What could happen (Implications post)

The economy is in bad shape and even Obama has admitted that fixing it should be a top priority. I recently read a great article as to what will happen if we don’t fix our economy as soon as possible. The primary belief is that unemployment will remain very high. The problem of the bad economy can be solved, but the decisions that must be made in order to solve these problems are difficult ones.  Many economists don’t fear of another deep recession like the one that we are currently battling out of, but many think that the unemployment rate will remain high until the economy bounces back. These economists are cutting their estimates for growth in GDP. Slower growth means unemployment could remain in the high single digits (or possibly in the double-digits) for years to come and if you are without a job, it makes it very hard to spend money or even pay your bills.

I think that if we do nothing to work this problem out, that a few different things might happen. Firstly, I believe that if this goes unsolved, there could be mass amounts of protest, objection, and unrest towards the American government – something we cannot afford. The unemployment rate is high, and will remain high for a while; maybe until 2014. This alone is reason enough to work even harder to get this fixed. Secondly, despite what some economists might say, the economy might plunge into a “double-dip” recession. Although it is not a certainty, there is still a possibility that such an occurrence might happen. This would be incredibly destructive for the American Government. Unrest would rise, and we might even lose our place as the beacon in the world for hope and prosperity. Even worse, our country may end up bankrupt in as few as twenty years if our economy can’t be turned around. Although highly unlikely, it is still a vague possibility. Budget deficits would eventually become too great for us to pay off and in worse case scenario, most American citizens would not even be able to pay the interest on the American debts unemployment would remain high. In essence, it could be the end of the “American Dream”.