Essay on The Success Of The Great Recession

Essay on The Success Of The Great Recession

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The Great Recession lasted in the United States from December 2007 to June 2009, lasting about 19 months. This was the longest and worst economic recession since the great depression in the 1930’s. The main cause of it is really debatable, but it can be said it started after the attack on 9/11 when the United Sates went to war. A lot of the money the United States was using in for the war and to be used in its economy was borrowed, interest rates were high people were not borrowing money from banks, and banks did not want to take the risk of lending out money to people that had borrowed money because they didn 't want to be the next bank to close down. Banks not lending out money meant people not having money to buy things, not buying goods lead to no jobs and no jobs led to people wanting to borrow money. It was pretty much a never-ending cycle of no jobs or money. No jobs meant very high unemployment rates in the states and people started to cut back on their spending causing the housing economy to affect the recession in a big way also.
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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