The Economy’s Problems Explained

Well, there are lots of reasons that our economy is at its current state. One is that we are at war. The war on terrorism is costing us billions a year. Which is extremely bad since we are already in a debt of over 9.3 Trillion dollars to various countries around the world. The war differently contributes to the debt.

The real problem though is the housing market. A bunch of people made loans that they, and the banks, knew they could not pay off, which resulted in people going bankrupt. And when a whole lot of people do something like that. Houses are being sold much much faster than they can be bought. Since houses aren’t selling, the people selling them cannot buy cheaper houses. Also, there has been a lot of talk about recession. Which makes people want to save money. And our government is based on spending money. And since people are selling all of there things to pay off their bank debts, and wishing to save money, the economy is grinding to a halt.

And after all these things happen, the government decides to spend another 700 billion dollars on the bank and auto bailout. And then countless other millions on stimulus plans! Leaving us in a bigger ditch then before. When i said our economy was based on spending. I didnt mean the government spending huge amounts of it on banks and auto companies that made bad decisions. And all of these economic problems caused the stock market to crash to the ground. Meaning millions of investors are selling stocks like there’s no tomorrow. And with all these people selling, and so few buying, the economy becomes unbalanced.