America and the Economic Crisis

Uncategorized — By Shopping Blogs on November 21, 2009 2:19 pm

America, which has always been looked at as a leading country for opportunity, success, and growth, is facing a huge economic crisis. Multiple factors have led and contributed to this poor economy which will hopefully begin to improve over the next few months.

The economic crisis America is facing is the result of a number of things. It is not completely clear what began this downfall, but many point to the increase in housing prices which began in the late 1990’s and continued through 2005. With housing costs rising, many Americans could no longer afford houses they would have been able to with their available incomes. Unfortunately these rising housing costs were taking place when September 11th occurred and all the effects of that terrible day were put into place. Because of September 11th, interest rates were lowered making it very easy to borrow money for things like homes. So, basically, people who were not able to afford homes were able to buy them anyway, but then, eventually, ended up unable to pay them back. Also, many people were finding easy ways to make money in the housing market and when it collapsed, this began the spiral which would lead to an economic crisis. Banks soon realized they had invested a lot of their money in loans which were bad and the economic crisis took off as investors pulled their money out of the banks. This led to banks being unable to give out any loans, since they hardly had any money on hand because of all the bad loans they had invested in. So, people who needed loans could not get them, which made it impossible for them to make big purchases. These different problems, along with a number of other factors, led to America’s economic crisis.

The economic crisis has had a huge affect on America and all of its citizens. People are being laid off right and left and families are struggling more than ever financially. Benefits are decreasing and those who would have been able to retire have to continue working. However, these people are the lucky ones during the economic crisis for so many people are unemployed. Now is a terrible time to be graduating from college or entering the workforce because even the most basic of jobs are hard to come by. Finding a part time job, even as a high school student, is difficult because of the economic crisis.

President Obama has plans to fix the economic crisis and put America back on its feet. Of course, this economic crisis is not easily reversible and it is going to take a lot of time and energy in order to be put right. However,  President Obama has quite a few plans he has put into action in order to save America from its economic crisis. First of all, President Obama signed the American Recovery and Reinvestment act which will create 3.5 million more jobs and give 95% of Americans a tax cut. Many people do not approve of this act, mostly those who are well off and will be paying much higher taxes, but for most Americans it is a positive act which will put America in the right direction to getting out of the financial crisis.  Secondly, President Obama has put into effect a new housing program to help stabilize the housing market, which was a main cause to the economic crisis. Finally, President Obama has made investments in healthcare, energy, and education, to help improve America as a whole and put the economic crisis in the past.

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