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Five Reasons to Be Worried

So this is recovery? Oh, you’re not so sure anymore. If not a double dip, we certainly should be worried about an extended long-term slog that might as well be a chronic recession even if economist numbers show some measure of growth. Here are five reasons to be very concerned:

By Jonathan D. Miller | Updated on August 22, 2011

So this is recovery? Oh, you’re not so sure anymore. If not a double dip, we certainly should be worried about an extended long-term slog that might as well be a chronic recession even if economist numbers show some measure of growth. Here are five reasons to be very concerned:

The U.S. Government Has No Plan: Our flummoxed leaders grope for solutions without any direction. Scorned stimulus spending probably ignited what nascent upswing took place last year into early 2011, but that funding has run out as a result of political impasse. The current austerity government-cost cutting mode results in more jobs losses in the public sector, keeping unemployment high and consumer confidence plummeting. Big corporations make plenty of money by shifting operations overseas to lower cost countries and keeping U.S. workforces lean. Most new jobs pay less than old ones without the same level of benefits. The Federal Reserve’s only weapon is to keep interest rates at abnormally low levels—investors either can’t make any money in low risk investments or must take inordinate risks to make not very much in plays like now over-priced real estate. Under these uncertain circumstances many investors retreat into cash.

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