What are the reasons for the current economic slowdown?

Question

specifically- i.e like rising gas and food prices

Answer 1

No credit.

Without credit - no-one will lend anyone any money.  Houses dont get sold because people cant get mortgages, so everyone starts tightening their belts for tough times ahead.  Less is spent meaning businesses shrink, so people lose their jobs, and so belts are tightened even more.

Then add onto that demand for oil and raw materials in China, causing price rises for food and fuel.  So things are more expensive, and you guessed it, people tighten their belts.

If no-one is spending the economy stagnates.

Answer 2

Global competition, too much imports and not enough exports.  China and India are also thirsty for Gasoline, so the Arab nations are cashing in..what we need to do is drill for more oil..Alaskan Oil..in our Turf, so we wont' be so dependent on the Arabs for their oil.

Answer 3

3 reasons:

1) George

2) W.

3) Bush