10/13/2011
As the recession started to get worse, ordinary people begain to panic and wonder if they were going to have jobs for very much longer; and they all started to stop spending, which made matters worse, because the money was not flowing to keeping the economy going. Unknowingly, people became their own worst enemies, which caused the losses of their own jobs. Each individual is directly or indirectly spending money that supports a lot of other people aroound them. Their butcher, baker, their other weekly food suppliers, their mortgage holders and bankers, too; along with the major purchases they make such as furniture and car makers - and all of the people in the different services industries that supply all of these people, along with the transportation industries that move all of the products and people. 45 million people lost their jobs. and when the government stepped in to shore up the economy, the government gave 1.3 trillion dollars to the banks to keep the economy from collapsing - and only 700 million to help people keep their jobs and pay their mortgages. The government made a large error in not making working individuals being able to keep working, because the government failed to recognize that the working people were also the other 1/2 of the equaton to keep the economy going. Stimulas spending on government infrastrure was only an afterthought, and even that money was spread out over three year's instead of the same treatment the banks and large corporations received of the 1.3 trillion dollars bail out. The major error the government committed, was that it should have bailed out the working people by 2 trillion dollars to keep the other important 1/2 of the economy working.The cascading effect of these errors, have highlighted the fiscal policies of other governments throughout the entire world; and has left the world economy teatering on the brink of collapsing ever since. Greece, Italy and Spain first come to mind, and there are other countries not too far behind them.
