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Personal Finance: Economic report part 2

I think the biggest thing Imma talk about in this economic report is the COVID-19 Corona virus outbreak. Another thing I’ll talk about is the things that could cause an economic crisis.

First things first I will go ahead and list the following things that cause an economic crisis:

1.) Extreme Weather Could Cause Economic Crisis

2.) The costs of our Health Care

3.) The Federal Debt Will Increase

4.) Oil and Gas Prices Will Rebound

So, basically The U.S. Economy might Boom, Then Bust. That might sound funny and not alarming at first, but I think this is something worth considering about. I have heard that many people are saying, “Trump is failing at leading” these people kept saying that Trump doesn’t stop having people take tests on people of the corona virus. The Health Care costs have increased. People losing jobs one by one.

Since the outbreak of the corona virus, a lot of people panicked about it. Some people remained calm ’bout it. I would rather remain calm about this, but not be careless about it. I would stay home as much as possible and not remain at home forever though. So far since this corona virus outbreak came out, I had been staying at home this whole time, but not all the time because we often went outside to take walks or go to the park. We had friends come over to our house even and our parents were cool with that. I don’t know if that’s careless of us, but my point is that you shouldn’t shut out yourself from the world and stay in that hole of yours and never come out.

According to investment and financial educators Mike Maloney and Peter Schiff, a huge financial crisis is in the making. Through pinpointing similarities in trends from the 2008 financial crisis and information today (2015), they have built quite a strong case for the instability of the United States’ economy. People not buying new goods is causing the value of those goods (as a whole) to drop.  A current drop in value, much like the drop appearing during the 2008 financial crisis is clearly visible. 

As inflation rises, your dollar is able to purchase a smaller and smaller amount of any given good. Already in 2015 the United States’ inflation rates have outdone those of 2008. It is obvious here, that with all the changing standards of calculation, as well as interest rates and inflation, records do not necessarily accurately reflect the economy. The unemployment rate in the US today is rather low; 2018 ended at 3.9% unemployment rate. It’s jumped up slightly in the New Year, but is still lower than what is considered a good average. It’s hard to pick a perfect number, and these “healthy averages” range from 5% to 6.7%, depending on your source.

The unemployment rate is higher in January of 2019 partially because of the Government Shutdown, which occurred from December 22nd of 2018 to January 25th of 2019, making this the longest shutdown in US history.The unemployment rate is not expected to make any drastic leaps in the coming years, which means this ideal percentage I mentioned earlier will not be reached anytime soon.

This report has honestly confused me a lot more than it has clarified things for me. I understand the snags in our economy as of now, and I understand who is to blame. I do not understand however, how it is that the majority of Americans are blind to these issues.

THANKS for reading this essay I hope you enjoyed reading my thoughts on this topic about our current economy. I’ll post more soon and have a great day!

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