‘If we see the data the current recession is US has most severe face since the World War II.” States Martin Feldstein, a senior economist at Cambridge group.
Normally Economists define a recession as two consecutive quarters of economic contraction, something that can only be measured after the fact. The meager GDP rate and sharp decline in the purchasing power of the citizen is making the scene clear and forced one to say the economy in on very bad track.
The soaring oil price meanwhile is the main catalyst that has strained the consumers as well as the businesses. The first consequence of this price rise has seen in the transporting system and a couple of airlines have just hiked their fare that is affecting the common people in many ways.
Soaring oil prices, in turn, are driving up prices for everything from food to electricity, threatening to end years of modest inflation. Gold prices hit a fresh record yesterday, as investors embrace it as a hedge against inflation and a weakening US dollar, which remained at lows against the Euro.
Job firing and harder scene for the employment is another face of this recession. Many of US citizen loosen their jobs only on the reason that their employers are unable to cope with this economic disaster. The no of jobs reduction has reached to lacks and still the employers are not finding other ways to fight with the situation.
It is to be noticed that rising prices everywhere have entailed the citizen to spend less that seeing as the historic frugality with the US citizen. People are finding no way to come over this situation; however they are not getting some hope with the bailout plan initiated by the federal government.
