The economic recession currently gripping America is causing massive job loss and company failures all across the nation. Many people are losing their jobs, homes, and cars due to credit problems or investments that have not worked out. Almost everyone you meet is wondering the same thing: is this recession ever going to end and when will the economy begin to improve.
As of today, economists believe there will be no economic turnaround until the end of 2009 at the earliest. It is also predicted that the recession will get much worse before there are any signs of improvement. Retailers across the country have reported sales figures that have dropped substantially. While February is normally a profitable month for retailers, this year they have seen their bottom line worsen.
Car manufacturers, construction companies, furniture stores, and appliance stores are just a few of the retailers being hit by the recession. Consumer spending is at an all-time low and these companies are struggling because of that. The only companies that seem to be having a good year are those in food, drugs and biotechnology. Economists are predicting that most companies will continue to stockpile assets, while laying off more workers, throughout 2009. They believe that unless these companies see a drastic change in the level consumer spending, they will refuse to spend their own money and cut back any way possible. This only causes the recession to worsen, creating an unavoidable cycle of loss and regression.
The impact of the $787 billion stimulus package signed by President Barack Obama is still unknown. Recent studies show that 55% Americans approve of how Obama is handling the economy while 39% disapprove and 6% are undecided. Public perception of the economic crisis, and of the government's competency in handling it, is very low and is contributing to the recession's growth.
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