The reason the economy is so bad right now could be blamed on the oil prices. The oil prices from the Middle East have risen, causing our gas prices to shoot up. As our gas prices rise, we fall into frenzy. Almost every American family owns at least one car, if not more, so each one of us is spending more money than we are used to on gas. Once the price of gas starts to rise, the price of everything else rises. Manufacturers make their products with gas and send it to stores using gas. It will cost us more to buy these products since it is costing them more to make and ship them.
Our incomes haven’t increased but our outcomes have. Actually, many people are making much less. Big changes have been put in place to adjust to the changing economy. Businesses are suffereing because people have to cut back on spending due to inflation. To deal with their loss of business, there have been lots of pay cuts and layoffs. We need to be make more money to support ourselves but are make less. There is a huge unbalance in the economy, that can’t be easily fixed.
The only positive to situations like this is the aftermath once the problem is resolved. Hopefully, this recession serves as a learning experience for this country. If we fix this issue the right way, we can rebuild and reinforce our countries system so that something like this doesn’t happen again. The reasons for this recession are clear, so there should be changes made to the areas or policies that allowed this failure to occur.
A recession also should teach individuals to change. People will learn new ways to handle their finances. New precautions will be taken to assure a household from losing everything. It is bad to think that such a terrible recession is what it takes to teach people to be careful, but at least their learning.
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