by Colin Lovett, PICurrent Managing Producer
Courtesy of Daquella Manera
Panic is usually a word we use when we talk about gunshots or fires. Not accounting. But the U.S. economy is in full panic mode right now, casting another 240,000 jobs overboard in October. The unemployment rate is now 6.5%, the highest it’s been in 14-years. More than 1.2 million jobs have been lost since January.
So what’s going on here? In one word: fear.
People sometimes say something is an art and a science. The economy is certainly part science, with math models of growth and vast pages of numbers. But really, the economy is mostly art. When people believe things are going well, they do. When they think things are in a nosedive, it usually becomes worse.
Right now most Americans think the economy is heading in the wrong direction. The struggling economy was at the top of voter concerns when they went to the polls Tuesday and elected Obama as president.
So what about the bailout? The bailout, stimulus checks and other efforts to help are only partly about finance. The real power comes only if the government can give people and businesses confidence the moves will work. We can debate the details of the bailout package and stimulus plan, but it comes down to feelings. If consumers and businesses think they will work, they will probably start hiring and spending. This is what will ultimately pull the economy back up.
But if people are not convinced, then the best plans will fail because people will continue to panic.
Here are five steps you can take to help youself:
- Don’t Panic. As the traders on Wall Street and around the world have shown, panic will lead to bad outcomes.
- Save Money. As my friend Lee said in his post last week, cash on hand can help your family survive tough times, including layoffs and unexpected medical bills.
- Cut Spending. This can help you save money and reduce your debt. Taking public transportation is one way to avoid rising gas prices. You can also look for ways to save on your food budget.
- Know What Services are Available to You. You might be surprised. More people now qualify for food stamps. There are also programs to help people get health care.
- Get Training to Prepare for a Better Jobs. If you have a job and are worried about layoffs, now is the time to get training. With recent job losses across the country, more skills can mean the difference between unemployment and getting a job that will pay you a decent living.
Our sister site, The Beehive, has great resources for helping you get back on track if you’ve lost or might loose your job.
To find out more about the unemployment numbers, please visit:
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