Heading Towards Another Great Depression

american economy, budgeting, gas prices, great depression, inflation, money, Saving, trouble with economy

There are various ways you can curtail your expenses so you can apply more money towards your basic necessities in life. It just takes a little bit of research and putting these changes into effect.

By Citizen Correspondent Michelle Kenneth

Date Posted: 05/07/08

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The state of the world's economy is quickly approaching what economists fear to call a "recession." But the way it stands right now is that this is not a short term slump. The state of the world's economy is looking quite similar to the Great Depression of the 20th Century.

Growing up in America at the end of the 20th Century, I had always heard stories about what it was like to live during the Great Depression. Most of our grandparents lived in the Great Depression era and had numerous stories to tell about what it meant to struggle to survive. They understood the importance of saving every penny and making a little bit go a long way. They were not overconsumers nor did they take on massive debts to buy frivolous things like their children (the baby boomers) did.

The Great Depression did not just speak of the state of the world's economy, it also spoke of the emotion of the people at that time.

A simple Google search on the term "Great Depression" brought me to an in-depth article from Wikipedia describing the atmosphere of what started the Great Depression. I'm sorry to say that if you compare that article to today's newspaper, you'll see the similarities of our economy.

Suze Orman recently said in her column that the reason why our economy is in the state it is in is due to overconsumption and suppliers rushing to fill our demands. With the shift in pricing in our economy, we are beginning to face an underconsumption in our economy.