Welcome to Economics 101

In February of 2009 the economy began to tank, and today, many are worried about the economic disaster and have started to panic as unemployment rates rise. Many are still asking themselves, “Has the economy truly recovered, or will it ever?”

During a press conference on August 24, Vice President Joe Biden spoke about the state of the nation’s economy.

“We are turning this great ship of state around, that was wandering out to sea and it’s heading back to port,” said Biden.” Now, look now, it’s not happening as fast as any of us would like, and certainly not fast enough for the millions of folks who are still out of work. But there isn’t any doubt we’re moving in the right direction.”

Many republicans disagree with Biden’s statement. During the Glenn Beck show, Tea Party member Beck spoke about the Hindenburg Omen, a technical indicator that based on several economic factors that helps foreshadow stock market crashes. When the Omen is triggered, a market crash happens 77 percent of the time.

“Well we told you that it [the Omen] was triggered two weeks ago,” said Beck. “Unfortunately, it was just triggered, again, last Friday. And almost triggered a third time last Thursday.

So, lets recap, Mr. Vice President. When the Hindenburg Omen is in play, this is what usually happens . . . This isn’t good. Not the right direction.”

Beck is not the only one who thinks it will be a long while before the economy recovers; some financial experts agree.

“If I project from the last low in February ’09, I get down to 5,000 with the next Dow move,”  said Charles Nenner financial expert. “My cycles show some pressure now that we could see for a couple of months, but then, it should go lower for the next three or four years again.”

The Dow (Dow Jones Industrial Average) is the average stock of 30 large companies such as AT&T, Coca-Cola, and Wal-Mart. Currently, the Dow is averaged at $10,500. During the economic crisis the Dow dropped to $6,600. So, if cycles that show that the next low is 5,000, and they are correct, America may be in for another economic disaster that will be even worse than the one of February 2009.

According to the Drudge Report, one in six Americans are still receiving government aid, and Tennessee has a 9.8% unemployment rating.

Is this “great ship of state” sinking?

During a speech on August 39th, President Obama spoke about the nations most urgent task.

“Our most urgent task is to restore our economy, and put the millions of Americans who have lost their jobs back to work,” said President Obama during an oval office speech August 31st. “To strengthen our middle class, we must give all our children the education they deserve, and all our workers the skills that they need to compete in a global economy.

“We must jump-start industries that create jobs, and end our dependence on foreign oil. We must unleash the innovation that allows new products to roll off our assembly lines, and nurture the ideas that spring from our entrepreneurs. This will be difficult. But in the days to come, it must be our central mission as a people, and my central responsibility as president.”

The economy has affected the majority of the American people. People have gone into debt, filed bankruptcy, and lost jobs.

“It’s [the economy that] made my dad['s company] go bankrupt already, but he’s got some work now,” said sophomore Dillon Stojanovic. “He fixes houses . . . He’s actually got a lot [of work] since since the economy has gotten better; he’s gotten hired by a bunch of real estate people . . .”

Is America heading the right direction?

Only time will tell.

Is recession really on downturn?

The recession in America may have hit its workers hard, but experts believe that the recession may be drawing to a close. The public does not agree.

What caused the recession in the first place? Where did America go wrong?

The National Bureau of Economic Research said that “the deterioration of the labor market throughout 2008 was one reason why NBER decided to state the recession began” in 2007. How many jobs did businesses cut? From January 2008 to October 2008, employers got rid of 1.2 million positions, and the number has only increased since then.

As a result, America is beginning to feel the pinch now more than ever. According to the Cable News Network, the unemployment rate has risen to 9.3 percent, affecting teens as well as adults. Teens may even possibly have it worse, seeing as they are entry-level workers.

“I worked at a daycare for about two and a half years,” senior Meghan Hawkins said. “I actually got laid off my first year into it, but they brought me back in as a substitute. I would say about five other people got laid off, and they were the same age as me.”

Teen unemployment is not the only problem. Workers with families to support have had to make recent sacrifices, as well, such as switching from private schools to public schools. In fact, five or six former private school students now attend Bartlett High.

“That’s not very many when you consider 1450 students, but any family that something like that happens to is significant,” vice principal Jane Gatewood said. “Every [public] school has had some [private] students enrolled as a result of the economy.”

Students have also had to cut back on some of their excess spending.

“You don’t have nearly as many students driving by themselves to school,” Gatewood said. “Another thing they gave up is buying tickets and T-shirts.”

This puts the sports teams and Pep Crew at a disadvantage. They all rely heavily on income generated by ticket revenue and the money generated from selling spirit wear.

Students and school organizations alike are suffering from the state of the economy. Whether this recession will truly end soon remains to be seen. However, hope remains high that at least some form of relief is on the way.