Someone please, explain to me WHY AND HOW the economy sucks?

Question

ok, i know this is a dumb question but i need to know because i already know starbucks is going down the drain and other places too but why? is it the war is it the gas what is it and what is it effecting and how and why and just, please help explain this situation

Answer 1

The banks are in trouble so credit is drying up.

People and companies can't borrow anymore money.

People are in debt to their collective eyeballs and are finidng it more practical to just declare bankruptcy.

The credit crunch is serious enough to put the whole global economy into the tank.

This is all due to irresponsible lending practices in the USA.

Answer 2

they suck the life blood out of us.

Answer 3

wait till the Government goes bankrupt

like any business, the line of credit will run out for the government also, and won't be able to pay for the war, pay back social security, and won't be able to pay back the loans they take out, like china for the stimulus checks, and trillions to the IMF world bank,  all forcing,  yup, you got it, the USA to go bankrupt

God i hope i am just crazy and know nothing about world economics and business practices

Answer 4

Friend---it is not a dumb question at all---after all---not everyone is a news-junkie like many of us here-----the thing that really seemed to turn the tide was when they decided to turn the corn into ethanol--not enough corn to feed the life-stock----2nd big blunder was to make the truckers that burn diesel fuel to deliver every thing we obtain pay so much for diesel fuel-----these two factors has caused a terrible increase in the cost of doing business and is snow-balling----we need to do as Senator McCain has planned to build more nuclear reactors to make more electricity so we can power the electric cars we will need----to utilize our own resources by using clean coal technology---wind power----by drilling for oil in America in the places where the oil is abundant that congress is refusing to permit----if you were to look at his energy plan you would see that it would create many high dollar jobs for Americans thereby establishing a broader tax base----this should turn things around for us soon.

Answer 5

prices of necesities go up  banks hold less money people dont make enough to pay for those necesities.

it all comes down to the value of the dollar.

when the value of the dollar goes down the state of the economy does too. if you read about the great depression it will help you understand alot.

hope that helps :)

Answer 6

Good old US of A GREED at the top.

The same reason you keep scuttling world trade talks as another answerer said.

Bush undertook huge spending to swell profits for his oil and arms owners while simultaneously drastically cutting income through tax cuts for his extremely rich buddies.  You try buying a house and chucking in your job the same day and you'll get the idea.

Then, the banks have for some time been lending mortgage money to people who could not afford repayments under normal lending criteria.  In a boom economy, this was OK.  When the GOP killed the economy though, the borrowers couldn't make repayments and the house of cards started collapsing.

Check out 'United States national debt' on a search engine and divide by your adult population to see what you owe personally for the neo-cons' war.  You had a tidy surplus pre-GOP.

Answer 7

America simply cannot trade fairly with the world!!

They have collapsed the free trade talks every time and this time it looks for good!

All over trying to force the world to take American cotton.

So for the sake of cotton America is becoming a pariah state that other countries will avoid buying from.

The one thing that will grow in America is the unemployment lines!!!!

Answer 8

a lot has cause all of this.

1. the most simple thing is  that. gas is so expensive people just can't ship things. like your clothing, shoes, laptops, food.

cuz most of those things like clothes are  manufactured overseas. which costs money to get back to the us.

2. peopl ehave been taking out a lot of loans and what the banks do is ask for more money when they are paying them back.. the problem is, they aren't getting  paid fast enough

3. mortage is bad because people are buying homes they can't afford . which means they can't pay for their house.

what can we do to help? stop wasting money in iraq,

buy food that is locally grown, it's better for the environment and it saves you some $$

the common economic concepts supply and demand.. when people drive gas guzzlers and every family has two cars. there isn't enough to go around, so they charge more. if everyone stopped needing so much gas, they would have no need for prices to be so high because there's just enough for everyone.

Answer 9

I heard it's because the american dollar is going down. The american dollar is actually a stock. This affects everything. Don't take what i say word for word though.

Answer 10

No such thing as a dumb question. How else would you learn?

First of all, capitalism has business cycles. We try to moderate them in a number of ways, but they still happen. Always have, always will. There are good times and bad times.

In America, the system has taken two pretty good-sized shocks in the past year. The banking industry has taken some silly risks with loans, etc, Those bad loans come due, and the industry suffers. When the banks sneeze, America gets a bit of a cold.

Then there's the matter of gas prices, which factor into a number of elements of the economy. It takes gas to move food to market, it takes gas to get us to work, it takes oil to heat our homes, and so on. Gas takes a big jump, and what happens? Prices go up. The people drive less, and they switch to fuel-efficient cars. Another big shock. American automakers can't sell big cars and trucks as fast, and they can't lease them either. Some major retooling is in order there, and it takes time.

OK. The federal government is already financing the war in Iraq through deficit spending. In other words, we're spending billions we don't have. Everyone would rather borrow money from the federal government than anyone else, since the U.S.A. can't go broke. That crowds other borrowing in the economy. It probably doesn't help the value of the dollar overseas, which affects the price of oil as well as some other goods too.

So, times turn a little bad. Starbucks realizes that it doesn't need a store on every single corner, and Bennigan's can't come up with a way to attract mid-range restaurant customers when people are trying to save up enough money to drive to work. And businesses close. Etc.

That's an incredibly oversimplified version, and every single point probably could be explained better and more fully by experts. But that gives you a hint, I hope.

Answer 11

George W. Bush