There seems to be an argument in the US about whether there is a recession or not.

Read this story in The Nation to get a sense of what is really happening in the US. Its about consumer confidence. We may be technically in a recession, but what we are really seeing is the beginning of a depression.

The fact is that when people are reading about other people having their houses repossessed and are seeing the price of consumer items like food and petrol going up to beyond their capacity to pay for those things as well as pay for the lease on the car they reach a point where they curl up into a ball and stop. That is what appears to be happening in America now. The media is ensuring that the ordinary man is demotivated to spend, while at the same time the Pres exhorts people to get more retail therapy and denies that there is a recession and pushes more tax breaks while spending more money on the military.

Is it any wonder that people are depressed or that there is a depression?

This entry was posted on March 13, 2008 at 11:08 pm. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Posted in Economics Main Page by Chris Gilbey No Comments Yet