Problems Facing the American Economy

During the past eight years the American economy has taken a turn for the worst. The problem started on September 11, 2001, which was a day of infamy. It was one of the worst terrorist attacks on American soil in U.S. history. Many industries were affected by this tragedy. One industry in particular was that of airlines, which came to a 24 hour halt. This was also the first time in U.S. history that all of the major airlines had grounded all of its planes. Some airlines had lost so much money that immediately layoffs were considered to temporarily resolve newly created financial problems. These acts were very typical of corporate America. The solution to a company's financial problems is not at the bottom of the corporate hierarchy but it lies within upper management.

Over the next couple of years America grappled with the debt of her nation. The affects of an economy bound for a recession could be felt from Wall Street to Main Street. America as now engaged in a bi-lateral war against terrorism; one in Iraq while the other one was being fought in Afghanistan. The war effort was costing the American economy millions of dollars a day. The American government was given a blank check to basically spend money that it did not have. The previous presidential administration was in denial. They did not want to accept the fact that we were now in a recession. It made many mistakes that would put American's financial stability at risk. The price of freedom became a financial burden on the American economy.

In the past wars were very profitable for the American economy. This war that America is currently involved in has only been profitable for a few areas of commerce. Oil, steel, and plane manufacturers have all benefited from the current war that America is in engaged in. Many other factors have affected Main Street Such As: increased unemployment, mortgage meltdowns, and an unstable stock market. Although we have a new presidential administration that speaks of fresh new ideas that will improve the current failed economy, yet the problems remain unchanged. There are many analysts that believe the American economy is truly on the road to recovery. I personally believe that there are still more difficult times ahead. Things will get much worst before they get better. There is a strong possibility that the recession could be upgraded to a full scale depression.