What will the New Year bring?

Chronicle Staff

Published: Tuesday, December 30th, 2008

It’s anybody’s guess what will happen with the economy in 2009. The year 2008 ended amid economic chaos on Wall Street, which is filtering over to Main Street U.S.A. South Dakota officials say the state has always been somewhat insulated from national economic ups and downs due to the fact that we are not a heavily industrialized state. We rely primarily on agriculture and tourism to fuel our state’s economic engine. In the past, we have been able to weather national economic storms and shrug them off. However, the current economic crisis centering on banking institutions has been global in nature. It’s not just us in the United States who are taking some hard economic hits. About every nation in the world, especially those in Europe, are taking it on the chin also. What happens in our national economy truly affects others around the world. Never has this proven so true as in our current economic downturn. Our government’s initial response to several high profile financial institution failures was a $700 billion bailout package. This highly controversial move came with a shocking lack of oversight on these financial institutions which all appeared to sock the money away in their vaults instead of making loans to viable businesses. Now we are hearing that the incoming Obama administration has a one trillion dollar economic stimulus package waiting in the wings and ready to go after January’s inauguration. This reportedly will involve national road and bridge construction projects meant to stimulate our nation’s lagging economy. Two of the so-called Big Three automakers have been the recipients of some $15 billion in federal loans so far to sustain their operations through the first part of 2009. General Motors and Chrysler said the money is needed to keep them afloat, while Ford says it has enough cash to get through the next year if things don’t get much worse. Much of the problem hinges on the inability of prospective auto buyers to secure a bank loan. Some economists say things are bound to get worse before they get better. Even President-elect Obama admits it may take years to turn things around again. This is not a very happy prospect to look forward to in 2009.   But, Americans have faced tough times before and come out the better for it. Let’s hope the year 2009 is the beginning of the economic recovery in this great country of ours and that it will, indeed, be a Happy New Year!