Since the beginning of the US economic crisis, the American public has been debating whether or not the US economic recovery is actually good for the economy. Many economic pundits and researchers have begun to question whether or not the economic stimulus package put forth by the Obama administration is creating a bubble economy, or if we are already in a “bubble economy.” The economic crisis that the US experienced in the last two years, much like the Great Depression of the 1930s, created a large wave of consumer debt and left many Americans with extremely low credit scores.
The recovery package of Obama's administration tried to reign in the storm of consumer debt, but did not completely solve the problem. Instead, the economic stimulus package pumped money into the financial system and allowed banks and financial institutions to get back up to their feet in the wake of massive consumer debt. Since then, American consumers have been experiencing a bit of economic luck, being able to pay their bills on time and in full. The good economy has also enabled Americans to buy more manufactured goods at bargain prices. In fact, the economic crisis experienced by the US in the last two years has led to increased consumer spending.
If this economic recovery is going to continue to grow at the same rate that it is currently, it will not be long before we experience an even greater economic crash. This crash may come in the form of a depression, a Great Depression, or a Great Recession. As mentioned above, the US economic crisis of the last two years only set the stage for an even greater economic downturn. What will happen if this economic growth continues to slow or stall out? Some analysts believe that the US economic recovery will continue at about a rate of about three percent, which would be the lowest rate of economic growth since the Great Depression.
Some economic analysts feel that we are just in the beginning stages of a recession, and that we are far from the epic battle between the US economy and the rest of the world's economies. They argue that the US has recovered most of its economic losses after the Great Depression, and is now in the position to take advantage of the global recession. They say things are looking up for the US economy, even though they admit that we are still recovering from the effects of the Great Recession. Since we are still recovering, experts say that the US is on track to recover its economic losses, especially after it gets over the current recession. They also claim that the US will remain a strong and stable economy even as the rest of the world experiences an economic crisis. US economic growth since 2008 is being predicted to maintain or grow at about three percent in the years ahead.
For some, this US economic recovery is already good news. For others, however, this economic growth is not nearly good enough to stave off the looming economic disaster. In fact, it seems that the US might already be slipping into a deeper economic crisis, one that will lead to even greater US economic downturn. In order to prevent such a great fall in the US economy, experts suggest that the US government should do whatever it can to accelerate economic recovery in the country.
On top of doing whatever it takes to . . . . . . keep economic growth at around three percent, the US government should do whatever it can to stimulate the economy further. In the past, the US government has used fiscal policy to inject more money into the economy, but to no avail. Experts say that instead of using fiscal policy to offset the effects of the recession, which could spell doom for the US economy, the government should do what it can to prevent the recession from worsening. This should include more government infrastructure investments in the United States and more aggressive efforts to stimulate consumer spending. If the US government will commit itself to this strategy, it is believed that the US economy will recover from the recession faster than it is doing right now.