unified power.

Until we have more job creation in America, and not India, China, or Mexico, then we will continue to have housing prices which will probably decline next year for the first time in US history for the nation as a whole. You can sit and wait for it to be your turn to get laid of or you can do something about it right now. The choice is up to you.

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