States Need to Better Assess and Rebuild their Economies

We all know that the effects of the 2009 economic crisis in the United States has affected the entire country. There has been a general slowdown of economic activity everywhere, with many of the associated effects such as a drop in real estate prices, businesses failing, massive layoffs, continued unemployment, etc. While some may say that the economy is starting to pick up in general, there are still some places in the country where recovery has been slow and the effects of the recession are still being felt strongly. In many cases, some states have been experiencing economic decline for years before the economic climate changed. Some common examples include Wyoming, the state that is responsible for producing over 40% of the coal supply in the United States. Demand for coal has decreased over the years as energy production companies have sought alternatives that are less damaging to the environment. This has caused an overall drop in coal production which has hit the state quite hard, as it has few other industries. Alabama's economic decline has been mainly linked to the housing market and has continued its decline until late in 2011. Housing prices are among their lowest points in the state and new development of housing units and commercial real estate has gone down significantly, nearly grinding to a halt. The fact that mortgage loans are getting a lot more difficult to obtain has not helped the state's economy, as there are plenty of properties that are now sitting vacant, unable to find owners, even if prices are at their lowest points in years. One of the hopes for Alabama is that the state will be able to boost its economy from its health sector, as there is increased growth in medical research facilities. But the real estate issue is likely to keep the state down even if other sectors of economic activity start to pick up. These are just two examples of states that are having specific problems with their economy. If the nation as a whole is supposed to recover from its economic worries and get back on track, federal and state government officials need to do their job right in helping steer the economy the right way. A good course of action would involve evaluating the economic situation in every state. This would give a more detailed portrait of the economic problems that are plaguing certain parts of the country and would also give information on which states are truly struggling the most. Next, immediate action needs to be taken to address the issues found at the state level. In some cases, existing economic sectors could use a boost. Other states should see if they could diversify their economy more to give them a better chance of coming out of the recession. This is especially important for states such as Wyoming or Montana, which are largely dependent on mining and agriculture for their state's economic output.