Changes

==Indicators down==

==Indicators down==

Oil, metal and grain (rice, wheat, corn) prices, after hitting record levels in the summer of 2008, have plunged. Oil went from $145 a barrel to $42.

Oil, metal and grain (rice, wheat, corn) prices, after hitting record levels in the summer of 2008, plunged. Crude oil went from $145 a barrel to $42.<ref>[http://research.stlouisfed.org/fred2/graph/fredgraph.png?graph_id=113057 West Texas Intermediate Crude (WTI) 2007-01-01 to 2013-02-01</ref>

Retail sales in the U.S. and worldwide are in a major slump, with the slowest Christmas shopping season in decades.  American manufacturing contracted in November 2008 at the steepest rate in 26 years. The U.S. lost some 2.6 million jobs in 2008, the worst record since the end of World War II,  Factory indexes in China, Britain, Europe, and Russia all fell to record lows.  

Retail sales in the U.S. and worldwide went into a major slump, with the slowest Christmas shopping season in decades.  American manufacturing contracted in November 2008 at the steepest rate in 26 years. The U.S. lost some 4 million jobs in 2008,<ref>[http://research.stlouisfed.org/fred2/graph/fredgraph.png?graph_id=109262 Total Non-Farm Payrolls, U.S. Dept. of Labor].</ref> the worst record since the end of World War II,  Factory indexes in China, Britain, Europe, and Russia all fell to record lows.  

In January 2009 the downturn worsened, as major companies and small firms announced round after round of layoffs and postponement of expansion plans.  The financial sector worsened sharply in January, indicating the the huge financial bailouts of 2008 were not enough. The steep slide continued as unsold goods piled up. The GDP (gross domestic product) shrank at a -6.2% annual rate in the fourth quarter (last three months) of 2008, the sharpest contraction in 26 years.<ref>Jack Healy And Louis Uchitelle, "Steep Slide in U.S. Economy as Unsold Goods Pile Up," [http://www.nytimes.com/2009/01/31/business/economy/31econ.html?_r=1&hp ''New York Times'' Jan. 30, 2009]</ref>

In January 2009 the downturn worsened, as major companies and small firms announced round after round of layoffs and postponement of expansion plans.  The financial sector worsened sharply in January, indicating the huge financial bailouts of 2008 were inadequate. The steep slide continued as unsold goods piled up. The GDP (gross domestic product) shrank at a -6.2% annual rate in the fourth quarter (last three months) of 2008, the sharpest contraction in 26 years.<ref>Jack Healy And Louis Uchitelle, "Steep Slide in U.S. Economy as Unsold Goods Pile Up," [http://www.nytimes.com/2009/01/31/business/economy/31econ.html?_r=1&hp ''New York Times'' Jan. 30, 2009]</ref>

Meanwhile, at the urging of the [[Obama Administration]], Congress passed a $789 billion stimulus package, combining [[Direct_spending#New_spending|new spending]] and tax cuts, in the hopes of turning the economy around by mid-2009.  Republicans were nearly unanimous against the proposal, as their smaller package was voted down. Canada, although not as hard hit as the U.S., is preparing its own stimulus package.  

Meanwhile, at the urging of the [[Obama Administration]], Congress passed a $789 billion stimulus package, combining [[Direct_spending#New_spending|new spending]] and tax cuts, in the hopes of Keynesian revival by mid-2009.  Republicans were nearly unanimous against the proposal, as their smaller package was voted down. Canada, although not as hard hit as the U.S., prepared its own stimulus package.  

*see also [[Economic stimulus package]]

*see also [[Economic stimulus package]]

Economists from all political viewpoints predict the slide in GDP is likely to continue at an alarming pace well into summer 2009 as consumers continue to curtail spending and businesses reduce their capital investments and cut their payrolls.

Economists from all political viewpoints predicted the slide in GDP was likely to continue at an alarming pace well into summer 2009 as consumers curtailed spending and businesses reduced their capital investments and cut payrolls.

 

==Income and Wealth==

==Income and Wealth==

Wealth holding took a heavy blow. Incomes were down too, but not as dramatically.

Wealth holding took a heavy blow. Incomes were down too, but not as dramatically.