Mike Chavez has owned a janitorial service in Albuquerque for more than three decades.
"I've been in business for 35 years," he said, "and the last eight years have been terrible."
Chavez said that if the down cycle in the economy continues, he will have to go out of business.
"I'll just retire," he said. "I'll get out. I can't stand it. I'm just barely surviving as it is."
As unemployment rises and the dollar continues to decline, economists say the U.S. has entered a recession.
A recession means the economy has stopped growing, said Don Coes, professor of economics.
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"We are in the early stages of a recession and the economic activity and the GDP, gross domestic product, are growing slowly, if at all," Coes said.
Fluctuations in the economy is normal in the business cycle, Coes said.
"In any real economy, you expect the economy to get bigger, because there is a lot that it can produce," he said.
Coes said the country's population and developments in technology affect the economy.
The U.S. has both factors at their disposal, but it is still in a downward spiral.
"For the U.S. economy, we ought to be growing at 2 1/2, 3 percent in real terms," he said.
How it happened
The country lost money by decreasing the amount of money collected from taxpayers, Coes said.
"Those may have been well-intentioned - that depends on your political viewpoint - but the problem with tax cuts is that they raise the financing question whether or not to like the tax cut and who got them," he said.
It doesn't matter which party a voter aligns themselves with, their decision on who to vote for should be based on whose legislation will be able to finance the tax cut, Coes said.
It is common for presidents to borrow money from other countries, but it has put the U.S. into debt, he said.
"They can borrow today, they can borrow tomorrow, and they can borrow next week," he said. "But they can't borrow indefinitely without running up some consequences in the future."
The consequence the U.S. will now face is finding the funds to pay back its debt.
The war in Iraq has had a huge effect on the country's economy, he said.
"Debt in recent years is more driven by the government not collecting anything near in taxes what it spent, particularly on Iraq," he said.
What can students expect?
College graduates entering the workforce may be those hit hardest by the recession, Coes said.
Businesses will cut back on their expansion but will not want to lose valuable and experienced workers, he said.
"In fact, that is an expensive thing to do," he said. "If somebody has been at your company for five or 10 years, they are valuable, and ruling them out may really mess up your situation."
The good news is recessions don't last forever, and the economy will get better, Coes said.
"A recession is typically more of a sharp downturn and then a slower climb out of them," he said. "In this particular case, it can last well through the electoral cycle and well into the first year of the next presidency."
Student Johnny Dunn said he is worried about the state of the economy.
"I think that if the right person gets elected, we'll have a good chance of getting out of it," he said.
The New Mexican dollar
In a recession, it is normal for people to worry about their future, said Joelle Mevi, chief investment officer for New Mexico.
"A recession is represented with higher unemployment rates. It is represented by consumer sentiment being a little bit nervous," Mevi said. "Consumers aren't spending so much."
Cautious consumers will have a domino effect on the economy. Consumers will spend less money, and businesses will supply less product, she said.
For small-business owners, cautious consumers could be the difference between staying in business or looking for other options.
Chavez, who owns the janitorial service, isn't the only one feeling the effects of the recession.
Fleur Rietmeijer works at a jewelry store in Old Town.
Rietmeijer said the business has managed to survive a changing economy, but it had to downsize.
"The owner used to have 10 stores," she said. "But now, because of the economy, he has four."
Jewelry is a luxury item and a purchase that many consumers can do without when the economy is in decline, Rietmeijer said.
"People cannot afford it anymore," she said. "It is becoming expensive for people when they don't have much money to spare."
The rise in gas prices has made it difficult for many people to travel, Rietmeijer said.
Tourist attractions, such as Old Town, suffer when would-be tourists choose to stay home, she said.
The effect of the U.S. economy will go beyond its borders, Mevi said.
She said people in the U.S. may spend less money, but that won't stop foreign tourists from taking advantage of the situation.
New Mexico is a tourism destination and has the potential to make the money other parts of the country will lose, she said.
"If the dollar is very weak against the European exchange or the Asian exchange, then that promotes a lot of tourism from outside the country," she said.
The next president
The economy is in a recession now, but that could change in the next year, Coes said.
"Everybody says we should vote on the issues and not on the character or personality of the candidate," he said. "I think that is probably wrong. The issues change and certainly the economy will change."
The next president should be able to respond to the changes that happen, Coes said.
"The (recession) could be behind us in a year or so," he said. "What we hope is that we have the right sort of person who can respond to that change."
