The Great Recession: The Worst Tragedy
explanatory Essay
1302 words
The Great Recession, known as the worst tragedy that has happened to the United States’ economy ever since the Great Depression back in the 1920s, occurred between 2007 through 2009. According to Investopedia, the definition of recession is defined as, “ a significant decline in activity across the economy, lasting longer than a few months.” In December 2007, the United States noticed its first sign of being in a state of recession when the Gross Domestic Product (GDP) per cita had decrease for two consecutive quarters. The Great Recession, December 2007 through June 2009 marks an unstable 18 months for the United States’ economy. There is countless amounts of people will not ever forget this tragic period for middle to lower class families. …show more content…
The Federal Reserve banks interest rates went 6.5% to as low one percent. This decision was made by federal chairman, Allen Greenspan, to ensure that the economy would stay strong for more years to come, but would later find out his plans backfired. The one percent low interest rates made it more appealing to Americans to take out more loans, they would most likely struggle paying back. These people are consider as risky business decisions and labeled in the housing market as unrated. In addition, the one percent interest rates also made homebuyers and investors run to the banks for huge loans. The home buyers wanted huge loans to open spread open their budget for options on homes. The investor wanted big loans to make bigger profits off their investments. So at the time most people wanted to take full advantages of these low interest rates or this so called cheap money. The banks being so greedy at this time, they gave out loans to risky people who are close or borderline accepted. This low interest rates encouraged home buyers to purchased houses. So this caused a shift in the demand curve to increase, homebuilders were force to build houses to keep up with demand. However the demand increase to due to the low interest rates were not a true reflection on the housing market. Many critics and politician called this mistake by the Federal Reserve the housing bubble lax. After banks noticed home price was increasing due to increase of demand, they didn’t feel so comfortable any more handing out loans. They also noticed that some of their risky loans were hurting them when people couldn’t afford or didn’t pay them back. So all the major banks decided they would stop giving out loans and began to apply for
In this essay, the author
- Describes the great recession as the worst tragedy that has happened to the united states’ economy since the 1920s.
- Explains that the federal reserve's low interest rates made it more appealing to americans to take out more loans, which led to a shift in the demand curve.
- Explains that the economists in the government noticed low interest rates and risky loans. they noticed that investors were using these huge loans to buy a number of houses just to resell to home buyers.
- Describes the great recession as the worst tragedy that has happened to the united states’ economy since the 1920s.
- Explains that the federal reserve's low interest rates made it more appealing to americans to take out more loans, which led to a shift in the demand curve.
- Explains that the economists in the government noticed low interest rates and risky loans. they noticed that investors were using these huge loans to buy a number of houses just to resell to home buyers.
- Explains how the low interest rates caused a recession in the united states. the community reinvestment act was intended to inspire depository institutions to help meet the credit needs of low-income neighborhoods.
- Explains that the housing and bank markets were declining from not recouping money off of the bad loans and low interest rates, which caused some major banks and investors to file for bankruptcy.
- Explains that the united states has been on a slow struggle to get back to where it once was in terms of economics. salary and wages declined are still an ongoing result from the great recession.
- Opines that the great recession is the worst tragedy that has happened to the united states since the depression. the housing crisis caused the government to implement new policies.
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- The Dissection of the Great Recessionanalytical essayThe Great Recession is the worst economic downturn since the Great Depression. Many people who are ignorant of economics have the tendency to blame financial institutions for the recession. Economists and writers, such as Robert D. Putnam and David Colander have adopted their own hypothesis as to why the recession occurred and have offered their solutions on how the economy is able to recover. The decline of the American economy was caused by specific aspects, such as gentrification and unemployment.
In this essay, the author
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- Analyzes how robert d. putnam's new york times article "crumbling american dreams" helps the reader understand the economy from a cultural perspective.
- Analyzes how the great recession of 2008-2009 and the blue-collar depression helped the american economy.
- Explains that many people who are ignorant of economics have the tendency to blame financial institutions for the recession. economists and writers, such as robert d. putnam and david colander have adopted their own hypothesis.
- Analyzes how robert d. putnam's new york times article "crumbling american dreams" helps the reader understand the economy from a cultural perspective.
