In the mist of the worst recession possibly since the Great Depression, many of us are feeling the squeeze of unemployment, losses of our homes, and bankruptcy. Don't fret a turnaround could be near; Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 3.5 percent in the third quarter of 2009. This by historical standards marks the end of the recession. Nearly at the same time unemployment spiked to 10.2% in October, the highest since 1983. Could this be a paradox? Hardly, unemployment is a lagging indicator in our economy, meaning it will get worse before it gets better. It is obvious that the only way to pull us out of this dire slump without creating massive inflation from all of the stimulus is to create jobs. Put people back to work and lower this ungodly unemployment rate. So, my question to the blogging community is how do we do it? Where is there enough demand to create jobs? Health care? Food service? Job creation has to begin with a demand that everyone has in common.
I agree with unemployment being a lagging indicator of our economy. Even though the unemployment rate is high, companies are hiring. Regardless, I believe we are not out of the woods with the recession cloud hanging over our heads, but I do think the economy is recovering every day that passes. Many have said that the stock market is a future indicator of how the economy is doing. I think this is very true. More and more people have been investing their hard earned dollars into the economy by way of the stock market, clearly an indication of increasing confidence in the economy. I understand people are hesitant to invest or to take their money out from under their mattress, and I don't blame them, especially the middle to lower classes. But as the economy recovers (and it will) people will hopefully learn from what has happened and make better decisions. Basically what I'm saying is the economy is a reflection of ourselves. The more we put back into the economy, the faster it will recover.
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