True Progress Is Not Always Fast

Karey Harrigan

Columnist

According to the Bureau of Economic Research the nation’s recession has been over since June 2009, yet Americans are still facing the effects of the economic collapse. With increased tuition rates, aspiring students are forced to stay home and work full-time jobs rather than continuing their education. As unemployment has reached a new high, parents are constantly struggling to make ends meet. Families are continuing to move after their homes have been foreclosed and many people that once had good credit are left filing for bankruptcy. The influence of the dire state of our economy is continuing to be felt throughout America. Since the end of the recession was officially declared over a year ago, people are frustrated and want relief.

Most Americans seem to believe once a recession ends, we are expected to be able to build our foundation back up and return quickly to a stable financial system. A fast resolution does not necessarily point toward a problem solved. The Bureau of Economic Research defines an end of a recession by the gross domestic product growing for two consecutive quarters. Although the NBER may have observed progress within those 3 month quarters, Americans have not seen their struggles improve.

In September, the consumer-confidence index measured by Conference Board, a private research group, revealed Americans assurance in the economy reached a low of 48.5%. This is the lowest percent since February and drop of 4.7% from August.

The plunge in confidence is parallel to the impatience people are feeling. Robert Trumble, Professor of Management and Director of the Virginia Labor Studies Center at VCU, explains that “urgency trumps importance” for the public. This accounts for the reason that the nation has lost its faith in the government and the policies that have been chosen. Because the results are not immediate, people believe there is simply no improvement.

The areas where funds are cut and money begins to be spent are based on the understanding of importance over immediacy. Although we are experiencing the same difficulties that we had during the recession, the slow but consistent growth is meant for long term advancement. Professor Trumble emphasizes “the bad times are not over; but we are not deeper in the hole. As we are crawling out of it we may from time to time slide back, it’s a long process.”

I don’t feel that it’s realistic to leave it solely up to the government to take us entirely out of an economic collapse. Many of the issues that our society is facing in the economy seem to correlate and react like a domino effect. For instance, it is apparent consumers will not have the confidence to spend until they have the funds and businesses won’t begin to hire until they see people spending again. This is a perfect example of cause and effect that will ultimately lead to a lose-lose situation. Getting back to a healthy economic system is collaboration between what policies the government chooses and the country’s trust in the economy.

It’s important for Americans to understand that even if we regress at times or become stagnant it is only the nature of true progress.