Understand Recessions and Recoveries

1377 Words3 Pages

Recessions and recoveries throughout the years seem harder to comprehend each time. This is because of the complex issues that must be resolved during them. The issue no longer just lies with unemployment. One must keep in mind, housing prices, taxes, demographic issues, inequality ratios and the reason for unemployment. A fix all policy is not a possibility with this recession and recovery. As we continue throughout this recovery and continue to make resolutions we must understand what the root causes are and how to avoid them in the future.
During a time of recession people try to figure out what the root cause is for unemployment. “There are now 12.8 million workers who are looking for work and cannot find it; the figure nearly doubles if you include workers who are part-time but want to be employed full-time, and workers who want to work but have stopped looking” (Rampell 1). Two options come into play these are, structural unemployment and cyclical unemployment. Structural unemployment is caused by changes in the economy like the technological revolution or moving jobs abroad. With the technological revolution, one sees a computer and one operating person taking the job of many who once did it manually. In addition, due to the scare of the recession many companies cut their pay rolls and invested in technology to insure in the future the success of their business. Businesses also moved production abroad so products could be made cheaper than in America. Structural unemployment is more challenging to fix because it require matching of people’s skills they have been trained, higher education and progress. Structural is not a permanent problem, like seen during World War II the G.I. Bill was introduced turning around the stru...

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...n the recession is hard to understand is because the diverse actions that must take place to create a solution. We can’t just recycle the same policies like the New Deal again we must be able to adjust and fit it to today society.

Works Cited

Applebaum, Binyamin. "Are the Good Times Never Coming Back?" New York Times Economix 22 Mar. 2012: n. pag. Web. 15 Feb. 2014.
Applebaum, Binyamin. "Housing Prices and Income Inequality." New York Times Economix 17 Oct. 2012: n. pag. Web.
Bartlett, Bruce. "Are the Bush Tax Cuts the Root of Our Fiscal Problem?" New York Times Ecnomix 26 July 2011: n. pag. Web.
Rampell, Catherine. "Comparing Recessions and Recoveries: Job Changes." New York Times Economix 3 Feb. 2012: n. pag. Web. 15 Feb. 2014.
Rampell, Catherine. "New York State Leads in Income Inequality." New York Times Economix 20 Sept. 2012: n. pag. Web. 15 Feb. 2014.

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