And as a bonus question, how have we fallen into the same problem we did just 14 years ago, how did no one think “let’s do it differently this time guys!”
In: 6
Ok, first off there are few if any parallels between the Economy today and in 2008 so that’s a flawed question. As for the economic problems of today there are three problems. First, US inflation went high due to excessive government spending and supply chain issues. In order ro curb inflation the Fed is rapidly increasing interest rates to slow the Economy. This doesn’t just hurt the US either as so much global commerce and debt is denominated in dollars so the Fed raising rates also tanks economies across the globe. Secondly, Russia invaded Ukraine resulting in NATO imposing sanctions on Russia. These sanctions have caused energy prices to rise which is also bad for the economy. Third, China has been VERY aggressive at fighting COVID including shutting down whole cities. Since China produces so many goods these shutdowns have caused ripples across global supply chains.
PS: Take the media’s fear mongering with a big heap of salt. Unemployment is at the lowest point in most of our lives. The Economy isn’t really doing that bad.. although there are storm clouds on the horizon. Also remember the stock market is NOT the Economy.
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