- Analyzes how the great recession of 2008-2009 and the blue-collar depression helped the american economy.
- Explains that in chapter 17, the cause of the recession was unemployment, which can be best described by okun's rule of thumb.
- Analyzes how colander argues that the recession was caused by the ratio of net worth to gdp and year.
- Analyzes how the manifesto for economic sense argues that public policy should act as a stabilizing force, attempting to sustain spending, to stop the economic crisis.
- Analyzes how colander introduces his view in "a structural stagnation policy dilemma". he suggests that structural stagnation was the root of the recession.
- Analyzes how jon d. wisman's article "wage stagnation, rising inequality, and the financial crisis of 2008" argues that the wealthy took larger shares of income and decreased consumption.
893 wordsRead More - The Pros And Cons Of The Great Recessionanalytical essayThe Great Recession of 2007-2009 was very harmful to the economy of the United states. Many people lost their jobs and were forced to work at lower wages, so the demand for consumer goods dropped. Homeowners were also hurt because the value of housing and real estate crashed. This decrease in wealth pushed back the retirement age for many people.
In this essay, the author
- Explains that the great recession of 2007-2009 was very harmful to the economy of the united states.
- Explains that things stabilized after my dad remarried because my stepmom also used her income to contribute towards paying bills. he later admitted that he was lucky to have gotten married at that time.
- Explains that the great recession was caused by the housing market crash in the late 1990s. people bought new houses with a zero-down payment to sell them for profit.
- Explains that the great recession of 2007-2009 was very harmful to the economy of the united states.
- Explains that things stabilized after my dad remarried because my stepmom also used her income to contribute towards paying bills. he later admitted that he was lucky to have gotten married at that time.
- Explains that the great recession was caused by the housing market crash in the late 1990s. people bought new houses with a zero-down payment to sell them for profit.
- Explains that unemployment was a large problem for many households during the great recession. the worst previous episode was in the early 1980s.
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- Analyzes how changes in the housing and labor market greatly influenced consumer spending. 71 percent of consumers purchased less expensive brands during the recession, while 15 percent increased their credit card balances to pay bills.
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- Explains that those who were able to keep their jobs also faced problems at work. some people received pay cuts, had to go on unpaid leave, and worked less hours. others switched to part-time status, leaving behind the added benefits of working full time.
- Opines that the great recession of 2007-2009 was one of the worst economic disasters since the depression. the crash in the housing market decreased the value of housing and real estate.
- Cites center on budget and policy priorities' chart book: the legacy of the great recession.
- Analyzes how the great recession has impacted the wealth and retirement of the near retirement agepopulation in the health and retirement study.
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In this essay, the author
- Explains that each recession is preceded by a period of irrational exuberance, which is part of the expansion phase of business cycle.
- Compares the labor market contraction in 2008 and 2009, which was the most dramatic of any recession since the great depression. after the early 1990s recession, it took nearly two years to salvage the lost jobs.
- Explains that in 2008 and 2009 congress implemented federally funded extensions of unemployment benefits through emergency unemployment compensation (euc08) and modifications in the extended benefits (eb) program.
- Explains that each recession is preceded by a period of irrational exuberance, which is part of the expansion phase of business cycle.
- Compares the labor market contraction in 2008 and 2009, which was the most dramatic of any recession since the great depression. after the early 1990s recession, it took nearly two years to salvage the lost jobs.
- Explains that in 2008 and 2009 congress implemented federally funded extensions of unemployment benefits through emergency unemployment compensation (euc08) and modifications in the extended benefits (eb) program.
- Explains that the federal-state unemployment insurance program provides unemployment benefits to eligible workers who are unemployed through no fault of their own.
- Explains that monthly cash benefits are paid to people who are unable to work for a year or more because of disability. there are special rules, called "work incentives," that provide continued benefits and health care coverage to help you make the transition back into work.
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In this essay, the author
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- Analyzes how michael moore's reaction to the recession was to create documentaries, roger and me, pets or meat: the return to flint, and the big one.
- Analyzes how moore targeted big tycoons such as roger smith of gm, phil knight of nike, and companies like johnson controls.
- Analyzes how large companies downsize and close and force the middle class to live below the standards they had been so accustomed to.
