Are We Out Of The Woods? A Post Recession Evaluation
News media and government spokespeople are telling us the recession is over. They have been saying it since before the economy actually turned around. Most indicators are pointing to a recovery trend but it is slow and tedious – almost as painful as the initial downslide has been. Several opportunities still exist for backsliding and the recovery will be slower than historical norms. As the recovery gains momentum it is time for some post recession evaluation. Across the world, countries are looking to the United States to lead the recovery but that leadership is being questioned by some analysts.
People, companies and countries that were economically weak before the recession will be the slowest to see recovery. Some strong companies and well organized people have been able to tighten their belts and recover nicely. Other segments of the world economy may never recover what was lost to the recession. It has been said that money is one of man’s most important inventions. Just like most inventions money can be blamed for much human suffering. People at the lowest economic levels suffer the most direct and personal effects of an economic recession. As part of any post recession evaluation the plight of the less fortunate should be examined.
Economists look at their subject from many different angles. Some see the economy as a global entity; some see it as a national unit but very few see the economy the way the street-level consumer does. These people are the worst effected and slowest to recover in any major recession. The long-term fate of this group should be part of the post recession evaluation. The deeper a recession gets the greater the number of street-level individuals become victims. On the other hand any recovery must be supported and maintained by the same people who suffered in the collapse.
A growing economy requires consumer spending in order to maintain momentum. Consumers must have the resources and the confidence to purchase the goods that in turn push the producers to invest and grow. When the people stop buying, nothing can prevent economic slowdown. When the people begin to spend their resources on consumer goods the economy flourishes. Neither the stock market nor the government can deliver the same positive impact as a confident and energetic consumer base.
There are two major philosophical differences concerning the government’s manipulation of an economic recovery. Both of these concepts have some validity and both have some flaws. One side believes the better approach is to promote business investment to drive economic growth. Another side of the argument believes promoting consumer spending is the most effective way to influence the economy. Years of statistics and research still leave the question unanswered. The proper application of both approaches is the best answer. The proper balance of supply-side and demand-side influences by the government requires research and planning.
In this most recent recession the economy was falling precipitously and immediate steps were needed to halt the decline. It was not possible to spend several months in research and planning before acting. Now that the recovery has begun there is a need to do some research and planning. Adjustments are needed to correct for inflationary pressures caused by deficit spending. It is important that adjustments are well thought out and openly explained to the public. Consumer confidence is bolstered by a government with a workable plan. It is important that the public regains respect for the government.
It is vitally important that the consumer base maintains confidence in the government. Confidence in the government’s ability to maintain the reigns of the economy promotes consumer spending that will maintain the recovery and help stave off another recession. When elected officials take to the airwaves to bash each other personally and to belittle each other’s plans, the net effect is a decline in confidence in the government as a whole. An effective post recession evaluation will not degrade into a finger-pointing opportunity.
Bickering like six-year-olds is not the way to gain respect and confidence. Mature and intelligent discussion with a common goal is a much better way to improve the economy. Publicly acknowledging differences and showing a serious effort to work out an effective approach will dramatically improve consumer confidence.
Want to find out more about making ? Then visit www.Mis-Sold-PPI.com and find out how to start your claim today.