The American Economy and Election ‘08

The American economy has spun into an economic meltdown, including the largest drop in GDP growth since 1980. The constant blow to the nation’s consumers has drastically reduced spending power, causing depression worries. A widespread drop in housing prices, dips in the stock markets and insolvency by highly trusted banks have left people with no other option but to stop spending and start saving.

S&P/Case-Shiller statistics revealed that house prices in 20 big cities fell at the annual rate of 16.6%. There has also been a rise in the unemployment rate (6.1%) and is expected to move upwards further. Bloomberg forecasts that there may be another 0.2% increase in the last one month bringing the final statistics to 175,000 jobs lost. Reliable bank and credit sources have also lost shape and credit levels had already fallen to 3.7% in August. Around the world, the Japanese and European economies are nearing recession and the global credit crunch has affected many more.

Tomorrow’s US presidential election will help decide the policies that will be in force for the next few years. Cutting taxes can leave extra cash, and credible plans for long-term fiscal health need to be put in place. Obama’s plan to put $45 billion in reserve and investing $75 billion has got him 82% support from one of the leading online discussion network, Minekey. His plans to introduce a tax credit of up to $500 per person and many more such similar benefits may work well for the economy. Economic policies that act as stimulus to the present depressing economic status can act as a catalyst in raising current standards.

Going by the trend set by people the world over, at the popular discussion network Minekey, Obama’s policies are well received and appreciated. Opinion polls conducted by Readers Digest also shows a mixed blend of nationals voting for Obama’s strong economical and financial policy proposals. A reality check on what is actually being discussed and agreed upon can be found at many of the online election sites, that have contributed to creating awareness about the current economic and political scenario. Strong recommendations on where to invest in the coming months and how well taxes can be cut down can be got from these discussion boards. They have not only generated support for the candidates, but also helped users to vote, discuss and express freely their opinions on the probable effects of these policy proposals.

What happens after November 4th, 2008 is yet to be seen. What has happened so far may go for the better or worse after the introduction of new policies. The American economy and the election’s outcome can make a huge difference in global markets. While at home, jobs can be restored and houses can be saved, markets worldwide can manage to cross over again, if this consistent slump down can be slowed down and stopped eventually. The trend may continue up to the first quarter of 2009, after which there can be seen some vital signs of improvement. Policies implemented after elections may also take its own time to restore economic normalcy and stabilization. Meanwhile, those who have managed to save and do not use credit are those who may be able to sustain the economic depression.