The state of the economy: When can we start using the "D" word! Yesterday my kids had me take them to the McDonalds in Auburn. Auburn McDonalds has one of the nicest play areas around. While I was there I picked up the front page of the Fort Wayne Journal Gazette and started to read it. One of the headlines read "Plunge in spending worst in 25 years". The article said this "Spending cutbacks hit everywhere last quarter. Shoppers chopped spending on cars, furniture, appliances, clothes, food and transportation. Businesses dropped the ax on equipment and computer software, homebuilding and commercial construction. And overseas sales of U.S.-produced goods and services tanked as foreign buyers grappled with their own economic woes.". I also read about the Acme Bar and Grill closing and it has been in business for 68 years. Circuit City is going out of business as well just to list a few.
My question is when can we start saying we are in a depression? No, I don’t mean maybe the current state of mind. I mean the current state of our economy! Recession nothing, every time I turn on my TV or see a piece of news there are more new layoffs. Where does it all end? I, like everyone else, have cut my spending back. I don’t believe people will spend money like the used to even if things recover. I know I have gotten used to the way things are and I am just dumb, fat, and well I would say happy, but with the threat of unemployment…
The problem here is that what I am hearing is business is cutting back to, because they feel they have to. First they lay off people. This takes money out of the economy. Then I start hearing about concessions in salary to avoid more layoffs. This too takes more money out of the economy. What we need is jobs for these people to do and get people back to work, but what do they work at? I am not sure manufacturing will ever be what it was when this is all over. I am not sure the Technology industry will ever be the same. So what is it they do?
Ok, If no one else will say it, were in a DEPRESSION! I have lived through a few recessions and have never seen anything like this. If this is, by chance a recession then it must be the grand daddy of them all! This is just my humble opinion