Experts (and Debtors) Believe the Economic Recovery Never Happened Skip to main content

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Experts (and Debtors) Believe the Economic Recovery Never Happened

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Are you buying forecasts that we’re in a slow-but-steady economic recovery?

Well some believe the economic recovery never actually happened.

Just ask Nobel Prize winning economist and New York Times columnist Paul Krugman. On the heels of the recent debt ceiling crisis, 600-point plunge in the Dow Jones industrial average and the drop in interest rates to near-record lows, Krugman warns that the United States economy was never truly 'on the road to recovery.’

As Krugman writes in this week’s New York Times, “It’s not just that the threat of a double-dip recession has become very real. It’s now impossible to deny the obvious, which is that we are not now and have never been on the road to recovery. For two years, officials at the Federal Reserve, international organizations and, sad to say, within the Obama administration have insisted that the economy was on the mend. Every setback was attributed to temporary factors — It’s the Greeks! It’s the tsunami! — that would soon fade away. And the focus of policy turned from jobs and growth to the supposedly urgent issue of deficit reduction.  But the economy wasn’t on the mend. Yes, officially the recession ended two years ago, and the economy did indeed pull out of a terrifying tailspin. But at no point has growth looked remotely adequate given the depth of the initial plunge. In particular, when employment falls as much as it did from 2007 to 2009, you need a lot of job growth to make up the lost ground. And that just hasn’t happened. “

Krugman’s right about that. Despite early economic infusions from federal stimulus packages, the American economy has been unable to add more than about 70,000 jobs a month on average. Economists say we need at least double that to keep up with all the people who enter the workforce just in the normal course of events. Instead, the U.S. still has an average unemployment over 9% and the average jobless worker remains unemployed at least nine months before finding work. Add to that fears of job insecurity and income compression via underemployment, and American incomes don’t come anywhere close to pre-recessionary levels.

As Krugman points out, these employment realities don’t exactly have people running out to buy things to spur a flagging American economic outlook:

“And why should we be surprised at this catastrophe? Where was growth supposed to come from? Consumers, still burdened by the debt that they ran up during the housing bubble, aren’t ready to spend. Businesses see no reason to expand given the lack of consumer demand. And thanks to that deficit obsession, government, which could and should be supporting the economy in its time of need, has been pulling back,” said Krugman.

So, if you are already struggling financially and fear the further economic impacts of a third depression or double-dip recession, now is the time to take on your financial woes and take back your fiscal freedoms by making a fresh start through bankruptcy. Discharging personal debt through bankruptcy now is, in some cases, the only solution for so many jobless Americans—especially unemployed workers facing years without steady income, and, now, exhaustion of government unemployment benefits—to keep their personal lives financially afloat and creditors at bay.

In short, what policy makers can’t do for you, you can do for yourself.

Knowing a qualified bankruptcy attorney is the first best step to help you regain your power, conquer creditors and face your financial fears— for a more secure fiscal future.  The bankruptcy attorneys at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-888-234-4181, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.

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