I keep hearing that the economy is getting better, but at the same time I am seeing more and more people living in poverty. If the economic situation is getting so much better, then why are so many families having financial problems? I had an opportunity to ask this question on my social media page, and I received a lot of responses. Some who responded said that the economy is getting better despite the number of people currently living in poverty. They say that the increase in new business launches confirms that personal financial situations are getting better for many individuals.
However, I see all this all totally different.
In my opinion we are seeing more new businesses being launched because so many people today cannot find jobs. Some had previously been looking for a job for over two years, and out of frustration they decided to launch a business. I am by no means trying to be pessimistic, but I am trying to be realistic. I hardly think that an increase in new business launches automatically means that the economy is getting better.
A few other people responded that they felt that the economy was getting better because home prices were rising. Maybe I am not economically savvy enough, but I don’t equate higher home prices to a better economy either. I say this because I truly believe that the latest economic numbers and real estate data has been manipulated. I believe this was done in order to give average citizens the impression that things are getting better. But in reality this is nothing more then a smoke and mirrors game.
On the other hand I had a large number of responses that were in agreement with my opinion. These people also feel that the economy is not getting better, and some even believe that it is actually worse then it was a few years ago. They base this on several things which includes the number of people they know personally who are still unemployed and on the large number of vacant and foreclosed homes in their neighborhoods.
Another thing that makes me skeptical about these recent economic reports, is that they don’t include the large percentage of people who are not being counted in the unemployment numbers. These are the people who have exhausted their unemployment benefits. Because of this they are not included in the unemployment statistical reports. Although there is really no way to track these people, it is estimated are that they are currently about two million people who have exhausted their benefits and have basically fallen out of the system. If these people were included, the economic reports would look a whole lot different.