- Explains that poverty and downward mobility are not the only problems striking the american working class. mike lafevre shares his views on working in the steel mill during an interview with studs terkle.
- Opines that michael moore is not alone in speaking out about the rising problems facing the american middle class.
- Cites moore, michael, dir. the big one. videocassette. dog eat dog films, 1997.
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In this essay, the author
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- Opines that the american dream should be redefined in order to make it a genuine dream.
- Explains that the american dream is a concept that dates back to the seventeenth century, when people came up with hopes and aspirations for the newly discovered, unexplored continent.
- Explains that the u.s. was in a recession from december 2007 to june 2009, the longest such economic slump since the great depression in the 1930s.
- Opines that the american dream should be redefined in order to make it a genuine dream.
- Explains that the american dream was founded by those who came to this country in search of better opportunities and happiness.
- Opines that the 'american dream' is too on money rather than the more important things in life.
- States thomma, steven, and a.18. sirs issues researcher. "economic recession." facts on file news services.
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In this essay, the author
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- Argues that solutions to alleviate the impacts of the foreclosure crisis are absolutely central to the health of our financial systems and the country's economic stability.
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- Opines that they hope that obama's administration takes urgent steps in promoting practical solutions to the housing crisis and takes precautionary measures to ensure that history does not repeat.
1189 wordsRead More - Credit Cards and the Foreclosure Crisisopinion essayThe market and housing collapse happened because banks were giving out over-generous loans that were only maturing and never reimbursing the banks back and inflating housing costs, this put pressure on the banks and weakened their stock, so everything began to slowly spiral downward. As the banks felt the pressure of all these old, they had to ra...
In this essay, the author
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- Opines that the recession has given us a chance to remember that we don't need t.v. or sports to be happy.
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- Opines that the recession has given us a chance to remember that we don't need t.v. or sports to be happy.
- Opines that the cheapest and easiest way to fix the foreclosure problem would be to reset the credit industry.
- Opines that the gap between middle class and upper class has become too wide, and that we need to cater to our people as a nation to grow stronger.
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In this essay, the author
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- Explains that the making work pay refundable tax credit provided wage earners with a credit up to $400, or $800 for joint filers, for the 2009 and 2010 taxable years.
- Argues that the american recovery and reinvestment act, or arra, was the better option because it prevented the worst-case scenario of economic failure.
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- Explains the american recovery and reinvestment act of 2009: saving and creating jobs and reforming education.
- Explains encyclopedia britannica online's "the great recession of 2008–09: year in review 2009.
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In this essay, the author
- Explains that the recession of 2001 was one of the most traumatizing events in the united states of america's history.
- Explains that the y2k scare and high interest rates caused the 2001 recession, which was also during a dark period in our country's history.
- Opines that the terrorist attack on the world trade center caused a bigger epidemic than the recession of 2001.
- Explains that the recession of 2001 was one of the most traumatizing events in the united states of america's history.
- Explains that the y2k scare and high interest rates caused the 2001 recession, which was also during a dark period in our country's history.
- Opines that the terrorist attack on the world trade center caused a bigger epidemic than the recession of 2001.
- Explains that the government has many options on what they believe will be needed to get the economy back where they would like it to be.
- Analyzes how the government used discretionary fiscal policies during the recession of 2001, which were triggered by the state of the economy.
- Explains that monetary policy determines the size and rate of growth of the money supply, which in turn affects interest rates. the federal open market committee (fomc) decides on what the target overnight federal fund rate should be.
- Opines that the government's monetary policy and fiscal policies helped the economy recover and change from a recession to an expansion.
- Opines that president bush's fiscal policies, monetary policies and his decision on cutting taxes helped the economy recover from the seven-month recession.
- Opines that the president's idea of helping the people helped the economy during the 2001 recession. after the recession, the unemployment rate went back down and the real gdp started rising.
- Concludes that the recession was not as extreme until the terrorist attack, which deeply affected the united states.
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In this essay, the author
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- Analyzes how technology surges impacted the economy during the 1990s, which paralleled the industrial revolution of the eighteenth century.
- Analyzes how the 2001 recession was caused by the terrorist attacks, which froze the stock markets for four days.
