Is the United States in a Recession? You Bet!

According to a poll today on CNN, three quarters of Americans believe that our country is in a recession. A 2-1 margin agrees that the Iraq war is the leading contributor to this situation. Only 46% of Americans believed that we were in a recession last October.

What CNN isn't saying is that many Americans from all financial levels are reaching for their dusty old history books from the 5^th grade, and are beginning to brush up on our basics about what actually happened to cause the Great Depression. There was something about a stock market crash, but overall, our grasp of what causes a Great Depression goes something like this:

Prior to the Great Depression, Americans relied upon cheap credit to procure newly manufactured cars, furniture, and luxuries that resulted from World War 1 technologies. As Americans took out many small loans (similar to credit cards today) this created a period of prosperity showing.

As manufacturing and agriculture increased through the use of new technology, more of everything was available, so prices dropped. As people found themselves with home, car, business, and material goods loans to repay, while prices were dropping, they couldn't make payments.

Employment became scarce as businesses were closed, and as homes taken. People reduced their society into the Great Depression by believing that it would continue to grow beyond a high-point that never happened. Their goods depreciated in value instead of increasing in value making it impossible to repay debts.

Many people in this country today are living on credit for homes, cars, furnishings, food, business loans, and student loans. And we can all see the news.

Our paychecks are staying the same while our housing and gas prices rise. Going to college does not equate to a good paying job for many people; we now have degrees working in fast food because nothing else is available. Loans are not being repaid. People are losing their homes. Medical services are a luxury that some can't afford. The big Bear Stearns bank would have gone under if it hadn't sold for a token 2.00 a share.

In my opinion, we have been in a recession for the last few years, and are now nose diving into another Great Depression. If the government called in all credit card debts tomorrow, how many of us would be left standing? If gas goes to 10.00 a gallon and you do not get a pay raise to go with it, will you still be driving your car?

My personal situation aligns with many others in this country. Our doctor visits just increased to a 50.00 charge through the door before services; I don't have insurance. I don't use medical services any more. My car is parked; I help the environment by walking - or, at least that's what I told myself after I found that I couldn't afford both insurance and gasoline. I type with a snow beanie on; extensive heat is a luxury.

I'm not ashamed of my struggling situation; it's just a fact of life that many of us share today. Income is not keeping up with expenses, jobs are not readily available, and some of us struggle. We struggle despite advanced education in tow and we struggle despite working two jobs; we get creative and we cut back. We hope for a better future that just might not be coming.

Globally, our country can not compete any more. Our education system ranks low on math, science, and technology scores. The products that we produce are undesirable because of cost, even to us. We shop brands by price out of necessity, just as others on the planet do. Our crops are failing in some areas because of weather and diseases.

I don't agree with the CNN pole that the Iraq war is the main cause of our recession situation, but it certainly is a contributing factor. We can't help those at home while we are going into debt abroad. The Iraq war seems to be about our country trying to procure the oil that we need to maintain our current status quo; it just doesn't seem to be working. American oil companies are still afraid to go into the unsettled area.

I do not know what the future may bring, all I can do is to read about past history in hopes that it will provide an answer to what tomorrow might bring. Yes, I agree 100% with the 75% of Americans on the CNN pole today. We are definitely in a recession. I just hope that we can pull out of it before my situation declines into a full blown depression status.