What a Weak Economy Means for Students

The current state of the economy has everyone talking, but are there any answers?Juniors Allyson Yankle, Mike Lampe, and Assistant Professor of Economics Dr. Justin Dubas gave their insight on the economic recession and what it means for students.

One of the common themes discussed was "trickle-down" economics. This term is used to reference the act of dispersing money in the upper classes and letting it trickle down into the lower classes.

"Trickle-down is nice in theory but doesn't tend to work in practice," said Dubas. There is a growing gap between the rich and poor. The only increase in income over the last few years has been at the top.

Governmental deregulation was also a hot topic. Mike Lampe poses the question:

"Can we reshape thought on regulation?"

It is true that deregulation is a major factor in the recent downfall of the economy. Government regulation can be seen in a negative light but considering the current situation, some former supporters of deregulation are rethinking its validity. One person who would like to implement more regulations is President-elect Barack Obama.

Many politicians, including Obama, have promised to cut taxes for middle-class families as well as to elevate the nation's infrastructure. However, these promises do not necessarily go hand in hand.

Many of the infrastructure improvements would include new roads, bridges, and highways. These projects are generally funded by the taxes American people pay. Taxes also pay for improvements on education and health care programs.

"People expect so much from government programs but then expect tax cuts," says Lampe.

Both Lampe and Dubas agreed that individualism in America is a major factor in our economy's future. We will have to make sacrifices, whether they are in the form of paying more taxes or learning to live with budget cuts in government programs.

"We need almost a change in culture," said Dubas, "I think there's hope, but we need to work together."

With a new leader soon to take office, change is on the horizon. The question is: are we expecting too much?

"Obama will help, but don't expect miracles," said Dubas. This is not to say that Obama's economic plan does not have its strengths. It is simply that because the economy is so weak, it is not likely that any plan will turn over immediate and extraordinary results.

Allyson Yankle also provided some perspective on Obama's economic plan:

"As for if Obama will help or hurt the economy, I want to say that Obama will help the economy. It is important to note, however, that even the greatest ideas might not get through Congress intact or even carried out the way they were envisioned, so there's no real way to say if he will be able to actually help the economy."

As students go out into the working world, all of these factors will have to be considered. Lampe suggests that students must adapt to the situation.

"We need to do what we need to do to make [ourselves] more marketable." Acquiring unique skill sets will certainly keep employers interested.

"Financial literacy will also be important," adds Dubas. In order to survive in a dwindling economy, we need to become aware of our financial situations and act accordingly.

It helps to think of our economy as cyclical as well.

"Capitalism is a cycle of booms and busts," says Dubas, "There will be a recovery, but it will be slow.