To many, the American economy seems to be on the road to recovery. The stock market is up more than 50% since just March, the national Gross Domestic Product increase during the third quarter for the first time since the recession began, and there is a general sense of optimism making its way back into the mindset of many Americans. In spite of things not being quite as bad as they seemed six months ago, there are still several signs of weakness that are going to be make recovery an uphill battle.
- Unemployment: This has become the 800 pound gorilla among economic problems and October’s jobs report highlighted the unemployment problems even more. Economists had expected unemployment to increase to 9.9% after the monthly report, but the results were worse than expected and unemployment jumped to 10.2% during the month. The last time the US faced double-digit unemployment was in 1983. Jobs continue to disappear each month and we could be well into 2010 before job creation begins again. Compared to other developed economies, the US ranks right in the middle of the pack for unemployment.
- Poverty: The US is not generally thought of as a country with big poverty problems, but in a recent survey only two nations with developed economies, Turkey and Mexico, ranked worse in poverty statistics. More people are suffering the effects of poverty than in decades after the recession we’re just emerging from.
- Education: American students have tested worse than nation’s like Japan in many school subjects for years, but the divide between the education level of students in the US and those in other developed nations is getting wider. Americans scored especially low in math and science and families struggling to survive are likely to put less emphasis on education than usual.
- Health: Healthcare in the US is a controversial topic right now and regardless of the outcome of the health care debate, the US has a long way to go to be considered a healthy nation compared to other developed nations. Of 30 nation’s recently studied, the US scored 27th in overall health. Obesity is a major concern, especially for younger generations. An unhealthy population makes it difficult to compete economically with other nations that have better health habits.
- Happiness: Think about it–how many people do you know that are actually happier than they were a couple of years ago? This recession has taken its toll on almost everyone and even though there are signs of recovery, people are still struggling mightily. Among the 30 nations surveyed, the US ranked #11 in life satisfaction. In other words, it could still be worse, but the US was also one of only 4 nations where life satisfaction is getting worse instead of better.
It is likely that the recession will be declared over sometime during the next few months but the pain caused by a sluggish economy will extend into 2010 and possibly beyond. In time, the economy will provide a rising tide for everyone to enjoy again, but the reality is that it could get worse before it gets better.
