ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

American Economy

Updated on December 31, 2009

America Economy in 2008 and 2009

Is America still in recession? Downfall in American economy started in the beginning of 2008 and still going on. It is very hard to predict economy as it can be changed drastically in over period of time. There are several reasons for economic downturn such as changes in consumer spending, change in supply and demand, consumer confidence, nation gross domestic product etc., but no one knows exactly the one reason.

Now more than ever people are spending less and trying to save some money that is also making hard to recover the economy. Consumer spending confidence is way down. Thousands and thousands of people have lost their houses because they can not afford anymore, families are forced to sell their houses, or car to survive in this economy. In the first quarter of 2008, 36 percent of all foreclosures initiated were on prime adjustable-rate mortgages in California. Mark Zandi, chief economist of Moody's Economy.com, says the decline in home prices has slashed $2.5 trillion from household wealth, or about $25,000 per homeowner.


Impact of Economy Downfall

There are several businesses, both large and small that are being impacted by the change in the economy; companies are looking into merging with other just to survive. Recently Bank of America acquired Country Wide and now one of the major financial institutes Merrill Lynch is looking to merge into Bank of America.

According to United States Department of Labor, unemployment rate is continuing to rise and for August monthly data shows 9.7 percent (Economy at a Glance). More and more peoples are applying for unemployment benefits to state unemployment insurance agency. Since the beginning of 2008 millions of jobs have been lost and companies are still looking into lay off more employees. According to my survey with my coworker, friends and families; it seems that very few companies are now hiring people but paying less than half than what they usually use to offer for same position and based on years of work experiences.


Change in Life style due to Economy Downfall

Americans are accustomed to spending in holidays, homes and their personal needs but due to the economic downturn, they are saving money for rainy times. It is quite hard to see families compromising their needs now. Little children are noticing the stress their parent has to suffer. We are not seeing lot of initiative being taken from government to improve the economy.

As human beings, we cannot predict the future but looking at the downturn, I am afraid to say but there may be a huge storm ahead and everyone has to face it. I expected that it would get better by the end of 2008 but now we are at the end of 2009 and no improvement has been seen so far. Housing sectors are still facing down turns; it is sold at the lowest price possible but people are afraid to buy house in this bad economy.


How to survive A Bad Economy

Surviving in bad economy is really tough. I know several people who are looking for job over more than six months and still haven’t found one. Here are few things you can you do to survive in this economy:

Ø Watch your spending – think reality, do not just assume will be get rich overnight and able to pay all your debt.

Ø Try to look to cut down budget for all of your purchase- do some search, there are several options available out there that will help you manage. Shop around or goggle online when making big purchase

Ø Talk to different insurance company for home, car and other insurance to see if you can save money by switching to other insurance company.

Ø Avoid investing in high risk or even moderate stock market. If you have retirement account switch you fund to bond and other less risky fund.

Ø Pay first any high interest debt such as car lone, credit card lone- if you can not pay look into transfer balance to other company. Sometime you can great deal by shopping around.

Ø Refinance house mortgage to lower interest rate.


References:
http://www.bls.gov/eag/eag.us.htm#eag_us1.f.R
http://www.newsweek.com/id/140553

Comments

    0 of 8192 characters used
    Post Comment

    • profile image

      Susan 

      8 years ago

      I so agree with above comment, it’s so hard in this economy to find a new job. After I lost my job due to contract expiration, it took 6 month for me to get another one and in meanwhile I was without any insurance. Americans are suffering more than ever due to economy downturn and all we can do is to keep our mind positive and hope for the best for our family.

    • OpinionDuck profile image

      OpinionDuck 

      8 years ago

      The wisest choice is to vote for politicians that understand simple arithmetic. Especially ones that will realize cutting the size of government, decrease the tax burden on the middle class. The middle class is tapped for the biggest taxes paid. The poor don't pay taxes, they get money from the government. The rich have hundreds and thousands of tax loopholes that Congress provided for them in the IRC, Internal Revenue Code. The middle class don't have the ability to use these loopholes.

    • profile image

      Jesica 

      8 years ago

      I really like your hub. You have have very informative hub.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)