Ways to Save Money in Harsh Economic Times

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Recommended: Essay on America in recession

America has suffered through recessions time and time again and was able to overcome these economic obstacles in the past. Recently America has faced a recession in which new ideas have not been implemented. Obama as president has been spending money as a means to fix the huge deficit that was handed to him when he took office. Inflation is on the rise and this cannot be blamed on the Obama Administration. This inflation would result in an increase on the price of commodities. This recession should not be as bad as the recession of the 1920’s knows a, The Great Depression. Many problems are occurring because of the recession, unemployment rates are at their highest, inflation is on the rise, and the deficit needs to be reduced by fix international trade and finance within our government and industries. Due to the various economic turmoil’s of the past and present, the American government and its people need to implement new ways in which they can preserve money in these harsh economic times. America needs to stop being frivolous with its money because spending is not going to help it get out this huge deficit that it has put itself in.

The first thing America needs to do is use the impending inflation to its advantage. Usually inflation would be viewed as a bad thing but, this inflation will “raise the prices of a great many commodities, goods and services, among which would be the price of housing” (Mulligan 3). This would be a good thing because it would help mortgages rise which in turn would result in the reduction of foreclosures. Foreclosures are the first sign of economic decline so, a decrease in the amount of foreclosure would demonstrate that a restoration is occurring within the economic turmoil. If inflation were to ...

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...hough a recession without a job. The inflation could be sued to help alleviate problems created by the recession, as stated before inflation can help keep houses from being foreclosed. In addition, new principles of economic co-operation will have to be devised to not only minimize consumption but also provide us with methods by which we may prevent or penalize any waste or extravagance. Finally, the new economists will have to develop static rather than dynamic economic models, that is, models for our economy which provide us with ways to limit an increase in our levels of consumption, matched by productive processes which increase rather than diminish the total resources available to us. In a recession banks are less willing to lend. This is particularly a problem at the moment, because of the concurrent credit crises which is reducing the availability of loans.

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