- Explains that the united states of america entered its tenth recession since the end of world war ii.
- Analyzes how technology surges impacted the economy during the 1990s, which paralleled the industrial revolution of the eighteenth century.
- Analyzes how the 2001 recession was caused by the terrorist attacks, which froze the stock markets for four days.
- Explains that the recession of 2001 reminded the american public of the importance of government in society especially in the economy.
- Analyzes how ui was obstructed by political demands for business tax relief. the public infrastructure needs repair because it can serve to generate employment.
- Analyzes how the economy exceeded its maintainable growth in the late 1990s when real gdp was unsuccessful in growth and spiraled downward from 1.3 percent to.3 percent.
- Explains how the fed slashed the federal reserve's rate from 6.5 percent at the dawn of 2001 to a mere 1.75 percent by december.
- Analyzes how the september terrorist attacks only delayed the inevitable recovery of the country from the recession.
- Explains that the economy relies heavily on consumer spending, which averaged a 3.8 percent annual growth proportion before the 2001 recession began. the economy recovered quickly due to interest and inflation rates that were unchangingly low.
- Explains that the 2001 recession was a production recession which was ignited by unmaintainable market capital investment and equity.
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In this essay, the author
- Opines that the 2008 economic collapse was the final building block towards a more structural society, political system, and government in the united states of america.
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- Explains how to fix the u.s. financial crisis. scientific american global rss.
- Opines that the 2008 economic collapse was the final building block towards a more structural society, political system, and government in the united states of america.
- Explains the causes of the 2008 economic collapse, but only a few really dealt the damage. sub prime mortgages backfired on banks across the nation resulting in huge financial losses.
- Explains how to fix the u.s. financial crisis. scientific american global rss.
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599 wordsRead More - Great Depression vs. The Great Recessionanalytical essaySince being founded, America became a capitalist society. Being a capitalist society obtains luxurious benefits and rather harsh consequences if gone bad. In a capitalist society people must buy products and spend money to keep the economy balanced, but once those people stop spending money, the economy goes off balance and the nation enters a recession. Once a recession drastically takes a downturn, the nation enters what is known as a depression. In 2008 America entered a recession and its consequences were severe enough for some people, such as President Barack Obama, to compare the recent crisis to the world’s darkest economic depression in history, the Great Depression. Although the Great Depression and the Great Recession of 2008 hold similarities and differences between the stock market and government spending, political issues, lifestyle changes, and wealth distribution, the Great Depression proved far more detrimental consequences than the Recession.
In this essay, the author
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- Explains that the 1920's marked economic and social change in america. women took over men’s jobs during the war while their husbands were overseas.
- Explains how the pump and dump scheme led to overinflation of stocks and panic buying. the credit backing crumbled and more money was put up to pay the loans when stock prices decreased.
- Explains that america became a capitalist society in 2008, and compared it to the world's darkest economic depression, the great depression.
- Explains that the 1920's marked economic and social change in america. women took over men’s jobs during the war while their husbands were overseas.
- Explains how the pump and dump scheme led to overinflation of stocks and panic buying. the credit backing crumbled and more money was put up to pay the loans when stock prices decreased.
- Explains that the "great recession" focused on the housing bubble. the mortgage broker would sell the mortgage to a bank and the bank would split it into safe, okay, and risky.
- Explains how the investment groups became greedy and the banks turned back to the mortgage brokers to buy more mortgages. the increase in foreclosed houses caused the price of houses to go down.
- Analyzes how the stock market crashed and government spending differentiated between the great depression and great recession.
- Explains that government spending dropped by more than $3 billion just between 1920 and 1922. people spending money and buying raised consumerism in america which allowed the government to lowed federal spending.
- Narrates forbes magazine's "the great depression and the great recession."
- Analyzes buhle, mari j., daniel czitrom, and susan h. armitage. chapter 24: the great depression and the new deal.
- Explains gill, kathy, and about.com us politics' "what caused the great depression?"
- Analyzes harvey, john t., "the great recession: how we got here (and how to get out)." forbes.
- States that hill, ryan, "total spending us from fy 1920 to fy 1930." n.p.
- Analyzes how the great recession has changed life in america. pew research centers social demographic trends project rss.
