And the Magic Eight Ball Says:Out Look Not So Good

While browsing through blogs on the latest issues I found an article by Mike Whitney regarding the economical future of the U.S. The message being sent out to the general populus, particularly Americans, was not optimistic, at best. Considering the blog came from The Smirking Chimp, a left-leaning blog, the article was not promoting the government and could be seen as biased. However the facts do not lie and the evidence is supportive of Whitney's theories of where the economy is headed. The article was lengthy and was hard to stay focused, however the pertinent topic of the economy and its decline made the article worth reading. The present crisis of the U.S. financial situation is what promotes articles of this nature being published, because the public is curious and nervous about what is happening on Wall Street and how it will affect the future and why people are going to read the article with a critical eye.

The underlying argument is that the government made bad decisions and allowed lax regulations on mortgage loans for banks which is now adding to the crisis that is predicted to only get worse. But the point is at this point in the game, what are you going to do about the decisions and damage already made? So the main argument is on how the government should handle the current situation to keep the country from going into a depression. In particular the tax rebate plan is dicussed and Whitney explains why the stimulus is not going to boost the economy enough to sustain the U.S. from going into a recession. Whitney writes the article on the assumption that the reader has at least a little idea of the current state of the financial state of the U.S.

The supporting evidence used by Whitney in the article are events that have already happened and the current effects that the U.S. is experiencing due to the decisions made by the government and the regulations they set. Whitney also uses basic economic laws and trends to support predictions on how and why the stimulus rebate will not be as effective as desired. Whitney uses outside sources and articles to bring in more information and knowledge to his article, which ties into his argument that the U.S. is in trouble. With a government and country supported by credit the downfall is now inevitable and decisions are being made. The government can choose write off credit with banks, or enter into deals that guarantee reduce losses on foreclosures, or do numerous things, but as Whitney was pointing out it will not be in the interest of the average American family. The banks and the government are looking for ways to lose as less as possible and to stay a float as long as possible, but they need the population for consuming and that is about it. The references and statistics Whitney uses throughout his article stresses how important and serious this crisis is and informs the general public so they can be educated as to how we got in this mess and how it will get worse before it gets better.

Whitney gives the reader a good idea of where the financial state is and a brief overview of where it is headed and it is convincing that he knows what he is talking about. The article is convincing but unfortunately there are no realistic solutions presented. Whitney concludes with giving the money back to congress and let the people vote on how it is spent but I do not see that happening. As far as Whitney's conclusions regarding the inevitable recession and the national credit issue is very accurate, well written, and educating.

The effect of the financial situation is the most pressing issue I believe the U.S. faces today. The effects are unknown and the damage is inmeasurable at this point. The decisions being made by the government will affect the country on every level and has the potential to reshape the American living standards. Since it is a presidential election year I am sure how the canididates propose to revive the economy has a huge effect on how the votes are casted. With the economy falling apart every level of society will be effected and like a chain it will be worse for the poor. Resources will be stretched thin and costs will rise, increasing the poverty level. It is very clear that this is a chaning point in America and the next few years will be shaky.