In the past few weeks, President Obama has repeatedly told the press and the public that the American economy is still strong and that there is no reason for concern or danger of another recession.
Yet, that is not the perception of the general public. The Conference Board Consumer Research Center’s recent report said that the Consumer Confidence Index fell from 59.2 to 44.5 in the month of August. This is the lowest consumer confidence level since April 2009.
Americans are growing more and more pessimistic about the over all economy. With the weak job market, stock market bouncing all over the place, the continued record number of home foreclosures, rising prices on food and clothing and the congressional fiasco that took place on the debt ceiling and budget, people are afraid to spend what little money they have. Nearly 70% of the US economy is dependent on consumer spending, so when people are afraid to spend, it affects everything else.
Even though there are official qualifications to declare a recession and those qualifications have not been reached at this time, the overall view of the general public is that we are in one regardless. A number of people I know do not feel secure in their jobs and are trying to not only survive but save as much as they can in case they find themselves looking for employment.
Then when you hear Obama say that we are not in a recession and that there is no danger of entering another, you can’t help but wonder in what world of reality is he living in? Maybe he has it made financially, but most of the rest of us don’t.
I wonder what would happen if Presidents and other politicians didn’t get their government retirement packages once they are voted out of office and have to work for a living in the real world like the rest of us?