5/28/2017

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These Are Tough Times For All Of Us

As we all know, these are not the best of times for people who have either lost, or are about to lose, their jobs, their homes, their life savings and above all, their dignity. All total, American households have lost trillions of dollars in net worth over the past few years, and added to that, it is estimated that by 2010, one out of every 10 people will be out of work.

These are staggering numbers. The unemployment rate has already hit a 25-year high and before the recession bottoms out, the way things look, the unemployment rate will more than likely go much higher. Those who are laid off and cannot find a job or are one step away from getting a pink slip, don't feel very good about how things are going right now, and rightly so.

Although some people are feeling the pain more than others, these are tough times for all of us. Many people have lost their life savings and they don't know what to do. This has become a big problem for some who were about to retire. They can't. They have to continue working and although they still have a job, they are worried about their future.

All in all, times are tough. This is undeniable. All you have to do is take a look around and you will see the affects of the bad economy. There are more homeless people, more people applying for public assistance, more and more foreclosures and bankruptcies, and when times get this tough, there is more crime.

If you drive down major boulevards in many towns and cities, you see vacant buildings and "for lease" signs springing up like they haven't been seen in many years. Businesses either cannot renew their leases when they are up or they have defaulted on them altogether, leaving commercial property owners, who have mortgages to pay, desperate to attract new tenants. This is another phase of the recession that should not be overlooked because, in economic terms, everything is related.

Small businesses are the backbone of the economy. Just as when big businesses fail, the economic impact on small businesses are the same, just in a smaller, but more personal sense. The widespread economic impact of small business failures is more devastating to the economy because there are many more small businesses than there are larger ones. When small businesses are forced to close their doors, they have to lay off their employees, too, and the numbers are huge.

As we all know, many car dealerships all around the country are being forced to close. If a once thriving car dealerships goes out of business, those employees who work there have to find new jobs. But it doesn't end there. It causes a ripple affect that hurt other related businesses such as distributors, suppliers, and parts manufacturers. They may have to let employees go, too, or they may be forced to go out of business. And then there's more. It also created a negative impact on small businesses that operate in the immediate vicinity.

  • Small businesses depend on larger businesses to survive and vice versa. Employees and customers of large businesses frequent nearby small businesses such as restaurants, dry cleaners, gas stations, coffee and doughnut houses, and other service providers during the course of a business day.
  • Although most companies use layoffs as a last resort, in order to stay operational, they may have to let some employees go.

It is very hard to tell someone who is out of work to wait for things to get better. They are trying to live for today, not tomorrow. And those people who have lost their homes, their life savings, and their dignity cannot be consoled.

People are frustrated, angry, depressed, and the only way to make things better is to get the economy moving again and to create jobs. But this is easier said than done because there is no quick fix. It's going to take a large investment of money by the government, businesses have to restructure (downsizing and more possible layoffs), and it's going to require time and patience from everyone. The million dollar question is how much time?

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