Why Is The Economy So Bad?

Many people around the world might think that the US economy is in good shape, even people living in the same country. But the truth is that our economy is bad. There are several different reasons as to why our economy seems to be declining, and many of those aspects come from the war we are now having with Iraq. Not only that, there have been many job losts, the price of the oil price keeps on increasing, more money is being used to supply the troops, etc.

The unemployment rate surged to 5.5 percent in May from 5 percent- the sharpest monthly spike in 22 years- as the economy lost 49,000 jobs, registering a fifth consecutive month of decline, the Labor Department reported Friday. With people losing their jobs and owning a house at the same time, becomes harder for them to pay their mortgage and pay their bills. Owning a car is also another problem with the prices of gasoline rising.

The war in Iraq has caused economic problems too, especially now that it has been extended. With this extension, it has cost the government more to keep the troops there, by having to supply them with equipment necessary for them to protect themselves from what they have to face everyday while being there. So as we contribute with money to the country, at the same time is being used to repair the country. Everything done in the US, is connected in some way and affects us the people.