How the recession led to President Obama's stimulus package.
The middle class is the support beam of the economy.
A high percentage of middle class people in any country signify a strong economy. In a way the middle class is the connecting link which connects the poor with the rich. When that link is broken, the economy suffers because transaction from the poor to the rich becomes nearly impossible. It is also logical to say that the middle class is the middlemen in our economy.
Middle class people are usually the one to start a family business, giving other folks jobs in the neighborhood. Once the middle class start shrinking, it usually means to prepare for worst to come because a recession is on the way. As we have seen times and times over, the people who are first to feel a recession are the poor, those that are at the rack bottom.
Poor blacks in all society are the first to feel a recession before any other races. Sometimes they are not aware of the descending economy until other races begin to complain, to them every day is a recession. They’re like the wind before the stom; they announce to the middle class that a hurricane is on its way.
The middle class disbelieve them at first; often blame the poor for their misfortune. They are hold responsible for not being educated enough, as if they were truly equal opportunity for growth. Anyhow, As the wind increased in velocity, the poor begins to slow down in spending. They then turn to family members for cover; they can no longer afford to stay in their apartments. They have borrowed too much, living from pay checks to pay checks until they can no longer afford a bank account anymore.
The poor stops their frequent purchases, the poor whites follows alone, and together increasing the wind of the hurricane. The middle class who are the small business owners, and the subcontractors along with the above average salary makers begin to feel the wind. Members of their families are being layoff, creating great concern. Their education implies to them that they should never be an any position to lose their jobs.
As the wind increased in velocity, poor blacks & whites quickly became economists over night, they begin to make cost cutting initiatives, buying only what they need, erasing the dream of the luxury life off their minds.They begin to think in more realistic terms, such as "I can't afford this pair of boot this week or the week to come, so I won't buy it at all."
No dream to live up to, small business owners start lacking in sales, the false reality of wealth that they once believed in for so many years have now sunken in. Now, the storm is forming while sweeping in its path, all unstable businesses that comes its way. Mrs. Albert, the psychologist who has been in business for so many years suddenly has no more clients. Since money is hard to come by, the last person people want to see is a shrink. Bobby Do’s snicker store that is right around the block from Mrs. Albert has declined in sale. To stay in business, they have found themselves having to layoff employees, reducing in operational times and their overall purchased.
The hurricane is moving uphill, while in the process breaking the link that exist between the middle class and the poor. As the hurricane moved uphill, the rich are now feeling its wind. The rich who are the suppliers have suffered great decline in sale. The middle class can’t no longer able to conduct business with this hurricane sweeping away their businesses one after another. So they go to the rich for help, the rich quickly help because they know if the middle class fail, it will impact them like a domino effect.
The rich never expected this hurricane to reach the top of the hill, for they have taken precaution (so they thought). Unable to maintain, they in turn, turn to the banks, but only to be disappointed for the banks new it all alone that a hurricane would come, but never suspected it to be a category five, which have caught them by surprise.
Attempting to stay alive, some of the banks have consolidated their business through this process known as a joint venture capital. A joint venture is a process in which two or more organizations form a separate but independent organization as an attempt to stay alive. The rich having no one else to turn to, begins to feel for the first time how it is like, not being able to afford a desire.
The middle class has now completely shrinked, those that are able to shield themselves from this hurricane, instantly move up the hill while some of the rich who are less fortunate replaced the middle class. You are now looking at the process of wealth redistribution where the middle class ascend or descend the hill of wealth.
The middle class will continue to shrink until they exist only two classes, the rich and the poor. The rich in this picture are those people who invested heavily in foreign markets, yielding $20.000 or more a month from their investments. When that happens, our country is no longer able to sustain its self, they depends mostly on foreign markets for help so they develop strong intimate relationships with those countries to strengthen their bonds, and purchasing power.
The commander in chief who have assumed power in these difficult times is often the one to blame for the country’s economic failure. People only gives credit to a president when their living standard have improved under his administration. Now, you begin to notice the reason behind President Obama’s stimulus package. He wants to be remembered as the president who brought prosperity to his people. As an attempt to do that, he ventured into all sort of strategies, trying, visualizing, looking for better ways.
He tried to reach across the ale for a helping hand. Old scars brought bad memories, the republicans decline. He struggled, striving for a better way, he does not want to see this money goes to waste.
Businesses all over this country waiting impatiently for this money. These businesses have suffered far too long. Citizens of all part of the nation crying, complaining, they losing their jobs & homes, the government must step in. Republicans screamed out ...hold up! This is a spending bill. President Obama cried out, but of-course it is! the meaning lies in what this money will be spent on. Republicans eager to see how this money is used, questioning every aspect of this bill.
For transparency reason, the president makes appropriate measures to make certain that the money is well spent. He created forums for citizens to see where the money is being distributed, something that has never been done in the history of this country before. It's a wise move that shows honesty, and trust, he is convinced to make good use of this stimulus money while republicans argued the opposite.
Citizens wondered are the republicans campaigning or are they just taken precaution. So they wait and see where this money goes. This was just a short story about the stimulus money.
More by this Author
In a tough economy where money is hard to come by employees who have received advances from their bosses may accept it because of their inability to pay their bills on time. However, to know whether or not an advance...
As it is right now, the current statutes permit federal prosecution of hate crimes committed against people of different sexual orientations, color, religion, disability or ethnicity to be a violation of the Law...
National security in its broader sense includes both, internal and external security. External security involves states implementations of legal codes as a mean to prevent attacks against US borders, infrastructures,...
No comments yet.