So as some Americans may have noticed, our country is in quite a predicament right now. the inflation rate is through the roof and still rising, oil prices are sky rocketing, our national debt is over $14 trillion, our congress is full of greedy, apathetic lobbyists, and thanks to Bush, our interest rates are as low as possible.
As some people may be aware, every economy goes through a cycle. Illustrated by the graph in the spoiler.
When bush took office, the US economy was still in a "bull" market. Meaning stocks were rising, businesses were expanding, and people were making more money. As you may have noticed from the graph, every country and there contractions and expansions. When the economy started to contract during Bushs' term, he did the exact wrong thing.
Instead of raising interest rates like a country is supposed to during a contraction, he lowered the interest rates in a panic to save the economy from going into a contraction. A country is supposed to raise interest rates during a contraction to try and cushion the fall from the peak. and this way, when our economy starts coming out of the trough, we can lower interest rates to promote business expansion, creating more jobs, thus bringing the economy into an expansion.
So now to our problems today. Since interest rates are at about .25%, they pretty much can't get any lower. Since the interest rates are at a all time low, it is impossible for the government to help and encourage businesses to expand by lowering the rate.
all of these signs point to a double-dip recession. We should know as Americans within the next few months if it is going to happen. Your thoughts?
As some people may be aware, every economy goes through a cycle. Illustrated by the graph in the spoiler.
When bush took office, the US economy was still in a "bull" market. Meaning stocks were rising, businesses were expanding, and people were making more money. As you may have noticed from the graph, every country and there contractions and expansions. When the economy started to contract during Bushs' term, he did the exact wrong thing.
Instead of raising interest rates like a country is supposed to during a contraction, he lowered the interest rates in a panic to save the economy from going into a contraction. A country is supposed to raise interest rates during a contraction to try and cushion the fall from the peak. and this way, when our economy starts coming out of the trough, we can lower interest rates to promote business expansion, creating more jobs, thus bringing the economy into an expansion.
So now to our problems today. Since interest rates are at about .25%, they pretty much can't get any lower. Since the interest rates are at a all time low, it is impossible for the government to help and encourage businesses to expand by lowering the rate.
all of these signs point to a double-dip recession. We should know as Americans within the next few months if it is going to happen. Your thoughts?
