Ever since the economic downturn began in December 2007, everyone has been more concerned than ever with the strength of the US economy.
Never before has the economy been such a focus of conversation. From newscasts to beauty shop gossip, it seems the state of the US economy is a topic that everyone is interested in.
While the US economy is certainly better off now than it was during the economic downturn, the real question is: Will the trend of strengthening continue?
I remember how scared I was graduating from college in 2009. I went to a top 25 school and thought I would have no problem finding a job after college. I was wrong. What I found was a part time job at a museum and then I got an acceptance to graduate school and went because I had no other options. I know I’m not alone.
When I think back to all of the different industries that were affected in the downturn, I found it interesting that many US industries, like the housing sector, the automobile industry, and the big banks, saw their bubble burst and then begin the long road to recovery. However, even during the worst of times, the agricultural sector remained strong. For the most part, farmers across the country still saw profits and in many areas, record high profits, while the rest of country was floundering.
Now that many sectors are nearing full recovery, the agricultural industry is feeling the pain that the rest of the country experienced back in the late 2000’s.
Commodity prices are way down on cash crops, while expenses remain high and agricultural land is still being sold for record high prices. Agricultural lenders are concerned with what’s coming in the remainder of 2014 and the next few years. With the high land prices and low commodity prices, will farmers be able to continue as they have in years past?
Though you may be thinking that the downturn in the agricultural sector doesn’t affect you, it actually does affect all of us every single day. Whenever you go to the grocery store and fill up your cart, even with processed foods, like cereal or frozen pizza, you are buying an agricultural product. What happens in agriculture, from commodity prices to weather issues, like drought or flood, affects the price of your food and household goods.
Another huge factor in the recovery of the US and agricultural economy is trade with other countries. Right now, trade has become stressed with some of the US’s biggest former supporters. Some of the US’s products are being frowned upon in foreign countries, which isn’t good news for US citizens, as our livelihood as a nation often relies on trade agreements with these foreign countries.
Ultimately, it’s clear that while some sectors of our economy have begun recovering, others have just begun to see an economic downturn. Overall, the perception is that the US economy is getting better, but only time will tell us if that’s really true.
Do you think the US economy is improving?