Effects Of The Great Recession On The Recession Essay

Effects Of The Great Recession On The Recession Essay

Length: 759 words (2.2 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

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 ...

... middle of paper ...

...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.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The Economic Effects Of The Great Recession Essay

- Over the course of a decade, the United States economy fluctuated; reaching great highs, and unforeseeable lows. In hindsight, many of these changes were obvious and should have been predictable and preventable; ignorance and incompetence of those in power are the main reason why, to the public, the economy changed so greatly. The greatest of these unforeseeable lows was a major economic crisis known as the Great Recession, which led to years of turmoil. If the government did not step in to aid the economy, the Great Recession would have had the potential to drive America into times as dark as the Great Depression....   [tags: Great Depression, Unemployment, Business cycle]

Better Essays
859 words (2.5 pages)

The Effects Of The Great Recession On The Economy Essay

- 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]

Better Essays
2017 words (5.8 pages)

Effects of the Great Recession on Families Essay

- 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]

Better Essays
808 words (2.3 pages)

In the Wake of the Great Recession: Long-Term Effects of Fiscal Policy Essay

- 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]

Better Essays
1578 words (4.5 pages)

The Recession Of The Great Recession Essay

- 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]

Better Essays
1024 words (2.9 pages)

The Great Depression And The Recession Of 2008 Essay

- 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]

Better Essays
1712 words (4.9 pages)

The Great Recession Fiscal Policy: Analyzing Problems and Solutions Essay

- ... Coen and Hickman (1984) studied the long-term effects of a recession in the U.S. in the 1980s. In this study, they focused on the effects of personal income tax changes. They found no permanent effect, but did find the existence of a short-term relationship. Various other studies focused on the use of corporate tax adjustments to stimulate the economy (see Adkisson & Mohammed, 2014; Angelopoulous & Economides, 2007; Lee & Gordon, 2005; Karagianni, Pempetzoglou, & Saraidaris, 2012; Miron, 2010)....   [tags: stimulating the economy]

Better Essays
1416 words (4 pages)

Essay about The Recession Of 2008 Will Not Be Forgotten

- 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]

Better Essays
1664 words (4.8 pages)

Fiscal Policy Following the Great Recession: Purpose and Problem Statements

- The Great Recession in the United States (U.S.) lasted from the end of 2007 to mid-2009 (Economic Policy Institute, n.d.). In response to the conditions within the economy as a result of the Great Recession, the U.S. government implemented various fiscal and monetary policies aimed at improving economic conditions in the U.S. (Blinder & Zandi, 2010). The long-term effects of the fiscal policies implemented in the wake of the Great Recession is the subject matter of a proposed research project. This paper details the purpose and problem statements relative to the proposed research project....   [tags: history, politics, economics]

Better Essays
1623 words (4.6 pages)

The Recession Of 2007- 2010 Essay

- There is not just one probable cause for a country to enter into recession, depression, or a crisis. The recession of 2007- 2010 was hugely devastating in a sense people lost employment opportunities, standard of living, increase in personal debt, and the list goes on. From a macroeconomic prospective Gross Domestic Product/ Gross National Product; GDP/ GNP, inflation rate, fiscal & monetary policy, employment/unemployment rate, purchasing power of currency, poverty rate of nation is the major way to figure out the actual value of the country....   [tags: Great Depression, United States]

Better Essays
1914 words (5.5 pages)