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Job Stability It wasn't long ago that U.S. boasted the lowest unemployment rate it had seen in a number of years. It feels quite sudden to some people that now millions of people are not only being laid off, but are sitting at home on government assistance because there aren't available jobs in many areas to replace the ones they lost. This is putting stress on the local governments who have to find resources to put all of these extra people on food stamps and unemployment until they are either called back to work or find another source of employment. Very few people in the U.S. can say they don't know at least one family who has lost a job and is barely hanging onto their home, car payments, and food expenses. Savings As a result of the massive layoffs, Americans are consumed with fear that their company will be next. The result is more money being packed into savings accounts and a lot less dollars floating into business for goods and services. The credit crunch has changed the spending habits of everyday Americans to the point many stores are putting out big sales well ahead of the coming holiday season, expecting that people will not be spending as much on Christmas as in years before. It is expected that the next industry to require a bailout may very well be the retail industry. People simply do not have the money to spend for the most part, and those that do have anything extra are scared to let it go with the number of businesses struggling or all out failing. Lost Confidence When all is said and done, the credit crunch has taken the confidence in the economy away. People do not feel safe letting go of their money unless it is absolutely necessary because they do not know what is going to happen next with the credit crunch or with their own jobs. Watching others lose their homes, vehicles, and even their retirement savings as banks nearly collapse is enough for even the loosest of spenders to tighten up the purse strings. Essentially, this credit crunch is changing the typical American lifestyle and the lifestyle of many, many others around the world. Years before everyone was taking the easy money passed out by banks in the form of subprime lending and claiming to find the American dream with their first house purchase. Today, many of those same people have lost those homes and are struggling just to put food on the table. |
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