Why is the economy so bad?

Question

Why is the economy so bad?

Answer 1

Bush sucks. That's why.   I have no idea if thats really why, but I thought it sounded good :o)

Answer 2

Prices rising above the rate of inflation, the property market rising with house prices higher that what the average person could afford, people having the 'I want this, it's only a couple of pound, money no object' attitude.  People have suddenly realised that they can keep on spending money that they don't actually have (i.e. spending on credit cards) so they will only spend money on what is essential resulting in less spent on luxuries on the high and shops taking in less money from customers.

People also have a fear that they could lose their jobs so they want to be able to live through this period of uncertainty in the best possibly way.

Answer 3

consumer spending is 70% of the economy, and with credit tightening people are forced to spend less, and this in turn causes more unemployment and fear.  The fall of the dollar is causing food inflation compounded with the effect of other nations becoming more prosperous, and oil prices adding to the transportation costs, and wage inflation.  

i don't want to go on cause there are too many problems, but having a strong army to get(steal) resources from other countries may be the best thing for us, and forcing other countries to accept our dollar while we continue to devalue it, and after a point the dollar will be low enough for us to export more goods to strengthen our economy