Unemployment Last Year, the American

Unemployment

Last year, the American population reached the peak of increased access to mortgages, and most people saw this as the first step in fulfilling their own American dream. Yet, in economic terms, it led to the offering of sub-prime mortgages, and the situation materialized in the borrowers' inability to reimburse their loans. Banks were as such no longer able, nor willing, to offer credits, not even to the most eligible candidates. The credit crunch materialized in the demise of the American real estate sector, crisis which soon expanded to other industries. The first to be affected were the furniture and home appliance industry. Construction materials also plunged, followed immediately afterwards by the automobile industry and so on; basically, the credit crunch gave birth to a series of chain reactions.

But the problems did not only expand within the country, but soon impacted United States' trading partners, and their own partners; this might make one wonder of the real benefits of globalization and market liberalization. Despite this being an intriguing topic, it does not constitute the matter of the current discussion. Returning to the North American country, the financial crisis revealed the existence of deep social problems, such as a reduced medical coverage, an amounting federal debt or incremental levels of unemployment. Yet, it is this opinion that these problems were not created by the economic crisis, but that they had been amounting for years and were neglected by the successive administrations. What the crisis did then was to present them to the public in their entire severity.

A main problem is that of medical coverage, which is far from being sufficient for the American population. The current presidential administration strives to revolve the matter, but its strategy's chances of success are questionable. Basically, Obama wants to increase the quality and coverage of the medical services, but in the same time, reduce the costs of managing the health care sector. Not only that this endeavor seems difficult to achieve, it is even a paradox.

Costs within the medical field cannot be estimated and clearly budgeted as people get sick outside pre-established budgets and statistics. New viruses emerge, the most recent example being the A1H1 virus, responsible for the swine flu. New means of dealing with such a situation are imposed and extraordinary costs could easily be incurred. Then, there is the growing need to research and find cures for the amounting types of cancers and other seemingly incurable diseases. All in all, despite the business, political and economic ideas and concepts formally and apparently logically explained, such as operational efficiency, fact remains that the real applicability of the new Medicare reform seems reduced.