American Economy: Dramatically Alarming

The state of the American Economy is dramatically alarming. The worsening housing market, lack of consumer confidence, and deepening credit crisis are leading the national economy on a dwindling spiral.

The job market has been devastated. According to the Employment Situation Summary, the Manufacturing industry has lost over 157,000; the retail market has lost 592, 00 jobs, and the financial industry has lost 388,000 jobs. Thousands of other jobs are being lost weekly. This has lead to a skyrocketing unemployment rate. Americans are panicking.  Over 5 million have applied for unemployment compensation, food stamps, and food shelter assistant.

Thousands of businesses are also steadily cutting back or closing doors altogether. The banking industry is still suffering despite the republican bailout initiative in 2008. If consumer confidence doesn’t improve, retail businesses such as Macys, Saks Fifth Avenue, Sears, and Eddie Bearers are in jeopardy of not even surviving the summer.

America has also accumulated a huge amount of debt. Credit card debt is out of control among thousands Americans. . Many have spent way over their budget. Students also have borrowed more loans than they can repay and college cost continues to rise. In addition, the United States must also address the amount of international debt it has accumulated over the years. American owes China and other nations trillions in dollars. It is at the mercy of these nations. If China so wishes, it can call all the shots regarding its products and systems. In a sense, the United States must bow at China’s table. Therefore the U.S. must regain its independence and reestablish itself as a credible power on the world’s stage. This goal has to begin with economic recovery.

President Obama’s stimulus plan is expected to be the answer for boosting the economy. Here’s why. Firstly, the more than 800 billion stimulus plan promises to create millions of jobs. Obama’s renewable energy and green job initiative intend to get Americans back working and spending again.  Thousands Americans will be employed to renovate houses , roads, and bridges as well as preserve energy in ways other than depending on fossil fuel. The plan will also assist state and local governments with closing the achievement gap in schools and improving infrastructure. Third, the stimulus plan will extend unemployment compensation and increase the amount of the checks by $25.00. But Obama is holding every American responsible for doing his or her part in helping the economy recover. People are asked to help in rebuilding their communities and confront various problems such as illiteracy and poverty. With a joint effort against the economic crisis the Obama administration hopes to get the economy back on track and reverse the dwindling spiral.