A recent poll by CBS News found that nearly 60% of Americans do not believe that the economy is getting better, regardless of what official White House statements profess.
With gas prices rising, unemployment stagnant at 9% and the highest national debt in US history, it’s no wonder that Americans are skeptical of the White House’s claims. Many economists agree with the majority of Americans – the recession is not getting better, and we may be headed toward a situation similar to the fiscal crisis of the late 1970s.
Forbes analyst Charles Kadlec recently wrote a column comparing the current economic conditions to those of the late 1970s. In the early ’70s, the price of gold tripled, mirroring the rising cost of oil during that time. This means that the dollar steadily lost value against gold and oil, as the prices of those commodities increased. The devaluation of the dollar led to high inflation in the late 1970s.
Kadlec draws a parallel between the economic events of the 1970s and the economic events of today. Since 2009, the price of gold has increased 75% – indicating that the value of the dollar against gold has decreased – which Kadlec predicts will lead to a rise in consumer prices in the coming months. This rise will be similar to the increase that occurred after the rise of gold and oil prices in the 1970s.
One may ask what this means for the American consumer today. The rise in the cost of consumer goods and other necessities will negatively impact the wallets of all Americans, but especially the 9% of the population that is out of work. The increase in the cost of goods will make it even harder for the unemployed to make ends meet. This is why, if an individual is in danger of being consumed by debt now, it is wise to file for bankruptcy sooner rather than later.
There are two main types of individual bankruptcy, Chapter 7 (liquidation) and Chapter 13 (repayment plan) bankruptcy. Each has its pros and cons and requirements, it is important to learn which is right for your situation.
Since the economy is stuck in a recessional rut, and prices on goods may very well increase over the next several months, if you or a loved one is struggling to make ends meet and feel overwhelmed by debt, filing for bankruptcy may be a wise next step. Speak with an experienced attorney to discuss your situation.