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My humble observations about a possible American Recession. The worst is yet to come.
I recently read that 1 in 6 people from West Virginia are collecting food stamps. I also read that in 2007 Food Stamp enrollments in Rhode Island have increased by 18%. While I can not speak for the economic conditions in West Virginia, I can speak for my observations in the State of Rhode Island where I live.
On Saturday March 29th I went to watch my daughter’s band concert at their middle school. Before the concert started, the band director asked for everyone to turn off their cell phones. I believe I was the only person in this huge auditorium that did not have a cell phone or a monthly cell phone bill. Even the children (as young as 6) in the audience had cell phones they had to turn off. When the band members started to fill their seats on the stage, parents went running up to the stage with their video cell phones and video equipment in order to get their children on video (I’m not different in that I had my video camera).
After the concert, we went to the local mall. We were not able to go shopping, since I was unable to get a parking space. We decided to try to go the mall during a week day in order to try to avoid the crowds.
I often wonder what is happening with the American economy, if anything. I see lots of nice cars on the road. I see a lot of people buying $50 jeans at the Gap. And I see lots of people with expensive cell phone plans. I understand that maybe some of these people have gotten rid of their regular phone line and substituted that bill with their cell phone bill. However, I also know that cell phones have a lot of hidden charges.
Is there really a recession going on? Is it being fed by the media? Is it just a political game in order to for the presidential candidates to have something to talk about? Or is it a growing separation between the have and have-nots? I believe that it is a growing separation between have and have-nots.
I just am lucky enough that I do not personally see the growing Food Stamp enrollment in my state. Does it exist? I’m sure it does. There are too many people that have been working low paying jobs that can survive for the long-term. As the dollar decreases in value and gas prices rise, the people with the low paying jobs are of course hit first and hardest.
People with higher paying jobs, that are obviously the people filling the spaces at the mall and buying cell phones need to take notice. You are next. Politicians will try to redistribute wealth through taxation – that is being done already. Politicians will print more money that will raise inflation- that is being done already with the economic stimulus check.
Bottom line- work hard, educate yourself for a better job, and save your money for tough times. I believe the worst is yet to come. The middle class will soon get hit.
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