The nation is facing one of its most distressed times. This country has fallen from its once great position, undermined by corporate greed, and military threats. We reached our nation’s height in the 1950’s and on into the 1960’s. Several factors have helped to contribute to this decline from the growing deficit, to the instability of Iran’s proliferation and the war on terrorism.
Our economy took a tumble in December 2007 our gross domestic product also continued to decrease. However, congress did not recognize the signs of the recession until December 2008 (Isidore). During this time mass layoffs and numerous business closures occurred. The economy has been a large issue even before Obama came into office.
One of the first factors of the recession was the housing market which has taken a hit. Several families have been forced out of their homes when they have became unable to make their mortgage payments. Seven and a half million mortgages were past due or being foreclosed on (Felton 35). At least one million other homes are on the brink of foreclosure. When you are without a home it is much more difficult to escape the vicious cycle of poverty, you are unable to apply for a job since you do not have a permanent address thus only pushing the nation farther into despair.
The nation’s deficit has reached 13,000,000,000,000 dollars more than it has ever reached before and is still anticipated to increase to an estimated 14,000,000,000,000 dollars before the end of 2010. The Obama administration has put a spending freeze on to help counter act the expected increase of spending (Stein). The freeze makes congress allocate their money for new project by cutting other services. The effect of the freeze is expected to save the nation $250 billion dollars. The deficit of this nation consumes 94.27 % of our gross domestic product which leaves little room for growth. Comparing today’s deficit to the height of the nation’s deficit between 1950 and 1970 which only crested at 368,685,000,000 that was covered by 42.5% of the gross domestic product.
The global economy has been recently scared by various bad reports of uprisings in Greece instability in Europe and increased declines in retail sales. The Obama administration has to find a way to stabilize the economy in order for economic growth to begin. Although it’s not clear what the Obama administration should do to help fix the economy many economist agree upon increasing profit margins, secure the home mortgage market, increase regulation on trade, and create jobs. However, the disagreement comes when you began to talk about specifics. In order to increase profit margins we must lower labor rate and cut inflation. We must also change our mindset and comprise the capitalist ideology with a Marxist mindset. We must look out for the better of the society and the human race rather than individuals. Even if that means lowering our living standards to increase our nation’s prosperity.