With financial markets in turmoil and prices rising, there's plenty of speculation that we are in the midst of a national recession.
As the national economy goes into a roller coaster, Magic Valley Residents can see the writing on the wall.
Margie Stepheson says, “Do you think we're in a recession right now? Yeah, we are. Why is that? Very, you can see it!”
Dennis Henderson says, “I think that most people in this area have seen their salaries, kind of, become an issue as far as gas prices and stuff like that.”
Local economists are confirming those fears.
Dr. John Hurley says, “Are we in a recession? Yes. Is it a depression? No. Are we going to go into a depression? No.”
Economist Doctor John Hurley says that not only does the current financial situation show glimmers of hope; he says it's also a natural process.
Hurley says, “Because expansion, peaking, recession, the declines, are normal parts of the business cycle of the economies.”
He says that this current recession could hit harder than previous ones.
The general level of prices has increased over the past year, due in part to inflation.
Hurley says, “What's happening to the general level of prices. What's happening to my pocket book.”
But in the next few months, while inflation is expected to increase, the rate of increase should slow.
The government's seven-hundred-billion dollar bailout should help re-grease the economic engine, and overall, rural areas like Southern Idaho won't be hit as hard, due to the area's agricultural backbone.
Hurley says, “Living in the rural areas like this, we live in the cycles, the wonderful cycles of nature.And they don't stop, we don't stop.”
Andrew Logsdon, KMVT news.