The Worst Economic Gloom in 50 Years
The comments below are an edited and abridged synopsis of an article by Michael T. Snyder
Energy prices are soaring; food shortages are severe in some parts of the world; rampant inflation is out of control. Meanwhile, economic activity is slowing down everywhere. Some compare this crisis to the stagflation of the 1970s, but Snyder believes that is an optimistic assessment.
According to a survey just released, the percentage of Americans who believe the state of the US economy is poor is 83 times larger than those who believe that the state of the US is excellent. The same survey found the percentage of Americans that are not at all satisfied with their financial condition is the highest in 50 years.
One reason people feel this way is because the price of everything is going up.
The standard of living is falling each passing day, and that process is only going to accelerate. In an attempt to keep living the way they always have, many Americans are turning to credit cards, but that is only a short-term solution.
Meanwhile, economic activity continues to slow down. If US GDP is negative for the second quarter, it will mean the US is officially heading into a recession. Ultimately, the US is headed for a nightmare scenario that Snyder has been warning about for years. It took decades of foolish decisions to reach this point, yet leaders in Washington continue making foolish decisions. The truth is that there are no long-term solutions, only pain.