Since people were losing jobs they didn 't have enough money to pay their mortgages but since there were no jobs they couldn 't get second mortgages to pay for their houses. Real estate housing bubbles reached a high causing people to have mortgage debt higher than what their property was worth. On average people spent most of their income on housing and expenditures. With this drop people didn 't had to cut back on this spending which lead to construction businesses dropping to about 26 percent unemployment. Mid 2009 the recovery began, people started seeing change in the economy when president Obama took chair in the white house.
It can be said the economy had been working ...
... middle of paper ...
...ies had food and shelter. The Federal government took care of it at a time that was crucial, if state government had made changes to taxes or cuts at the wrong time the amount of money lost could have been greater than we could have imagined.
There is no right way to have fixed this, and it still isn’t fixed, we are looking at years and years of work to finally bring the economy to how it was before the crash, it is definitely way better than it was at the beginning because like I mentioned before the crisis was fixed after several months of working on it, but to have a better healthier economy we must try to bring unemployment numbers to 0 percent. Which in my personal view will always have a percentage of people that do not even want to try to look for a job because that’s just how we are, lazy, we get unemployment checks and live of them for as long as we can.
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