- Explains mulligan, casey b., "who lost work during the great recession?" economix.
- Analyzes the reasons behind the 2008 recession. jonathan jarvis, john levoff and crisisofcredit.com.
- Explains the zshmoop editorial team's "politics in the great depression."
- Analyzes waggoner, john, "is today's economic crisis another great depression?" usa today.
1439 wordsRead More - The Great Recession Essayexplanatory essayWhat caused the Great Recession that lasted from December 2007 to June 2009 in the United States? The United States a country with abundance of resources from jobs, education, money and power went from one day of economic balance to the next suffering major dimensions crisis. According to the Economic Policy Institute, it all began in 2007 from the credit crisis, which resulted in an 8 trillion dollar housing bubble (n.d.). This said by Economist analysts to attributed to the collapse in the United States. Even today, strong debates continue over major issues caused by the Great Recession in part over the accommodative federal monetary and fiscal policy (Economic Policy Institute, 2013). The Great Recession of 2007 – 2009 enlarges the longest financial crisis since the Great Depression of 1929 – 1932 that damaged the economy.
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- Explains the causes of the great recession, which lasted from december 2007 to june 2009 in the united states.
- Explains the causes of the great recession, which started when the united states was given billions of dollars abroad and financiers conceiving of making a profit.
- Explains that fannie mae backed mortgage bundles called "collateralized debt obligations" to financiers, which than sold to banks, pension funds in the united states and abroad.
- Explains the causes of the great recession, which lasted from december 2007 to june 2009 in the united states.
- Explains the causes of the great recession, which started when the united states was given billions of dollars abroad and financiers conceiving of making a profit.
- Explains that fannie mae backed mortgage bundles called "collateralized debt obligations" to financiers, which than sold to banks, pension funds in the united states and abroad.
- Explains that 40 percent of all u.s. mortgages – 25 million loans were not of low quality known as subprime according to wallison & pinto.
- Explains the effects of the great recession on the u.s. labor market.
- Explains how the u.s. used fiscal and monetary policies to fight the 2008 recession.
- Explains that the u.s. economy has come a long way since june 2009 at the end of the great recession with the usage of monetary and fiscal policymakers.
- Explains the role of moral hazard in the recession and recovery.
1080 wordsRead More - Great Recession Essayexplanatory essayIn economics, a recession occurs when there is a slowdown in the spending of goods and services in the market. A recession causes a drop in employment, GDP growth, investment, as well as societal well-being. All recessions are caused by a specific cause, but the Great Recession of 2007-2009 was caused by a crash in the housing market. This crash was triggered by a steep decline in housing prices. All of a sudden, people bought houses because there was an excessive amount of money in the economy and they thought the price of houses would only increase. (Amadeo, 2012). There was a financial frenzy as the growing desire for homes expanded. People held a lot of faith in the economy and began spending irrationally on houses that they couldn’t afford. This led to overvalued estate and unsustainable mortgage debt. (McConnell, Brue, Flynn, 2012).
In this essay, the author
- Explains that recessions occur when there is a slowdown in spending of goods and services in the market. the great recession of 2007-2009 was caused by the housing market crash.
- Explains that the recession began when the 8 trillion dollar housing bubble burst. institutions bundled mortgage debt into derivatives that were sold to financial investors.
- Explains that unemployment rose during the recession and caused pessimism in american society. household spending and business spending declined because people and firms could not have sufficient money to make investments in goods and services.
- Explains that recessions occur when there is a slowdown in spending of goods and services in the market. the great recession of 2007-2009 was caused by the housing market crash.
- Explains that the recession began when the 8 trillion dollar housing bubble burst. institutions bundled mortgage debt into derivatives that were sold to financial investors.
- Explains that unemployment rose during the recession and caused pessimism in american society. household spending and business spending declined because people and firms could not have sufficient money to make investments in goods and services.
- Opines that a stable economy needs sound public finances, balanced government budget, resistance to external shocks, and stable interest rates.
- Explains that a stable economy should have low unemployment rates because it prevents an economy from going into recession. a high employment rate means more people are working and producing products that will increase productivity and gdp.
- Explains that switzerland and singapore emphasize the importance of higher education and training by leading the world in research and development, university research, and innovation.
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