Accomplish Victory Essay examples -- Economy, Economic Downturn, Reces

What is a recession? A recession is declared once the GDP is negative for two consecutive quarters or more, a few quarters before is actually the start of an economic downturn. GDP is defined as gross domestic product and that basically means the total value of goods the United States has produced, for the year. The first few signs of a recession are negative growth followed by a miniature positive growth. Because American citizens don’t have the money to spend they don’t spend and the consumer spending aspect of the economy takes a drastic downfall. Unemployment rates also have play in determining a recession (22). Proper money management and finances could bring an economy out of a recession. There are major flaws in the way we live that people are doing nothing to fix. Most people are in debt, in late 2005 â€Å"wage growth was shortchanged because 46 percent of the growth of total income in the corporate sector was distributed as corporate profits, far more than 20 percent in previous periods.†(24) Household income had fallen five years in a row and was 4 percent lower. The average wages of Americans are low. The growth of the American population is expanding very rapidly; the job count compared to population growth is almost unrealistic. Only one point nine percent more jobs have come up since the beginning of the last recession. The unemployment rate is four point six percent That means that a lot of people do not have jobs; the percent of people that have a job was one point three percent, So that means that more people are not working than people with a job. (24) Poverty was sky rocketing in two thousand; the rate was eleven point three percent and rose in four years to twelve point seven percent; that is approximat... ...spend then how is making goods and services more expensive going to help? Obama is a very good man with what I believe to be good intentions. But his money managing skills could use a lot of work. I do not see what does not make sense to him if the United States is in debt then does he continually spend money on things that we do not need such as, visiting other countries, flying first class on Air Force One. Instead of trying to make peace treaties with other countries we need to increase education in schools and supply them with the money and resources that they need to educate children and make them able to run a country. Children are our future and if we don’t do a good job at making the future the best it can be then will end up in the same spot we are in today. This should turn this country’s finances around and soon enough we will be living in prosperity.