The Economic Crisis

The Economic Crisis

Jenefer May

COMM/215

January 17, 2012

Vicky Hatch

The Economic Crisis

The use of credit cards and luxurious purchases was a normal part of life for every American and it was a sign of economic growth. Until the economic crisis, it collapsed because of the greed in the American consumer whose no longer satisfied with the basic essentials, but he or she also desire to spend money on things he or she cannot afford like bigger homes, credit card debt, home improvements, and luxurious cars and trips. The careless spending of American households caused the economy to collapse. Some Americans would say the economy is still good and even doing better than when the economy collapsed back in 2008, and the national debt has nothing to do with how money is spent. However, the national economy is still in shambles and trying to slowly recover from consumers' carelessness.

Looking back to when the United States economy was healthy and growing, when there was an increase in sales in the housing market, there was a demand for new homes everywhere, especially in Utah. It pumped money back into the state's economy as home building and consumer spending started to increase. From my own personal experience in 2002, a home buyer such as myself, could purchase a brand new affordable home a few miles from Salt Lake City for $105,000 such as a split entry home that included three bedrooms, 1 full bathroom, a two car garage, and enough space for room to add an additional family room, one bedroom, and a second bathroom. The same home was sold in 2008 for $157,500. Selling the home was a decision that saved money by moving closer to work and avoiding long distance driving with the increase in gas prices. Gas prices had increased dramatically from $1.95 in 2006 to $4.16 in 2008 (gasbuddy.com, 2000-2012).

Any individual that is current with the news and financials knows that the economic troubles started to take place as people spent the equity in their home to remodel, take trips, and buy investment properties. The Home Garden Television network (HGTV) became popular to all homeowners who watched as they received advice on remodeling ideas and home-buying tips. As homeowners