There have been a lot of dire economic issues hammering the state of Michigan during the past 7-8 years. IN September 2009, Michigan had the highest unemployment rate in the country at 15.3% (North and South Dakota were the lowest at 4.3%).1 However, this 15.3% is still not the state's highest rate on record which occurred in November 1982 in which it peaked at 16.9%. 2 This recession of 1978-1982 was caused by inflation, high interest rates, high fuel prices, and hit the Big 3 companies hard. The only state hit harder with unemployment in this time period was West Virginia with 18.3% in March 1983.
According to the Consumer Price Index, from the summer of 2008 to the summer of 2009, prices have gone up about 1.7% on all goods sampled. Overall, the cost of food at home went up 3%, fruits and veggies went up 6.6% and meat and poultry went up 3.3%. Fuel and heating oil increased by 6%, and even clothes for the whole family shot up between 8 - 20%.
While many Americans are losing their jobs and the prices are continuing to rise, disposable incomes ( the money leftover to spend after the bill are paid, food is bought, and money is put in savings) begin to shrink, it starts a cyclical process. People buy less, and that affects companies who may have to lay off workers.
Please share you or your family's stories with us in this tough Michigan recession. How has the economy affected your family? Do you buy less? Do your parents and family give fewer gifts at holidays? Do they make you pay for things more often instead of just giving you what you want? Have you gotten a job to help out?
Due Thursday, November 12th. 200 word minimum.
Sources:
1. Unemployment stats: http://www.bls.gov/web/laumstrk.htm
2. Highs and lows http://www.bls.gov/web/lauhsthl.htm
3. CPI Report 2009 - http://www.bls.gov/news.release/pdf/cpi.pdf
Showing posts with label recession. Show all posts
Showing posts with label recession. Show all posts
Wednesday, November 11, 2009
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