I know I’m not alone when I say my wallet and bank account nod a vigorous “yes” in answer to this question.
However, the answer is not as simple as it may seem at first glance.
I found myself reading financial news this morning – something of an unusual occurrence – because for the first time in my life I’m feeling the effects of the economy on my pocketbook. What I found out about the current state of our economy, as well as what improvements or changes I can expect in the future, took me somewhat by surprise.
Allow me to begin with the classically accepted definition of a recession: A decline in economic activity (Gross Domestic Product) that persists for at least two quarters.
We’ve all felt the effects of staggeringly high gas prices, the disaster that is the mortgage industry, slow home sales and deepening loan losses, so it’s no wonder a recent Gallup poll found that three-quarters of Americans think the US is most certainly in a recession, despite the fact that we have not yet had two successive quarters of negative economic growth. The study also found that “a majority say it is at least somewhat likely that the country will slip into an economic depression.”
I don’t know about you, but I’m sick and tired of getting nothing but bad news about the state of our economy, so have no fear, as I do believe I’ve found us some good news:
Yahoo! Finance reports that (are you ready for this?) we are not currently in a recession! Despite what many economists are predicting, our overall domestic growth has not yet turned negative– I’m sorry, what? Although some retail sales (i.e. automobiles and department stores) are down, there are also retailers that have been seeing increases in sales. For example, general merchandise stores such as Wal-Mart and TJX.
Aside from the economic stimulus package that you’ve all no doubt heard about (and maybe already received a check from), the government is making some very definitive moves to get our economy out of this slump. For example, in an effort to lower gas prices, CNN reports that the Senate voted 97-1 to stop filling the Strategic Petroleum Reserve for a full six months, which means we can soon start saving up to 25 cents per gallon in the not-so-distant future! The Federal Reserve also launched an aggressive campaign to cut interest rates to help boost an economy in the throes of a credit crisis, but is taking necessary measures against creating unnecessary inflation.
All in all, as much as we would like to hope for the best, I believe we should always plan for the worst. My advice is to continue to be a savvy consumer – find ways to maximize your pennies today so you won’t need to be pinching them tomorrow!
