Sunday, February 01, 2009

The Shrinking Economy


Are we living in interesting times or what? So many of the economic news, released over the last 1-2 years, are either the worst that we have seen in 3 decades or the absolute worst ever recorded. Can our frayed nerves withstand much more excitement?
Although the government figures, issued late last week , show that during the year 2008 the level of economic activity managed to eek a 1.3% rate of growth the estimates for the fourth quarter were abominable. The decrease in the GDP of 3.8% was the largest decline in over a quarter of a century and the weakness appears to be spreading. No one is expecting a quick reversal of this downward spiral. Actually, the economic consensus seems to expect the contraction in the US economy to accelerate over the foreseeable future. It is against such grim expectations that the new proposed stimulus package will be voted upon by the Congress. Passage of this package by February 17, 2009 is not in doubt, what is in doubt is the margin of victory. Does the opposition to an “imperfect” measure provide sufficient grounds for doing nothing when conditions are so dire?

7 comments:

Amanda McQueen said...

AT THIS POINT ANY LITTLE EFFORT ON THE PART OF OUR GOVERNMENT WILL HELP. NOT TO SAY THAT ANYTHING WE DO FROM THIS POINT WILL HELP BUT WE NEED TO DO SOMETHING FAST BEFORE THE GROUND FALLS FROM UNDER OUR FEET. I THINK ON THIS ISSUE BOTH PARTIES CAN AGREE THAT SOMETHING NEEDS TO BE DONE ABOUT THE STATE OF OUR COUNTRY.

Anonymous said...

It is important for congress to debate the merits of each bill, but no piece of legislation will meet all expectations. Once an 80% solution is reached, our leaders should put aside their objections and push the bill through. Once the Senate trims the fat off the stimulus package, it should be acceptable to both sides.

-William Fabian

Mary B. Dixon said...

It would be nice if the ideology of the cobb webb diagram would take into effect much quicker, but unfortunately it takes time. So with that said the government needs to put aside extreme opinions and put the ball in motion. The U.S. needs this economic bill to pass. I know it won't solve problems for long, but at least give the nation some hope that we aren't collapsing into a depression.

Anonymous said...

Just thinking about the current economic status is depressing enough but all we can do is pray for some kind of rescue. Even though there is a rescue plan underway, Congress has to understand that there is no "Sure fix" to this problem and that it will take time no matter what the solution may be. I believe that the American people definitely need some kind of hope handed to them so they don't give up, which can lead to many other disastrous events. The stimulus package must be put through and we can all hope for the best (starting now.... and for the next couple years...hopefully)

-Sara Basheer

Anonymous said...

With the current of our economy, our government can't afford to do nothing. It is never guranteed if one solution is going to work out 100% but any action to try to bring the economy back in balance should be carried out at this point.

-Skyler Mandel

Anonymous said...

The package is the first of many trial and errors that will be tried prior to finding the proper solution
to the current financial problems we
are confronting. Personally, I hope that this sends the economy in the right direction.

A Forthenberry

Anonymous said...

Does anyone truly believe that the solutions being proposed by the gangsters in Washington will do anything but line the pockets of their buddies and pad the trust funds of their own kids. Get real, they care about this economy? No, they care about their economy, which thrives on chaos, war and disorder,