The Down Fall of the Economy

Recently all that has been discussed in the news is the stimulus package for the economy. Now that it has been passed what does that mean for us? It was amazing to me that some Democrats had a split decision about the bill yet all the Republicans were against it. For me I wonder why. Why it this bill that is trying to get passed not astonishing everyone where they are all for it? I personally feel like this particular stimulus package is not going to have the positive effects that the president thinks it will. The country has to be getting this money from somewhere, yet we are going to notice tax cuts based off this bill? Jobs will be created with the money for schools, construction and parks. Those are all great places to invest money, but how many times do we really need to repave a road? I feel that the money could have been used for a variety of other things. For example create and discover sites for off shore drilling. This would create jobs for the research, drilling, maintaining, etc. The US would not be so dependant on other countries for oil, we would create jobs, and maybe in the long run countries would begin to look towards us for oil production. Another way to spend the money would be to discover and research more ways to become eco-friendly. Another words we need to invest the money better where we will benefit in the long run instead of creating more debt for our children and grandchildren to deal with.

After reading this article it became even more apparent to me the crisis that we are in, business laying off thousands of jobs, not ordering supplies, cutting cost where they can, interest rates are lower, and the employment rate keeps rising. Its like we are up against a wall, and just need to somehow break through it. I work in retail and have personally noticed how the ordering has been less than usual. After Christmas we have had Ipods, Blu-Ray players and other electronics all on back order from the manufacturers however we haven't placed any orders to replenish or shelves. The demand is not great enough to order more items. There has been an increase in coupon shoppers as well as an increase in returns on items that they may not use or need anymore. We US companies are not placing orders for merchandise that also affects other countries that supply the manufacturing for these items. Based off the article imports and exports have both been strongly effected by the down slope of the economy. Not only is the housing market still suffering but it branches of to home goods stores, home repair and home decor shops that are suffering as well because people no longer have the disposable income to redo their home or make any changes.

We are definitely in a recession, its just a matter of how long we will continue in this downward fall, and continue to have an increase in unemployment, debt and depression of Americans.

http://www.nytimes.com/2009/01/31/business/economy/31econ.html?_r=1&hp