Student`s Name News Story
The United States have enjoyed a good economic, social and political reputation for decades. This repute was however affected in 2008 economic recession that saw the U.S economy fall. It was the worst after the 1930 great economic depression.
Known as the super power, the U.S`s view as the global economic giant changed after the 2008 economic crunch which also affected the rest of the world. The U.S dollar was considered a measure of value.
Nevertheless, the reality had dawned to Americans with most of them waking up homeless and jobless, in the mid of 2008 when the situation worsened. Several companies became bankrupt and were closed indefinitely.
John Morgan, a 28 year old graduate who had just secured a job with a prime bank in New York, says in an interview: “I couldn`t hold it losing my first job, recession was real”.
Americans were however confident as they had just put a new president in office. The promise of change and hope for better things through Obama`s campaign slogan of “Yes we can” was influential.
Things were never the same after his election though. Some people saw little or no change, while some accredited his leadership to some improvement in the economy of the country and in their individual lives.
Jane Mayors, a graduate seeking employment believes the Obama administration has done nothing about the recession. “Look at me, am still jobless after four years of job search, it`s politics as usual.” She says.
This notion is also echoed by Amos Maponya, an immigrant who came to the U.S in the wake of the economic crunch says, he wishes to return to his home country as he has got a job yet.
Despite many people losing their jobs, the situation was made worse by the thousands of graduates entering the job market every year. Unemployment rose to 12 percent during the crises with more people becoming homeless.
Apart from job seekers, other players have raised their concerns regarding the effects of the global economic crises and the way it is being handled by the government. Most people have seemingly been hit by the crises.
James Lee a financial analyst argues that, “Global economic crisis is not a monster, some people have been taking advantage of the situation while millions of people are struggling to survive someone ought to be serious!”
In his opinion, Lee believes the Banks and Wall Street are to blame. He believes the two bodies are driven by greed and are acting irresponsibly to the crises, hence worsening it.
On the other hand, Emily Durkheim blames consumers for the crisis. “Many homeowners borrowed more than they could handle, which lead to them losing their houses, which led to the crises”.
Large and small businesses have also been hit by the economic crisis. The crises saw the collapse of major companies including the Imperial Bank, GMC that had to be bailed out by the government.
Eddy Clifford, an owner of a grocery says, “People have significantly cut down consumption, I used to make sales of up to $3,000 a day but this is hardly so nowadays.”
Clifford attributes this to the fact that, food prices have gone high. “I used to spend $2000 on fruits before 2008, this is not enough today for the same quantity today.” He added.
Millie Gurt, 53 a nightclub owner is of a different opinion. “My nightclub has been making money day in day out. In fact I have noticed a surge in profits despite the prices of liquor going up.”
“I think people have never cut down on entertainment despite things being tough, I don`t know but I think some have taken their frustration into drinking regardless of the hiking prices.” Gurt explains.
Financial crises also pushed poverty levels in the United States to high levels. Before the crunch, 7.5 million Americans lived in poverty, a number that is expected to rise to 10 million during recession.
Poverty in addition to unemployment has seen many families unable to put food on the table. The problem has worsened as people continue losing their jobs and the soaring food prices.
Thierry Mankind says “I used to have a decent meal, my family would have three meals a day, unfortunately am not in a position to do so, they can only have a meal a day.”
Mankind further complains, “The recession saw me lose my stable job, am now doing casual work to sustain my family, food prices are very high and I think nobody cares about us “
Another sector that has been hard hit by the global economic crisis is the credit sector. Justin Bolt 53, a Banker a financial adviser of a local microfinance institution echoes his sentiments.
“People are coming to us asking about how to go about a mortgage, spending a loan on investment or the available options for credit.” According to Bolt, perhaps the economy is picking up or people are desperate for credit.
As a financial adviser, Bolt thinks that this is a reflection of the worst yet to come. “If people are pushing for more credit, we are headed for disaster. Credit is what pushed as to this mess.”
Some businesses have been affected drastically through the crisis. Online freelance writing has been affected. Maria Cutter, a single mom to a two years son an online freelancer says her work has deteriorated.
“I used to make enough money for me and my son through freelance writing I did not need to do any other job. The recession has pushed me to start doing other side jobs.”
Peter Majors, a proprietor of a freelance company has also been affected. According to majors, people outsource writing jobs to freelance writing companies because they are busy making money elsewhere.
“People find writing very time consuming, however with little money, they have been forced to work on their projects without seeking our services.” Majors states. This is due to declining income from unemployment.
Nevertheless there is hope at the end of the tunnel. The economy is improving steadily according to some respondents. They have attributed these improvements to various efforts by the Obama government.
“The Obama government approached this matter with the seriousness it deserved. The establishment of the bailout program prevented the situation from worsening” says Hassan Amir a 65 year old former economist.
Restaurant owner Rene Bumad 33 believes that there has been great improvement in the economy over the last three years. Bumad says her customers are making a comeback. “People are visiting the restaurant more often than in 2008.”
“We have seen many companies getting back on their feet. This has created job opportunities that have substituted the lost jobs it is a good thing that the government came up with the bailout plan”. Says a 40 year old Jay Michael, a high school teacher.
Asked about their views on the future of the U.S economy, people expressed varied views.
“The U.S is definitely going places, our economy has been affected but I believe we are recovering faster than anyone else. We are the largest economy and we shall remain the best” affirms a 33 year old farmer.
However Gren Wallace 23, a graduate in political science sees the U.S economy as crippled. To him, the U.S cannot recover when it is taking billions of dollars to fight other countries.” “We need to be realistic” he adds.
Evidently, people are of varied views and have been affected differently by the recession. One thing is clear though, the crisis brought devastation, misery and suffering to many Americans.
Luckily though, majority of the population believe the government is playing its role in improving the situation. Economic stimulus plan has been successful in realization of a healthy economy.