The Great Recession

In the final quarter of 2008 the world economy started a period of global economic slowdown, which became known as the “Great Recession”. The situation is especially severe in the Eurozone countries. “In 2010, Greece’s GDP dropped from 235 billion euro to 230 billion euro, a 4.5% decline and the unemployment rate hit a record high of 28% in the last quarter of 2013 making it the country’s worst recession since 1974.”(Tsafos, GDP) As a result it led to a passing of a series of policies which the goal is to reduce the government budget deficit that became known as the “Austerity Measures”. Austerity measures attempt to reduce government budget deficit by increasing tax and cutting public services such as reducing the number of government employee and cutting health care. However the passing of the Austerity plan caused public outrage due to the fact that the plan had result in high unemployment rate. In order to recover from an Economic Recession both the government and its people need to have the patient to fix the issue step by step because the process of recovering from an Economic recession is long and tedious.

The European Union recession recovering process started with the forming of the European Financial stability Facility, also known as the EFSC. The EFSC was created on May 2010 by 27 member states of the European Union with the purpose of safeguarding financial stability in Europe. In a CNBC article Mark Koba states the action that the EFSF take to help improve the economic conditions in the Euro Zone: “The EFSF issues bonds or other debt instruments to provide loans to the countries who need them. The loans are guaranteed by other states in the euro zone.” (Koba, CNBC) After a nation apply for a loan the inte...

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...e end of humanity might come from the hand of natural disaster, but in fact the demise of humanity can come from our own hands. The time when people only worry about their own benefit and stop trusting each other is the beginning of an end.

Works Cited

Blodget, Henry. "IT'S OFFICIAL: Cutting Government Spending Is Hurting Our Economy ." . Business Insider, 27 Feb. 2013. Web. 9 May 2014.

Daley, Suzanne . "Greece’s Aggressive Pursuit of Tax Evaders Appears to Collect More Anger Than Money.". New York Times, 28 Oct. 2013. Web. 9 May 2014.

Koba, Mark. "EFSF: CNBC Explains." . CNBC, 20 Oct. 2011. Web. 9 May 2014.

Krugman, Paul. " The Conscience of a Liberal Why Devalue." . New York Times, 1 May 2010. Web. 9 May 2014.

"Tax Cuts." . Money Chimp, n.d. Web. 9 May 2014.

Tsafos , Nikos . "Greece’s GDP in 2010 ." . Greek Default watch, 12 Apr. 2011. Web. 9 May 2014.