Notably, since November of 2001, economic recovery in the US has been weaker than ever in the entire postwar period. There is evidence all over to show for this. First, inflation levels have soared over the past few years. The household income in general has been falling for a period of almost five years progressively. It is chronicled that household income was 4% lesser in 2004 than it was in the year 1999, which doesn’t even touch unemployment rates. Actually, the rate of unemployment is much lower because of the many people who have given up searching for jobs. Among others, being buried in a pile of debt is probably the biggest economic problem in the US.
Over the last three decades there has been a significant increase in the corporate debt, government debt and household debt compared to the slow growth of the GDP. Why is household debt at an all time high? It is because Americans have been trained to pay for almost everything with debt. Homes are paid with debt. The same happens for cars and higher education. As a percentage of the gross domestic product, the mortgage debt has tripled since the year 1955. Did you know that consumer debt has increased by 1700% in America since 1971? Why is that so? Because, 46% of the American population will carry credit card balances from one month to the other.
Is America facing an impeding economic collapse followed by an economic depression? One of the worst environmental disasters in the history of America is the Gulf of Mexico oil spill, which has also had major economic implications.
As we celebrate this US Independence Day, it’s important to not get caught up on these grim statistics; instead we need to focus on how our economy is improving and what we can do for ourselves to help our own bank accounts. Budgeting is always very important, but it’s often something we lose sight of. And that’s not just making a personal/family budget; it’s also sticking to it.
There will always be some economic problem in the US, but it’s how we deal with them that matters. So while we wish everyone a Happy 4th of July and celebrate our independence, it’s important to remember what struggles we’ve endured and overcome in becoming the nation we are today, and realize that we must continue to strive for freedom – both politically and economically – to stay as ahead of the curve.