The Paw Print
How bad is it?: How did it start?Tuesday, November 11, 2008 By Ruth Rodriguez
As we all know the U.S. economy is in crisis right now. And it’s not only the United States that’s passing through this rough time; Europe, one of the more prosperous continents, is also experiencing a similar crisis. The whole country is affected by this, especially the middle class. It has been said that the U.S. may experience another substantial depression; possibly bigger than the Great Depression. If the depression actually occurs we could be stuck in it for twelve years. “I find myself negatively affected by it, because as a student I don’t earn enough money to pay for my necessities since everything is so expensive,” said senior Daniel Rua. Senior Manuel Fuentes said he’s having a rough time with the economy, “I don’t go out as much as I did before, because of the gas prices.” This economic crisis occurred back in 2002 through 2007, when banks were lending money to people that couldn’t afford to pay. As we got to 2008, banks were bought out like Wachovia and Wamu . “Unless they reform lending policies, the situation is just going to get worse,” said economics teacher Coach Romer. Since fewer houses are being sold, there are less taxes and as a result of that, there’s less money for public education. Banks don’t have money to let people borrow, so there won’t be money for student loans. John McCain’s plan was to reduce taxes from businesses and Barrack Obama’s plan is to tax more businesses than the middle class. Coach Romer said that McCain’s plan was better than Obama’s, because Obama’s plan will cause less jobs in the U.S., since businesses are charged more for taxes less people will like to open a business. Instead McCain’s plan could of helped the U.S. economy to improve since more businesses will open and more jobs will be offered. We’ll have to see how the economic situation ends up, and the solution might be in our new president and maybe ourselves too.