Federal Reserve Chairman Ben S. Bernanke said last Tuesday that the recession is "very likely over," offering his most explicit endorsement so far of the view, increasingly widespread among economists, that a recovery is underway.
Even as he warned that the expansion could prove deary (in statistic, we called these WEAK DATA), new data released on Tuesday provided evidence that the economy was turning around, showing that Americans returned to stores in August and increased their spending at the highest rate in three years.
Certainly peoples will turn out to the stores for basic necessity likes food, health care products, cloth and anything necessary. Its said that "retail sales rose a solid 0.7 percent" and for what? the entire america! that's not the indication that the recession is over or near to over!
You don't have to have an economic degree to calculate those. Lets compare the real data in august'08, it 0.5 percent and in august'07 it was 10.5% and the year before that is >25% spending on retail sales for the entire america.
I'm very much doubt on the fact on spending patents throughout america! its all seems mystery to me. The fact is i've been doing a research in primary area in New York. Located in the Harlem and Bronx! these 2 area are massive with people, unsecured home and under development. What i can tell more on these 2 areas is in my reports which presented in MIT during Country Economics Colloquium between Academician and White House Representative Officer in-charge.
My bloody speech begin with,(you know why! i am the one started all these in Babson: read previous post)
"The poor and 100 million who are struggling for the middle class actually end up paying more for transportation, for housing, for health care, for mortgages. They get steered to sub prime lending. . . . The poor pay more for things middle-class America takes for granted." The real situation mainly focuses on FOOD:
Transportation : You don't have a car to get to a supermarket, much less to Costco or Trader Joe's, where the middle class goes to save money. You don't have three hours to take the bus. So you buy groceries at the corner store, where a gallon of milk costs an extra dollar.
Price Planning & Control :Prices in urban corner stores are almost always higher And sometimes, prices in supermarkets in poorer neighborhoods are higher. Many of these stores charge more because the cost of doing business in some neighborhoods is higher.
They are probably paying more on goods because they don't get the low wholesale price that bigger stores get.
Rental of Building :The real estate is higher. The fact that volume is low means fewer sales per worker. They make fewer dollars of revenue per square foot of space. They don't end up making more money. Government should come out with plan of Secure Low Rental like the one they did after world war two.
The House Representative have tagged their Eyes Ball with my slide, than i continue
According to the Census Bureau, more than 37 million people in the country live below the poverty line. The poor know these facts of life. These facts become their lives. They nodded!
When you are poor, you substitute time for money. You have to work a lot of hours and still not make a lot of money. You get squeezed, and your money is squeezed. They laughed! (bastard)
The rich have direct deposit for their paychecks. The poor have check-cashing and payday loan joints, which cost time and money.
"As you've seen with the financial services industry, if people can cut a profit, they do it," The poor pay more for financial services. A lot of people who are 'unbanked' pay $3 for a money order to pay their electric bill. They pay a 2 percent check-cashing fee because they don't have bank services.
The reasons? Part of it is lack of education. But part of it is because people target them. There is evidence that credit-card mills have recently started trolling for the poor. They are targeting the recently bankrupt."
Its during the recession period that the Bankers and the Riches play their CSR (corporate Service Responsibility) by offset these extra charges! and the Government should support all these by giving an access to leverage their yearly taxes!
The Representatives are taking notes! for the reason i am not sure
(i have my full proposal given to them a week before! by hand)"There are social costs of being poor, though it is not clear where the cause and effect is. We know for a fact that on certain measures, people who are poor are often more depressed than people who are not.
I don't know if poverty made them depressed or the depression made them poor. I think the cause and effect is an open question. Some people are so depressed they are not functional. 'I live in a crummy neighborhood. My kids go to a crummy school.' That is not the kind of scenario that would make them happy."
These are partly my speech on that day! after given half and hour with Q and A. I have the proposal in full 5 pages and few appendixes from my research.
USA economy is very unique! i feel guilty if the good systems cannot help to boost the economic and get out from the recession period. There are equally good and bad people in this country. But again, i don't wanna be too vocal and find deeply involves or i will end up with trouble" that's what my university president told me!
