The current economic situation will force every one to consider carefully how money is spent - Essay Example

Americans, when they are in need of money for making a house or for purchasing a car, will usually approach the banks other financial institutions for loans. The banks have a habit of sanctioning loans without proper enquiries about the financial assets of the person who approached them. Thus the American public got money from financial sources without any barrier whenever they are in need and that resulted in too much spending compared to saving. The current economic situation will force everyone to consider carefully how money is spent.

This paper briefly explains the changes in money spending habits caused by the current financial crisis or economic recession. “A staggering 87% of American families have rethought their eating habits and the food they buy in order to reduce costs. 40% of Americans report they have had to cut back on the amount of food or groceries they purchase in the wake of today’s economic crisis.  Family income is a big factor.  Nearly half — 49% — of those whose annual household income is less than $50,000 say they’ve slashed spending on food in order to make ends meet compared with 28% who earn more”1.

The above statistics clearly show how severe the current economic problem is. Americans, who spend lavishly for food items and their eating, forced to cut down their spending on these commodities because of the current crisis. Many people has lost their jobs and many others under the threat of losing their employment which forced them to reduce their family spending on eating items. Earlier line buses were simply a fashion for the American people. Most of the people used their own vehicles for their traveling needs.

But at present the line buses are running full and people started to use the line buses more frequently to cut down their expenses in order to escape from the current financial crisis. ‘The Impact of the Financial Crisis in Public Transportation is so severe that the nationwide