Great Recession Analysis

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Recommended: Effects of the Great Recession in the United States

It happens all the time, especially if Money isn’t spent wisely. That’s why during 2007-2009 Texas and Rio Grande Valley had an economy downturn. To make my point clear about what I’m going to be discussing let me define what “The great recession is,” basically it’s an economic fail or downturn. Usually things don’t go as planned because of various reasons. In fact United States first experienced this in 2007. What had caused the Great recession then was said to be the US market housing. Great Recession affected consumer spending, government revenues, business investments, trades with Mexico, and unemployment. As I continue I will explain how each and one of those were affected and their long term effects.
Consumer spending:It began with a bursting of almost 8 trillion dollar in housing. The wealthy were getting a lot of cutbacks which resulted in no consumer spending. What ends up happening after that is the following; loss of consumption plus financial market in debt equals no money to spend in other words for the financial market there were no big deals for example business investments. Usually when people do those types of investments money wise it’s high, now with this people didn’t have time to plan nor invest in anything. Added to all that people were also losing their jobs. Around 2008 and 2009 U.S had lost around 8.4 million jobs. Even after summer of 2009 the growth wasn’t that high. It took almost 10 months for the economy to regain jobs that were lost during that period of time. Even then the recovery wasn’t high as they expected, it took time. The job losses meant family incomes were dropping, poverty had risen and no one had health insurance. It was tough during that time, and if U.S doesn’t watch what is being done ...

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...d to during the Great Moderation.
Unemployment was greatly affected during and even after the Great Recession. During many people were getting dismissed from their jobs due to the U.S government to having enough money to pay the employees. During this time U.S had to save and that’s what caused employment to decrease. Even after the Great Recession finding a job was tough, people were long -term unemployed some had to wait around six months to find a job others even longer. By 2010 long-term unemployed were rapidly increasing to having a job. Other long-term unemployed left labor force permanently and some of those ended up on disability rolls. People needed money as much as the government did too. It was a win or lose deal and everyone wanted to win so that made it tough. Keeping in mind that what was going to be done was what the government wanted not the people.

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