Introduction
Some economic reports claim that the overall GDP growth rate has increased over the past few years, but my personal situation is much worse than it was at the time. Financial pressures are much higher now than they were in 2008. Additionally, prospects for improvement of the standard of living seem grimmer now than they were four years go.
The situation
An analyst known as Blodget (2) carried out an analysis of the economic situation in the country and found that, unlike 2008 where the economic growth rate was negative, the past three years have witnessed a drastic increase in gross domestic product. This rate has even been compared to the Bush era. Unemployment rates are at an all time low, so they are much lower than they were four years ago.
Nonetheless, the analyst still maintains that the rate of increase has diminished even though it is still higher now than it was then. Blodget (8) also explains that the number of jobs in the country is increasing with time; he places greater emphasis on the positive growth rates in the private sector. He asserts that jobs are increasing at a rate of 100,000 jobs per month this year (2012), yet the country lost three quarters of a million jobs per month in 2008.
Once again, he compares these growth rates to the ones that existed during the Bush era. The report shows that government expenditure has increased; although this has not increased at a rate that was as fast as Bush’s spending rates. Lastly, the analyst admits that the budget deficit is out of control now than it was four years ago (Friedman 9). He warns that if the government does not address it, then the country could enter into a crisis.
Although the above mentioned statistics make it appear as though the standard of living is much better now than it was in 2008, the reality of my experience and many other people sharply contradicts these findings. Four years ago, it was possible to indulge in a few luxuries such as foreign trips.
However, this is no longer possible today. The cost of ordinary items such as gas and household items has increased dramatically. It is now necessary to squeeze one’s budget in order to afford these basic necessities. The situation was not as severe as it was four years. These high expenses are indicative of the high rate of inflation in 2012. Four years ago, it seemed like a distant idea, but it appears to apply to more people now than it did then (“Public sector pensions” par 6).
Health insurance is yet another problem that appears to have worsened now than in 2008. At the time, one’s employer was responsible for these payments. However, this is no longer true for me today. It is now necessary to cut down on daily expenses in order to reduce one’s health costs. Only the most serious conditions warrant attention now. Furthermore, insurance premiums have almost doubled over the past four years so it is difficult to maintain that 2012 is much better than 2008 (Darling 14).
The job situation is not any better because downsizing has been going on in various sectors of the economy. Consequently, people who are still at work have little confidence in the economy because they are not secure about their jobs. Several executives are cutting down on their workforce in an effort to minimize operating expenditure. Several firms are outsourcing their manufacturing and production needs to cheaper economies such as China and India.
Employers dismiss American workers as overqualified and too expensive to maintain. The field of manufacturing is particularly notorious for this practice. Consequently, those workers who are still in employment worry about their future in their organizations. This lack of confidence in the system has hampered my productivity and many others like me. Those who are still in employment have undergone salary cuts that make their living expenses even more difficult to handle.
It is becoming more difficult to make savings as am currently using my earnings to handle basic expenses such as food and transport. Four years ago, it was possible to make savings and use them for investments. However, currently, people use most of their savings for regular household needs and medical expenses not covered under insurance. Possibilities of securing one’s future are quite slim in 2012.
However, these grim realities are mostly true for middle class people like me. Top earners are only getting more in terms of their investments as their corporate profits are increasing as well as their overall return on investment. In fact, it is this category of people who mostly benefit from the unfavorable conditions faced by ordinary workers. Issues of inequality are rife in the country as majority of the country keeps suffering while the select few are enjoying immense profits (Jackson 16).
Conclusion
Some economic figures may paint an optimistic picture of the present, but personal experience illustrates that this is far from the truth. The cost of household goods has increased; health insurance has become inadequate. Further, confidence in the country’s employment sector has reduced. It is now more difficult to save, and cases of inequality are also rife. Consequently, 2012 is much worse than 2008.
Works Cited
Blodget, Henry. Are we better off than 4 years ago? Lets go to the charts. 2012. Web.
Darling, Bryan. “The truth about President Obama’s skyrocketing spending.” Heritage Foundation, 2012: 14. Print.
Friedman, Emily. Romney warns of Obama’s debt spending inferno. 2012. Web.
Jackson, Brooks. Obama’s spending ‘inferno’ or not? 2012. Web.
Public sector pensions: burning fast. 2012. Web.