Consumers are spending less in this recession, and that is causing businesses to hit the brakes on hiring new employees. Unfortunately, that is just another facilitator of the domino effect in this continuing recession. It is a “Catch 22” that unemployment is rapidly approaching double digits and seemingly the only way that employers will increase hiring is if consumers spend more.
It may take quite a bit of time to recover from this sluggish economy. Many families who have a wage earner who has lost a job have been forced to deplete their savings or incur credit card debt to make ends meet. Most who cannot afford to repay 401k loans end up with IRS income tax liability. Those who have no other choice but to use their credit cards realize that they are being charged a large amount of interest. Sometimes, either a debt settlement plan or filing bankruptcy are the only options.