Effects Of The Great Recession On The Recession Essay

Effects Of The Great Recession On The Recession Essay

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The underlying causes of the great recession mostly pertain to the burst of the housing bubble and collapse of several major investment banks. Banks were handing out risky mortgages to unproven borrowers all the time knowing is just was not right. What it all boils down to is an irresponsible consumer borrowing money from a banker without high regards to ethics or morals. The effects of the recession of the recession will be felt for years to come. Unemployment during the recession was at its highest since the great depression. Millions of homeowners’ houses went into foreclosure. People lost their entire life savings and retirement plans after stocks crashed. In essence, the initial effects of the recession were; outrageous unemployment rates, home foreclosures, and loss of investments/retirements. Below are the effects of the recession in detail.
At the start off the great recession unemployment rates soared, which in effect made the recession even worse. This caused Consumers to stop spending money and in turn, unemployment rates raised even higher. When people are not working, they cannot pay their bills or even afford to feed their families. Some of this unemployment was utterly avoidable. Companies started laying people off based on speculation, which creates a domino effect. The United States of America was not the only country to feel the effects of the recession. The recession was a global catastrophe that was felt throughout the world. 8.8 million jobs were lost in the United States during the recession. When unemployment rates rise, the standard of living goes down, Crime rates go up, and more people abuse drugs and alcohol. All of these items mentioned have a direct effect on the well-being of future generations. In ...


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...etirees found themselves without retirement income coming in and were forced to get part-time jobs to survive and not become homeless. The younger generations are expected to fare better, seeing as how they will have many years to build investments.
“The Great Recession” will go to show the world how vulnerable a place it really is. High unemployment, foreclosure, and no retirement are three of the biggest fears that a person can hear. Having a good job, owning a home, and retiring at an age where one still has life left to enjoy is the heart of the American dream. Most of these underlying problems can be rectified through stricter laws and regulations in the banking industry and financial counseling to consumers. The government, citizens, and businesses will have to work together and educate one another so that catastrophes of this magnitude will never happen again.

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