The recession will never end. Watching This Week with George Stephanopolous the other day, there was a panel of economists, political analysts, etc. (one of them was George Will). They were discussing the economy and what the future holds. Essentially, they all agreed the ONLY way for the American economy to get back to the way it has been the past 10-15 years, is for Americans to spend. 70% of the American economy is based on spending. Glenn Beck has also discussed this statistic. The problem is that 1 out of 10 Americans is now unemployed. Spending is not an option for them. For the other 9 out of 10 Americans with jobs, spending is how we got into this mess in the first place. Buying houses with adjustable ARM rates we couldn’t afford when the ARM rates went up, buying houses for investments that never panned out and having to foreclose on them. Spending is NOT in the best interest of the American citizen now. So there is a paradox we have on our hands.
Here is what I predict will happen. The unemployment rate will NEVER go back to the low 4% range as it has been during the Bush years. It will ALWAYS remain at about 10% (it is just below 9% now.) This will become extremely frustrating for Americans who have become accustomed to having no problems finding a job. People with college degrees and plenty of experience will not be able to find work. This will result in extreme frustration with the government and we will see strikes and riots on a more regular basis, (as there is in many European countries, such as France and more recently Greece for these exact reasons.) Unfortunately, the current administration in the white house feels that more government is how we solve these problems. This is an extreme falsehood that has been proven not to work many, many times over the course of human history. The only thing that can help America, and the world, climb out of this recession is going back to the basic principles outlined by our forefathers in the U.S. Constitution. In order to do that, we must elect sound, honest men and women to government offices. In order to do that, we must LEARN and become EDUCATED on the Constitution and the teachings of our forefathers. That is the answer. When we become aware of the principles this country was founded upon, we, the people ,will solve these economic problems. Not more government programs.
