Will the American economy slip down in near future?

Question

I am extremely worried. Observing the American (the U.S.) economy and the world's, it looks like we all are heading into something.

Clearly notable, the American economic growth and the money spending has been decreased from theAmerican mini-golden ages during the late 1990's.

Not only that, but also there are very costly war on Iraq and war on terrorism, that does not seem to be over on foreseeable future.

I have a bad feeling that the American economy is going to have some harsh times ahead (and consequently, the world as well).

The most critical problem is, the majority of people do not take this seriously.

Do you agree? If or if not, then why?

Answer 1

I absolutely agree with you. I work in real estate, so I am pretty sensitive to the general economic situation. Everyday I see people who are struggling to just meet basic bills, despite working full time. The job market has changed and the education system hasn't. People complain there are no good jobs while employers complain there are no qualified employees. Diffidently something wrong there.

Americans also actually have a negative yearly savings, meaning we actually spend slightly more then we make each year. Most households are carrieing a tremendous amount of debt. Of course, how can you blame people? They are just following the government's example.

I have also noticed how much the costs of essential products like gas and housing have gone up compared to incomes. How are you supposed to get by when your mortgage payment has quadrupled while your pay has only doubled?

Anyway, that's my rant, lol.

But I do think people should take this seriously now and be prepared because eventually they won't have a choice but to pay attention.

Answer 2

You are right about the economy falling. I run a business in Canada and american vendors want our market so bad. They would rather ship it here and sell. I wouldn't be worried about america enterring a depression that consequently effects the world or anything. You got your friendly neighbours to the north and we all have to take a step backwards to move forwards sometimes. With this war being fought you might notice a few things change, did you really think that this wasn't inevitable. Be the best preson and citizen you can and i urge all of us in North America to stay strong and stick together.

Answer 3

The American economy will hit a wall when our lenders refuse to continue to loan us money on favorable terms. I'm talking about the trade deficit as well as the government deficit. These cannot continue to increase forever. The effect will be similar to what happened to New York City in the 1970's, or what happens to a family when it finally maxes out on all its credit cards. At that point you have to adopt some austerity measures, and live within your means. Alternatively, the US could inflate itself out of debt, but that will also have a negative effect on the world economy.