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Question:

Why is the Economy bad?

And when did it start to get bad?

Answer:

Housing bubble caused by banks giving loans to people who couldn't really afford them, creating an oversupply of housing and inflated prices. When the business cycle slowed down, people who lost their jobs couldn't pay their mortgages, so they lost their houses, creating a glut of housing, driving home prices down, which made the value of lots of houses less than their mortgages, which caused other people to walk away from their loans, creating more excess housing, and so on and so on. This meant that the building sector almost went to a standstill, and the banks had a lot of bad loans, so they've reduced lending to small businesses, which means they're not hiring.
Everything is relative to Welfare abuse, benefit fraud, illegal aliens, open borders, unemployment and State bankruptcy. They all have one thing in common. Illegal aliens. If you look at the rate of invasion and unemployment, it is remarkably the same. It has just been a matter of time until the Federal Government got caught up in the mix. Their spending and lack of governing is the problem as well as States allowing to adopt a welfare minority that are here illegally. Americans are now having to cope with lowering their standards of living because of lack of choice. We can't keep accommodating illegals by allowing anchor babies to support them. They are over here playing our systems and winning. We are the losers and payers.
There are many reasons. Recession is a normal part of the business cycle, but this one has been especially bad. It's mainly due to a credit system collapse spurred by the sub prime mortgage market. Look into the community reinvestment act.
Wow, I am amazed that no one here remembers further back than the Bush administration. The problem dates back further than the 1970's, but that is where I will start. In the 70's is when the government became lax on illegal immigration laws and loosening tariffs on cheap foreign goods, and once again lowered taxes on the rich, and China began dumping cheap merchandise on America. To counter this in the 80s American corporations began outsourcing, and the government once again lowered taxes on the rich. Later in the 80's cities such as Chicago deemed themselves safe havens for illegal immigrants causing a huge influx of illegals to the area. Once again government (Reagan) lowered taxes on the rich, the tech bubble burst, and even more jobs were outsourced. In the late 90's early 2000's we had the SL scandal and Enron which the government had to help the workers financially, Government lowered taxes on the rich. Then war after war, Young Bush cut taxes for the rich and the housing bubble burst and still more jobs being outsourced. So basically over 40 years of outsourcing and tax cuts to the rich have created this corporate/rich Utopia in America where cheap labor will soon come to a job like yours.

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