RRJ

Reference:

GOODMAN, P.S. (2009, August 28)"A Reluctance to Spend May Be Legacy

of Recession ." The New York Times. Retived on August 30,2009,from http://www.nytimes.com/2009/08/29/business/economy/29consumer.ht

ml?_r=2&ref=business>.

Summary:

In recent years, decline in consumer spending in America has led to lower demand for goods and services, discouraging businesses from hiring more workers. As a result of declining consumer spending, economic activities are moving toward recession. In addition, lower income families can not borrow and higher income families can not feel rich. Moreover, unemployment is expected to climb higher. Working hours have been slashed even for families that increasingly depend upon paychecks to finance spending. Experts say that there is still a lot of debt, so the economy will need more time to recover.

Reaction:

The U.S economy is the strongest in the world. In addition, all economic activities are successful, such as industry, banks, insurance companies, and financial markets. Moreover, people can borrow from banks for buying houses, cars, and jewelry. Also there are a lot of opportunities for people to get jobs. Because of the financial crisis, Americans’ life has changed to difficult situation, many businesses have gone bankrupt , banks slipped into debt and a lot of people have lost their jobs. For solving these problems, I suggest that American government should provide cash in banks, support businesses, and provide financial assistance to families.