The holiday season is just around the corner and the question heard most around this day of feasting and family gathering is: What are you thankful for? The picture I included above is meant to be rather ironic when you read the rest of my blog; because this blog is about the economic effects this recession has had on the upcoming holidays. 15.7 million Americans are currently unemployed and 35.6% of those have been unemployed for 27 weeks or more. As you can imagine there are some families that a financial loss of that magnitude would be devastating to. Some families will be scaling back significantly, or even eliminating holiday festivities. I think this year more then any in recent history we should reach out to friends and neighbors and bring back the holiday spirit that I remember from when I was younger.
Has the government done enough to rectify this devastating economic situation? Pundits argue that the employment rates are always the last to recover after a severe economic downturn. The economy is back on the rise, the housing market beginning to see a re-bound, and job cuts are slowing more than expected, so the short answer then I think would appear to be that yes, the government has successfully negotiated the worst economic downturn since The Great Depression.
So then is the worst over? Economists agree that the worst may be behind us but that there is a long road to recovery that still looms ahead. The Commerce Department announced last month that the economy grew at a 3.5 percent pace in the third quarter, a strong signal that the economy is entering a recovery phase. Despite the hopeful signs the pace of the recovery is expected to be slow because of high unemployment and tight credit. Economists note that sluggish consumer spending will continue to weigh on the economy. The economists also predict rebounds in housing, growth from business spending as more companies restock lean inventories, and a rise in stock prices.
The matter of the fact is that there are still plenty of Americans without enough money left to put a proper thanksgiving dinner on the table, and even fewer that are looking forward to the countdown to Christmas that begins the day after. If the stimulus action taken by the government was effective then when can Americans expect unemployment to bottom out, or even begin to get better. Economists on the National Association for Business Economics or NABE predict that the current job loss rate, which shows signs of slowing, should bottom out by the first quarter of 2010, and most also agree that the 7.3 million jobs lost since the beginning of this recession should be re-gained by the end of 2012.
In a pre-Thanksgiving speech President Barack Obama had this to say “"We cannot sit back and be satisfied given the extraordinarily high unemployment levels that we've seen, we have only taken the first step in curing our economy." The next step that needs to be taken has yet to be clearly laid out by the administration but it is clear that any future steps will include a healthy dose of patience and faith. "Something that our economic team emphasized is that there are core strengths to the American economy that will put us in good stead over the long term," Obama said. He said the key is bridging that gap toward a more prosperous time and promised he won't let up "until businesses are investing again and businesses are hiring again."
With an end to this recession perhaps in sight it still seems only slightly easier to breathe this holiday season. Hope for the future is all some families have right now, a hope that tomorrow might bring a brighter day. Hope however does not put food on the table or presents under the tree. I am reminded of a Christmas cartoon that still runs every year; The Grinch Who Stole Christmas. Remember with me if you will of the scene when the Grinch has stolen all of the worldly goods of the people of Whoville, and what he discovers is that when they awake Christmas morning to find no presents under the tree or food in their cabinets they still are happy and grateful for what they do have: each other. This may be the same realization for literally millions of Americans. Faith sometimes can only take you so far, but this blogger, however idealistic the notion may be hopes that Americans across this great country of ours remember those that are less fortunate and remember the things they are truly thankful for.
Now of course I am not necessarily advocating that you go outside Christmas morning and take your neighbors hand in yours and dance around a Christmas tree; rather I am suggesting that in true American spirit it would be a good idea to make sure that special attention is given to those that are less fortunate. Helping out in a soup kitchen for example during these tough holiday times might be a viable solution or volunteering for any number of causes that struggle during this time of year. It could be as simple as making a donation or kind gesture, or even just a prayer would do. This holiday season make sure that you look at everyone around you with a kinder eye and maybe a smile, because none of us are immune to being in their position.
Happy Holidays Everybody
A Blog by Kyle Forry
Has the government done enough to rectify this devastating economic situation? Pundits argue that the employment rates are always the last to recover after a severe economic downturn. The economy is back on the rise, the housing market beginning to see a re-bound, and job cuts are slowing more than expected, so the short answer then I think would appear to be that yes, the government has successfully negotiated the worst economic downturn since The Great Depression.
So then is the worst over? Economists agree that the worst may be behind us but that there is a long road to recovery that still looms ahead. The Commerce Department announced last month that the economy grew at a 3.5 percent pace in the third quarter, a strong signal that the economy is entering a recovery phase. Despite the hopeful signs the pace of the recovery is expected to be slow because of high unemployment and tight credit. Economists note that sluggish consumer spending will continue to weigh on the economy. The economists also predict rebounds in housing, growth from business spending as more companies restock lean inventories, and a rise in stock prices.
The matter of the fact is that there are still plenty of Americans without enough money left to put a proper thanksgiving dinner on the table, and even fewer that are looking forward to the countdown to Christmas that begins the day after. If the stimulus action taken by the government was effective then when can Americans expect unemployment to bottom out, or even begin to get better. Economists on the National Association for Business Economics or NABE predict that the current job loss rate, which shows signs of slowing, should bottom out by the first quarter of 2010, and most also agree that the 7.3 million jobs lost since the beginning of this recession should be re-gained by the end of 2012.
In a pre-Thanksgiving speech President Barack Obama had this to say “"We cannot sit back and be satisfied given the extraordinarily high unemployment levels that we've seen, we have only taken the first step in curing our economy." The next step that needs to be taken has yet to be clearly laid out by the administration but it is clear that any future steps will include a healthy dose of patience and faith. "Something that our economic team emphasized is that there are core strengths to the American economy that will put us in good stead over the long term," Obama said. He said the key is bridging that gap toward a more prosperous time and promised he won't let up "until businesses are investing again and businesses are hiring again."
With an end to this recession perhaps in sight it still seems only slightly easier to breathe this holiday season. Hope for the future is all some families have right now, a hope that tomorrow might bring a brighter day. Hope however does not put food on the table or presents under the tree. I am reminded of a Christmas cartoon that still runs every year; The Grinch Who Stole Christmas. Remember with me if you will of the scene when the Grinch has stolen all of the worldly goods of the people of Whoville, and what he discovers is that when they awake Christmas morning to find no presents under the tree or food in their cabinets they still are happy and grateful for what they do have: each other. This may be the same realization for literally millions of Americans. Faith sometimes can only take you so far, but this blogger, however idealistic the notion may be hopes that Americans across this great country of ours remember those that are less fortunate and remember the things they are truly thankful for.
Now of course I am not necessarily advocating that you go outside Christmas morning and take your neighbors hand in yours and dance around a Christmas tree; rather I am suggesting that in true American spirit it would be a good idea to make sure that special attention is given to those that are less fortunate. Helping out in a soup kitchen for example during these tough holiday times might be a viable solution or volunteering for any number of causes that struggle during this time of year. It could be as simple as making a donation or kind gesture, or even just a prayer would do. This holiday season make sure that you look at everyone around you with a kinder eye and maybe a smile, because none of us are immune to being in their position.
Happy Holidays Everybody
A Blog by Kyle Forry
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