The country as a whole, will face a drop in living standards. Not only was the country living beyond its means, but so were many American families. The bubble hid the fact that the economic state of the nation was not as good as reported. The focus on GDP has been misleading. Many groups and segments in the U.S. already face weak prospects. According to BEA males in their 30′s make less than their fathers 3 decades ago. Most Americans have seen their income stagnate for a decade. Yet as people saw their income decline and stagnate, they nonetheless, consumed as if they were part of the “American Dream.”
With the Federal Reserve fueled housing bubble, Americans could increase their consumption today and pretend they could look forward to a comfortable retirement and provide educational opportunities for their children. All the while, the government was borrowing as much as 7% of GDP from other countries when it should have been setting aside piles of money for the surge of retiring baby boomers that will hit the system in 5-10 years. Now not only do we have a lost decade of growth, but a “lost generation.” I have friends who graduated from Florida State last May who still don’t have jobs. Those of us in graduate school aren’t sure if we can find jobs upon graduating. We should be looking at job creation and how to get out of this economic black-hole. Cheering Corporate America is fine, but please do not sugar coat over the truth BTW this, BTW that… Look to encourage people cut back consumption and pay down debt so they CAN foster new growth. Write something on job creation or new sectors that should grow. We should not to play partisan games and censoring everything that is anti-Obama, but do whats best for the country for sheer the wonder and glory of it. We choose to do such things, said John F. Kennedy “not because they are easy, but because they are hard.”
- stockfreefall
