U.S. Economy Not So Great, Even Before This Recession
Our economy is shrinking, inflation is increasing, and it looks like it's time to tighten our belts and settle down for the worst. But were the times we are leaving really so great to begin with?
For the first time since we've been paying attention to such numbers, the median family income (from 2000 to 2007) has actually decreased during a period of economic growth. Real median family income more than doubled from the late 1940s to the late ’70s. It has risen less than 25 percent in the three decades since.
According to New York Times writer David Leonhardt, "the larger point is still crucial: the modern American economy distributes the fruits of its growth to a relatively narrow slice of the population."
A responsible economy wouldn't allow this to happen. What's going wrong?
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Globalization has many
Globalization has many favourable effects, but it has the worst deffect, that is the greater income and wealth concentration and with a growing population around the world, the problems giving, food, education, health and remunerative employment for all families become a really difficult threat.
The proof is that it is happening in United States, so what can we expect from developing countries, which have to face protectionism of the agricultural sector and the absorption of the markets by multinationals.
The great recession
Many lives are being affected day by day. I guess, government has a plan for this, and I really hope so. During a recession, like the one we’re in, a lot more people are going to need them, and it is a good thing that they are there if you need one. What is the difference between “recession” and “depression”? Well, in plain and simple terms, a recession is where the American economy, which is measured by quarters, has three or more quarters of a year, or every three months, where the total of things made here, or productive output, is less than it was in the previous three months, or quarter. So if 9 months out of a year has less production than the previous 9 months, then the economy has receded, and is therefore in a recession. A Depression is a long-term recession that results in higher levels of unemployment, and low levels of production, income, and also trade and investment. In short, one is bad, but the other is even worse.
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