Wednesday, June 11, 2008

Why is the economy so bad?

The economy is in such bad shape because there is no equilibrium and stability holding it. Personally, I see that the rich are settled while it is the middle and lower classes that are suffering from this recession. It should be the rich who have to pay more, get taxed more, but it is the lower classes that are forced with this inequality,, because there seems to be a level of inferiority. The economy i s so bad because the unemployment rate has increased. It has spiked .5% which is a lot when you consider that around 49,000 people have lost their jobs. To further add to this, oil prices have jumped from $11 a barrel to a whopping $138. This is not surprising as with the recession, about everything has jumped in price. Also note that the U.S. has spent so much money on imports than exports, which is what led to the deficit and pretty much led to the forcing of a recession. So how does all this make sense when you take the fact that more people are still losing jobs at the moment because there is not enough money for employment, yet the government thinks that by increasing the prices of items that are most needed, like food items, will boost the economy and keep it in shape. The day where we have to pay $3 for a bottle of water is closely looming around the corner, and that will be a scary day.