On the verge of another depression?

[zzzz]

The perception out in the heartland is that the economy has stagnated and started to regress. Earlier this year the job situation seemed to be getting better but for the last several months it had stabilized. Regretfully last month the job situation got worse. Layoffs have stabilized but this only counts permanent employees laid off not the temporary workers let go that replaced a lot of the people laid off in the previous recession.

The people are getting that uneasy feeling that something bad is just over the horizon. The Federal government’s attempt to perk up the economy has failed and the prospect of looming tax increases at the end of the year has put a damper on consumer spending. People are still in debt and the ability to pay off that debt will decrease in January with more of your paycheck going to taxes. If we do indeed go into another recession (if we are not already in another one) it may be reminiscent of the depression of the 1930’s. A chilling prospect.

And what would a depression be like? Someone in another thread suggested the US was in a French revolution situation. The circumstances were different but I can see where in a depression the rich would be viewed like the French aristocracy and the middle class and poor would be the people. The haves and have nots. The federal deficit … would blow up just to feed the people. Inflation, joblessness, homelessness, hungry people and many other effects would become widespread. The National Guard and Army would have to be in the streets to help control the populace. This is not the same compliant populace we had in the 1930’s. During the 60’s we had riots, cities burning, looting all over the country and that was during good economic times.

Will it happen? Maybe, maybe not. But the people are starting to fear that something bad is coming and that we cannot stop it.

 

[lizzie]

Imo, we will have one shortly, or in the long run, because what we are doing can't work. We consume much, and produce little, which puts us at the mercy of those we borrow from.

 

[Middleman]

I believe that the economy will slowly rebound. Right now there are a lot of people who've had a wake up call. They are getting out of debt, saving more money, and cutting back on unnecessary spending. Credit card debt is going down and savings are up.

Our economic boom was built on the house of cards of speculative investments, and irresponsible consumer spending. In order for America to advance again, we need to get on more solid ground. The Federal government, unfortunately, hasn't gotten this message, and this will undermine the recovery. It's looking for a quick fix to make things look good before the next election.

 

[Douger]

It's no depression.
It's a permanent collapse with no recovery possible. EVER.

 

[loosecannon]

It's no depression.
It's a permanent collapse with no recovery possible. EVER.

more or less. At some point we will reach a new normal, or bottom and then growth will ensue.

Most people don't realize that it may take a decade plus for that to happen.

 

[Middleman]

I agree, it's going to take years to truly recover. And, our glory days are probably behind us. But, that doesn't mean that life in America will be one of grinding poverty. We still have many positives in our nation. There still is opportunity to be had in America.

 

[zzzz]

The answer my friend is blowing in the wind!

[ame=http://www.youtube.com/watch?v=DFvkhzkS4bw]YouTube - Blowing in the wind[/ame]

 

[lizzie]

I agree, it's going to take years to truly recover. And, our glory days are probably behind us. But, that doesn't mean that life in America will be one of grinding poverty. We still have many positives in our nation. There still is opportunity to be had in America.

I don't predict that our "glory days" are behind us, but I do predict that we will be cutting out alot of deadwood before we recover, and it will take a significant length of time. We will have to experience an entirely new and realistic approach to what we can do at the social benevolence level, and the population as a whole will have to get on board with accepting responsibility for their own lives. It will be painful, and it will be slow, but it will eventually happen, or we will decline into a country marked by long-term grinding poverty.

 

[Douger]

It took Argentina almost a full decade.
Here's what you can look forward to.
[ame=http://www.youtube.com/watch?v=rH6_i8zuffs]YouTube - Argentina's Economic Collapse - Part 1 of 12[/ame]

 

[Middleman]

Douger. it's really difficult to take anything you say very seriously. You seem like an entirely fringe type person, very negative much of the time, and generally dis-credible.

 

[loosecannon]

I agree, it's going to take years to truly recover. And, our glory days are probably behind us. But, that doesn't mean that life in America will be one of grinding poverty. We still have many positives in our nation. There still is opportunity to be had in America.

I don't predict that our "glory days" are behind us, but I do predict that we will be cutting out alot of deadwood before we recover, and it will take a significant length of time. We will have to experience an entirely new and realistic approach to what we can do at the social benevolence level, and the population as a whole will have to get on board with accepting responsibility for their own lives. It will be painful, and it will be slow, but it will eventually happen, or we will decline into a country marked by long-term grinding poverty.

dead wood indeed.

It just occurred to me this AM after seeing an article about CA's rising health care costs that all the data generated to calculate the costs of the new healthcare programs were based on much rosier employment prospects.

And the dems just wanna keep on spending, more, and more....