Despite the stimulus and the tax breaks the economy is still unpredictable. And Bill Gates has come out and said the U.S. economy “could take years to recover from the recession and taxes will rise in order to bring the federal budget into balance.” Gates also warned that too much government intervention could worsen the economy’s prospects and instead they should focus on long-term policy goals like improving education.

Improving education is one of the most important steps a government can take toward improving the economy and the prospects of a country long-term. By educating one generation alone the effect is great and by educating many generations, the country will become more stable and developed. Because of the results, improving and implementing education is one of the first things struggling countries do. That’s one of the first things China did and they are now reaping some of the benefits. But improving education alone cannot boost the economy.

After the Great Depression it took years for the economy to recover. It was World War II that finally got the economy on the right path. Gates remarked that this is a similar circumstance and that “when you have a financial crisis like that, its years of digging out.” The budget is very out of balance and even if the economy comes back, without changes it won’t be back in balance.  But in the meantime Gates expects it to be years.

And Gates believes that in order for the economy to return to normal, taxes will raise and entitlements must be moderated. And if changes aren’t made the country will sink deeper and deeper into debt. The recovery will be slow and the government and the American people have to learn to accept that. A slow recovery is disliked by everyone but unfortunately it can’t be sped up. If the government does to much it can make it worse, or just postpone the inevitable. The government has to focus on long-term goals.

The U.S. national debt is now over $12 trillion and only getting higher. States are going bankrupt and don’t know how they are going to pay for all of their services. California, Arizona, Illinois, and New York are on the brink of financial collapse.  And to top it off there are constantly headlines saying that the economy is getting back on track. The figures are saying otherwise and Americans need to prepare for the long haul. It’s going to be a long road and difficult for many to get through but America will triumph just like it always does.

The life of Americans may not be easy but eventually the economy will recover. Life may not be the same as it was before the financial crisis but hopefully it will improve. People will learn not to take things for granted and understand that sometimes things get bad and you have to prepare yourself for them and stay out of debt. Saving and emergency funds are likely to rise because of the turmoil this recession has caused Americans.

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