Economic Effects Of The Great Recession

In December 2007, the United States experienced a time of rising unemployment and declining GDP (gross domestic product) that lasted until 2009. This period was dubbed the Great Recession due to the severity of the negative impacts. The U.S. National Bureau of Economic Research defines a recession as a “period of at least two consecutive quarters of declining levels of economic activity” (Krabbenhoft), and during the time span between 2007 and 2009 GDP decreased by 3.5 percent and unemployment rate increased more than 5 percent. The gross domestic product indicates the total value of goods and services produced over a period of time, so production and consumer spending decreased drastically. The government attempted to alleviate the unemployment rate and increase economic growth by creating what’s known as a multiplier effect. The multiplier effect occurs when there is an increase in final income from the increase in spending from the initial stimulus. Consumer expenditures make up 70 percent of GDP, and

The Great Recession has been one of the largest fiscal crises of the current generation and the economic downturn that resulted has been recorded as the longest and most severe since the Great Depression ("The Impact of the Recovery Act on Economic Growth"). Although the economy has reached a stage of recovery, the effects of the recession to real GDP can be seen in business cycle figures for the period. Shown in Table1, the change to real GDP was measured at -3.9% for the recessionary period. This step into recovery was brought about by an aggressive stimulus package based on the principles of Keynesian economic theory

In our society taking hard impacts like these have big influences in our GDP. When a country is in a recession there is limited money to be distributed causing panic to business owners. Leaving them frantically trying to improve on their business and cut workers to save money. Well families suffer from the lack of monetary value and sending our unemployment rate through the roof.

The great US recession was a result of foolish decisions made in the past, which then in turn lead to a slow and painful punishment for the US economy. It was caused mainly because banks were loaning out too much money; Banks used money which they didn’t really have on paper to invest heavily into the housing market and the stock market; the debts which the citizens were creating by using large amounts of loans to pay for their daily expenses and to pay for expensive things became impossible to pay.

In 2007, the United States economy experienced a financial crisis known as the Great Recession, which affected much of the world. It officially lasted from December 2007 to June 2009 and all began with the bursting of an 8 trillion dollar housing bubble. A volatile mixture of financial market chaos -triggered by the housing bubble- and low consumer spending left millions of Americans wondering about their economic fate, the fate of their neighbors, and the fate of the nation.

There are times when a nation undergoes economic hardship for a long or short period of time. The recession is the term used by economists to define this period, it is a time when the nation?s economic GDP is low for more than two quarters consecutively (Beckworth, 2012). Recession often results in plunges in the stock market, unemployment, housing market, and a decrease in the quality of life of the citizens. The United States experienced a recession from December 2007 to June 2009 (Braude, 2013). It was the country?s greatest economic downfall for last 60 years earning the name ?The Great Recession?. During this period there

The Great Recession represented a sharp decline in the economy. This occurred during the late 2000s and has been considered the largest and most tragic decline in the economy since the Great Depression. Millions of people lost their jobs, the unemployment rate doubled, and the middle class average income took a

Just as the world has experienced economic challenges in the past, so is it today. Before the Great Depression took place in the USA in 1929,USA had witnessed 19 recessions. And we have continued to encounter economic recessions to this day, the most recent one being that of 2008 which began in the USA but also had ripple effects on the entire global economy. These economic recessions have a negative impact on the well being of human kind. For example during the period of the "Great Depression" in the USA: 12 million people lost their employment, 85 thousand businesses collapsed and a multitude of households were unable to hold their homes.

The recession is said to have started in December of 2007 and officially ended in June of 2009 (Rich, 2013). What made the Great Recession notable from other previous economic downturns in the United States besides it length was the depth of the recession. The United States’ gross domestic product (GDP) fell 4.3 percent from its peak in the fourth quarter of 2007 to its trough in the second quarter of 2009 (Rich, 2014). In addition, the unemployment rate in the United States was around 4.6 percent in 2006 and 2007 and peaked at 9.6 percent just a few years later in 2010 (U.S. Bureau of Labor Statistics,

The effects of the 2008 Financial crisis were felt globally, it being the worst financial crisis since the Great Depression of the 1930s. Suggested in the documentary Inside Job shown in class, there were many factors which led to the 2008 Financial crisis. To better understand how it happened, we have to look back to the Great Depression of the 1930s.

The 2008 so called “Great Recession” was a time that was tough on a great deal of americans as well as people all around of the world. The shock was the popping of the housing bubble. After the great burst, the financial situation of the country began to spiral out of control. Unemployment skyrocketed. Millions of Americans were laid off. The inflation rate plummeted to an extremely unhealthy amount. This was strange because the United States had recently spent decades working to lower inflation rate. They finally received what they wanted and much more. The consumer price index also eventually crashed as well. A big reason for these crashes were civilian reactions to the bursted housing bubbles. The United States took several actions to recover from the crisis. They worked at lowering mortgage interest rates and also passed the American Recovery and Reinvestment Act. They also bailed out huge failing banks like AIG. We took many actions that eventually paid off and pulled us out of the recession.

The U.S. experienced a significant economic decline in December 2007. This was the Great Recession. A recession is a huge drop in consumer spending that has a chain reaction of job lose, and lower business income. It can be caused by an economic shock. And economic shock is when products are priced more than their value. 8.8 million Jobs were lost within 2 years, February 2008-2010. Unemployment was nearly 10% in October of 2010. Since 2012, GDP and employment has made a very slow growth rate. The poverty rate increased to 12.5 % in 2007.

This recession was a combination of the United States recession, that lasted from December of 2007 to approximately June of 2009, and the global recession in 2009 that proceeded. The recession in the United States was a result of the banks’ inability to pay off their accumulated debt. It all began when there were housing booms, which involved mortgage-backed securities (MBSs), or stocks backed by mortgages. Due to the real estate market collapse in 2007, those securities declined in value and jeopardized solvency, or “the ability of a company to meet its long-term financial obligations”, of banks that were too much in debt. Though there were many major problems that resulted from the recession, the drastic increase in unemployment rates became the biggest negative effect of the economic crisis. According to the statistics from The Encyclopedia of the Great Recession, “By March 2008, 63,000 jobs were lost, the most in five years…” (Rosenberg, 599: Unemployment). During the period of decline in economy, revenues decreased and businesses stopped expanding. Moreover, when demand was too low to support the businesses, employers needed to reduce their spendings and save money by lowering wages, stop hiring new workers, and firing old ones. The Great Recession, therefore, initiated the mass discharge of employers and reduced job opportunities for immigrants who had come to

Today we are still feeling the effects of the Great Recession, as many economists call it. Our GDP has increased from almost 15 trillion dollars in 2007 to over 16 trillion dollars as of March 2015. However our national debt is over 18.3 trillion dollars and analysts project that by the year 2021 our national debt will be anywhere from 25 to 30 trillion dollars as long as analysts aren’t wrong and stay within a 40 percent margin of error. If they are wrong however, we could see the debt near 40 trillion dollars by that time. From this we already have a combined debt of 61.2 trillion dollars. This includes individual state debt, banking debt, local government debt, federal government debt, and household debt. Our largest budgeted sectors are

Have you ever wanted explore at time other than the one you lived? I choose to analyze the July 1990-March 1991 recession that lasted for 8 months. Recession can occur at any point in time and can have a number of causes. In this paper, I will talk about what caused this recession, fiscal policy, monetary policy and end with recovery and expansion.