Tuesday, 30 May 2023

When and will the economy turn around?

I am no economic expert, so my statements may sound ridiculously absurd and ignorant. However, listening to all these pundits expressing their predictions about the way the economy will go makes me wonder what they are basing their statements on.

OK. The economy is shrinking. What happened? The banks messed up so badly that they had to be rescued. The housing market declined because the bubble burst. Businesses shut down because they could not make an adequate profit and no one came to their rescue. People became unemployed. Now they are spending less. The economy continues to shrink, more people are unemployed, so they are less likely to spend. The vicious cycle continues.

Experts are predicting further contraction of the economy for the near future. From what I hear, different experts predict different times at which the economy will improve. Some say this year, some say next year, some say not for a few years. But for those saying this year or next year, they are also saying that the economy will continue to shrink before it recovers. So, what is the basis for saying that it will improve? No one has stated how that was going to happen. If people are not given jobs with adequate pay, they will not spend.

Are there really plans to get more jobs out there? I’m hearing people complain about making applications for positions that are oversubscribed. Where will the new jobs be? Are they not advertising it out of fear that they will be oversubscribed before they are well-organised?

They need to put money into providing jobs in order for people to start spending and kick-starting this economy again. They have bailed out several large companies, such as the car companies. Unfortunately, these people might still lose their jobs if no one is willing to buy cars at this time. What is the point of making more of the products that are less in demand?

I am not an expert, so I do not have a plan. But it seems the government needs someone who does.

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