The Great Recession was a period of economic turmoil in America due to the failure of the housing market. Officially, the Great Recession began in 2007 and ended with 2009, but its appalling effects can still be seen today. It began when Americans and corporate institutions invested over 8 trillion dollars in the housing market, believing that it is an extremely lucrative business venture. People believed that since housing prices were skyrocketing, any investment will have a positive return in the future, even if it means taking out a large loan in the present. Also, investors believed that even if people defaulted on their loans, the investors can still get their money back by selling the home. Though these investments were made on a whim, without much concern of...
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...ded a new, modern culture. Economically, the boom of smartphones created around $150 billion dollars in GDP growth and around seven hundred thousand new jobs. This is seen with companies like Apple and Google, having factories around the world producing smartphones and programmers, engineers, and designers creating new generations of products. Smartphones now have a large portion of the market share, and is a strong component of the economy.
The United States economy faced pitfalls and successes, but continues to persevere as one of the leading economies in the world. Domestically, average unemployment is lowering and family income is increasing; America has recovered from the Great Recession and is working towards preventing another economic downfall. The evolution or creation of any trend in society is unpredictable, and the future of America’s economy is unclear.
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- Since the mid-1900s, the United States (U.S.) has experienced ten noteworthy recessions (BLS, 2012). The recession in the most-recent memory has been coined the Great Recession, and it officially lasted from the end of 2007 through the middle of 2009 (BLS, 2012; Economic Policy Institute, n.d.). Keynesian supporters promote government intervention when economic conditions weaken in order to reestablish consumer confidence, encourage spending, and promote economic growth (Gaber, Gruevski, & Gaber, 2013).... [tags: economic declines, recession]
1578 words (4.5 pages)
- After the recession following the 9/11 attacks, the United States appeared to be enjoying a period of prosperity. Home values were rising and interest rates were radiatively low. Unemployment was below 5 %. However, there were sounds rippling that those were mainly low paying jobs being created during this period. During the late summer of the 2008 presidential election, John McCain declared that the fundamentals of the economy were sound. By the Fall, this proved not to be the case. America was headed for the worst economic period since The Great Depression.... [tags: economy, housing, jobs]
808 words (2.3 pages)
- December of 2007 saw the beginning of the worst economic downturn in memorable history; not since the end of the Great Depression in 1939 has the world seen such a devastating and long-lasting economic breakdown. The Great Recession shook the public’s faith in the capitalist system and silenced those who claimed a modern economy was impervious to another broad collapse like the one in 1929. Discontent and mistrust from the public has built not only with large corporations and the financial sector, but also with the government whose legislature and policies in recent decades seem to coincide with the interests of private corporate power-houses.... [tags: Great Depression, Business cycle]
1024 words (2.9 pages)
- ... The labor force participation rate is calculated with people sixteen years of age and older that are employed, while the unemployment rate is measured by the percent of the total number of people sixteen years of age and older who do not have a job (Krugman & Wells. 2012). The United States assigns the Bureau of Labor Statistics (BLS) with the task of tracking the employment and unemployment rate of the labor force in the United States (BOOK). The BLS breaks down the unemployment and labor rate much farther than just how many are working and not working and breaks the cart down to race, age, gender, and level of schooling from no high school diploma to bachelors degree and higher for t... [tags: the business cycle, economic downturns]
1120 words (3.2 pages)
- The nation is in the grips of an employment deficit that has crippled the overall growth of the economy. While the effects of the Great Recession are starting to balance out, he overall job creation are still not where they need to be. Businesses, both small and big alike, have taken massive losses that resulted in several loss of jobs and workers who have saturated the unemployment lines from coast to coast. Highly skilled and qualified workers with several years of schooling and job training are having difficulty searching and attaining a well paying job.... [tags: Unemployment, United States, Economics]
2017 words (5.8 pages)
- Throughout history there have only been two major economic downturns. The Great Depression and the Recession of 2008 both occurred due to poor financial policies and excessive spending. Both events left people with a sense of hopelessness and vulnerability. A comparison of the Great Depression Era and The Recession of 2008 reveals similarities in causes and effects economically, socially, and politically. Life after the war took a toll on many Americans. The destruction of the war caused many people to lose faith in reason and progress.... [tags: Great Depression, Unemployment, United States]
1712 words (4.9 pages)
- Keynesian supporters suggest that changes in the U.S. economy can, and should, be influenced through governmental intervention (Gaber, Gruevski, & Gaber, 2013). To influence economic conditions within the U.S., the government employs the use of monetary and/or fiscal policies. Monetary policies include changes in the money supply or interest rates. On the other hand, fiscal policies include changes in government taxation, spending, and borrowing. In either case, the type of policy implementation depends on the movement in the economy, i.e.... [tags: economic weakness, great recession]
1622 words (4.6 pages)
- The economic recession of the late 2000s has been called the greatest economic downturn our country has faced since the Great Depression. American businesses and banks are failing, foreclosures are spreading like wildfire, and unemployment numbers have reached double digits. Under our current president, many are optimistic, but many others are fearful for the future. Economists have different speculations regarding the causes of the “Great Recession”. Some blame it on higher prices for necessities like oil.... [tags: economy, government criticism, analysis]
1179 words (3.4 pages)
- The Great Recession of 2008 will not be forgotten; it was the worst recession since the Great Depression in the 1930’s. It resulted in massive job losses, high unemployment, the debt market freezing, businesses closing, record housing foreclosures, massive stock market losses, and the ‘too big to fail’ slogan which resulted in the federal government infusing major banks and U.S. automakers with taxpayer money to stabilize the financial markets and economy (United States Senate, 2011). There were several events that preceded the 2008 recession that set the stage for the financial crisis.... [tags: Subprime mortgage crisis, Debt, United States]
1664 words (4.8 pages)
- ... In the voting process, the bill was approved first at the House then at the Senate; no one from Republicans voted for the bill at the House, and no Democrats voted against the bill at the Senate, proving that the bill was largely supported by Democrats but was strongly opposed by Republicans (“About ARRA”). The critics of ARRA point out how it did not accomplish the goals to an extent which Obama initially intended, and that it only put the country into more trouble than without it. They argue that unemployment rate, shovel-ready infrastructure construction projects, poverty number, green-economy jobs, and hybrid car production were all not at the projected level (Reince).... [tags: high risk loans, stimulus package]
1059 words (3 pages)
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