Christina Hinkle
Staff Reporter
In recent weeks, there has been a lot of news coverage and controversy over what is being called the “Economic crisis of 2008.” This has not only effected larger companies, some of which have been forced to declare bankruptcy, but is now starting to have an effect on our everyday lives.
As of now, several large investment banks have declared bankruptcy, which has increased the unemployment rate. Along with this issue, prices on things such as oil and food have begun to increase, along with a general trend of global inflation.
It is being thought that America is experiencing what is known as recession, which is basically a result of decreased demand, which usually occurs during a period of continued inflation.
So how does this affect us?
Well, with an increasing unemployment rate, many people are losing their jobs, resulting in personal financial issues. The growing unemployment rate is also making it more difficult to find a job, especially in bigger markets, and if this crisis continues, the will affect students who are graduating within the next upcoming years and their chance of getting a job. Amanda Gushard-Edwards ’09 says “this is something everyone our age should be worried about. Even though it may not seem like it now, this is affecting each and every one of us and will continue to until changes are made.”
This is also effecting loans, which has the potential to be disastrous for college students all around the country. Because the economy and banks in general are struggling so much, it is getting much harder to receive a loan. 25% of undergraduate students borrow $24,936 or more, but with increasingly financial struggles, banks will not be able to offer this much to future students.
Senior, Jamie Patterson said her parents are worried about the growing financial issues. “My parents have two more children who still have to go through college, and that is going to be much more difficult to do without the help of loans.”
With the overall increasing prices in the economy, a Yahoo! News story reports that “the holiday season could have its weakest growth in 24 years.” This is a result of the increasingly level of difficulty it takes to be financially stable in today’s world. With prices on every day items increasing so much, it is making it very difficult to have any extra to spend.
Several steps are being taken to help improve the current financial situation, but the economy is currently in such horrible shape, that this is not something that will be solved overnight. According to a Democracy Now! article, President Bush and other congressional leaders are responding to this crisis by working to release about $150 billion in additional money into the economy.
Also, On Friday, October 3, the President and Congress signed a $700 billion bailout bill, in an attempt to avoid further economic financial issues.
This story has been changing daily, and although it might not seem important now, it is vital to keep up with this issue and the growing concerns of the American economy. There is hope for improvements, but since things are so bad now, no instant relief can be offered. This “Economic Crisis of 2008” is at a peak and it is more important than ever to be made aware of the repercussions of this crisis along with steps that can be taken to prevent it from getting worse.