All Entries Tagged With: "Failure in the Economy"
Wall Street and Main Street are on Completely Different Levels
Last week I wrote about whether or not the recession was truly over with the intentions on getting your point of view first (Here is the link to the previous article), now here is what I think.
Wall Street and Main Street are on Completely Different Levels
Just because Mr. Bernanke says the recession is over has no actual correlation to the real standing of the economy. Yes, he may be the head of the Federal Reserve but his statement last week didn’t connect with many Americans. Yes the economy is improving, yet we are nowhere near our optimal level of production. I think the huge problem and something Bernanke hasn’t realized is that there is a huge disconnect between Wall Street and Main Street. On Wall Street we are acting like these are prosperous times with stock prices soaring, banks improving, and big bonuses being handed out. Though when you bring it back to Main Street and the level of the average American we are struggling to make ends meet. Unemployment levels are at frightening levels, housing prices are at an all-time low, and the average person is being further pushed into debt. The big problem I have with the health of the economy is the psychological aspect of the economy. On Wall Street now the excitement is rolling with the soaring markets. However across the
nation, the recession mentality is holding strong and it’s not a good one at that. This mentality has taken a direct hit on retail as consumer spending is down significantly this year. Most Americans are cutting back on discretionary spending and are planning on continuing this habit, which I see as a huge hit to the resurgence in the economy. If the economy continues to not facet a healthy recovery then elections in 2010 will become interesting. History has shown us a low unemployment rate directly hurts the party in power. This bodes well for the Republican Party, as it’s very likely we could see the Democrats lose a significant amount of congressional seats. What the government needs to realize is everything they are doing now is completely wrong. People are tired of hearing excuses they just want to see results. Plus the constant push of the healthcare bill is not helping his party either. To facilitate a strong recovery Obama needs to forgo his health care reform and create new jobs. He needs to create new industries that can thrive throughout the next century. All spending should go towards high-tech, environmentally friendly jobs. Investments in huge capital expenditures and public projects.
