As the Economy Continues to Fall into a Downward Spiral

According to the New York Times, over 80,000 jobs were cut this past month as smaller businesses and even major corporations struggled during the recession that started this past December.  As most of you probably saw on the news, or read in the paper ATA Airlines recently declared bankruptcy, stranding travelers in Chicago and leaving thousands of people without jobs.

Unemployment rates have risen up to 5.1%, which is the highest the country has seen since Hurricane Katrina.

It is in such an economy that you will find people struggling to find a job, any job.  And while the average hourly salary has increased over the past year by about 3.6% the average cost of living increased by 4%.  So how is the average American expected to make it in this struggling economy?

Our three Presidential hopefuls have each sounded off on the economic crisis.  Clinton believes that once we finally get past the denial over the state of affairs in this country that we can finally make some changes to improve our situation.  Obama also calls for change, and suggests aid for homeowners and a second economic stimulus package, on top of other changes.  And McCain is looking for tax breaks and assistance for lower income families and support of a free market system.

As a young American facing a recession scares me a bit, when I see the cost of gas rise and realize how much my commute to work is costing me, how much is too much?  People around me keep telling me that with the real-estate market the way it is NOW is the time to buy, why rent?  And while I see the validity in their statements I’m unsure.  With the unemployment rate rising, and the cost of living rising above the average increase in salary who’s to say that I’m not at risk of losing my job and would be at risk of foreclosure should I decide to buy.

Only time will tell I’m afraid whether we will continue to slip farther into a recession, or if we can stop on the cusp and pull ourselves back out…