The 1990s And Its Effects On The Economy

Americans found three ways to cope and keep spending even while wages were flattened. These three ways include: women went in to paid work in huge numbers, people worked longer hours, and people went into debt. It all began in the 1980s-1990s that women began going into paid work in large numbers. Since there were only a select few women who had four-year college degrees at that time, paid working in large numbers was the natural result of wider educational opportunities which also included new laws against gender discrimination that opened several job opportunities to well-educated women. However, majority of women who got into paid work did it mostly to help support their family incomes and households due to the stagnant wages.

Max: Hi I’m Max Lessins. This is Crash Course for economics and today we’ll be discussing the Great Recession, focusing on the fiscal and monetary policies used to recover from the 2008 economic meltdown.

Leading up to the year 1981, America had fallen into a period of “stagflation”, a portmanteau for ‘stagnant economy’ and ‘high inflation’. Characterized by high taxes, high unemployment, high interest rates, and low national spirit, America needed to look to something other than Keynesian economics to pull itself out of this low. During the election of 1980, Ronald Reagan’s campaign focused on a new stream of economic policy. His objective was to turn the economy into “a healthy, vigorous, growing economy [which would provide] equal opportunities for all Americans, with no barriers born of bigotry or discrimination.” Reagan’s policy, later known as ‘Reaganomics’, entailed a four-point plan which cut taxes, reduced government spending,

The late 1990’s into the early 2000’s was a time of great economic success that took a turn for the worst as the war against terrorism began. In America, the economy was at its peak especially on Wall Street until September 11th 2001. The attacks that occurred on September 11th deeply affected America. The attacks caused the Dow to drop tremendously along with causing the recession to deepen. America was led into of the biggest government spending periods in a long time. The cost to fund the war along with to rebuild the economy held a toll on all Americans. America had to dig itself out of a hole. Unlike the economy, technology was on the rise. Many new inventions such as wireless internet, mobile devices, and new forms of social media were created.

President Reagan achieved large part of his goals. Although he had many down falls. One of the goals that he achieved was to cut taxes for Americans. In the reading, "The Economy in the 1980's" it states, "He got 25% tax cut for individuals". Also Reagan wanted to decrease the unemployment rate and give families a higher income. On graph number two, it showed that before Reagan was president the income was rather low. While Reagan's terms went one the income slowly rose. Despite high income shown of graph three the unemployment was considerably high. In the reading, "The Economy in the 1980's" it claims that there was a recession, "The GNP is the total value of goods and services produced by a nation. More people were out of work". Another

Recession is a term that looms over any society at some point or another but what does recession mean for the economy, in short it is an economic decline. This essay will examine the meaning of recession and will discuss the fiscal and monetary policies that are used to pull economies out of recessions. The great Recession of 2008 will shed light on how these policies were successful at restoring economic growth and reducing unemployment.

Everybody in the United Stated was affected by the recession that began in December of 2007 and spanned all the way to June 2009. Even though the recession is over, many people are still being affected by it and have still not been able to recover from the great recession. “The recent recession features the largest decline in output, consumption, and investment, and the largest increase in unemployment, of any post-war recession”. Many people lost their jobs due to the recession and some of them are still having a hard time finding jobs and getting back on their feet. Businesses

Economically the United States had its highs and lows. One would have not wanted to be an American during the time period of the "Great Depression". The depression lasted from 1929-1940 and brought hard times for any family across the continent. In Midwest families who relied on farming were hit with sudden and drastic economic droughts known as The Dust Bowl. Along with the depression came unemployment and sent the United States into a tailspin. These rates of unemployment were at all time highs. These times were as hard as they get if you are American. Although they developed programs to help people in the depression rebound from

The 1980’s is one of the most interesting decades that was experienced in the United States. Dealing with the stock market, the coming up of new inventions, all the way to the types of music people listened to. During the 1980s, the only thing that made Americans be “Americans” was because of the things they were provided with. Many Americans had fun throughout the 1980s with materialistic, glamorous, and technological life styles; therefore there were different economical problems that Americans faced.

Americans then had almost everything handed to them and now the society we live in we have to work for the things we want in life, if we want a new car, then we have to have a lot of money, if we want to have an amazing career you have to have an education with work and time and effort. To have an actual career you have to start somewhere which means it can be with a low paying job and working your way up.

Ever since the Recession of 2008, the process of acquiring employment has become extremely challenging and exhausting. After months of searching, a significant amount of job seekers are willing to accept any job offers that will allow them to put food on the tables. If you follow the United States’ economic recovery, you probably know that there are about 10.5 million unemployed Americans and constant debates about how to create more jobs. What you may not know is that there are actually four million open jobs waiting to be filled. So how is it possible and who is there to blame?

Firstly, poverty brought on by the Great Depression spread throughout the country and made unemployment increase significantly. The output of crops in the Midwest significantly decreased because of the winds and dirt deposits onto the crops of the Dust Bowl. In Text 4, Franklin Delano Roosevelt states, “a host of unemployed citizens face the grim problem of existence…. Our greatest primary task is to put people to work.” The quote represents the fact that unemployment in America was in such a bad spot where the government needed to step in and help the majority of the people who were not financially stable. Another cause why American economy crashed is because employers realized that people would do anything for work and work for just about anything, so their immediate response was to lower worker’s wages so the employers made more money. It says in Text 3, “The volume of manufactured goods dropped sharply, as did the national payroll. The response was to lay off workers, slash dividends, reduce inventories, cut remaining wages, forgo improvements and reduce production.” The quote depicts economic struggles workers dealt with throughout the Great Depression and Dust Bowl. Overall, unemployment gripped the workforce of America, making it the worst economic depression America has ever been in.

On the 26th of November 2001, the National Bureau of Economic Research, declared that after ten years of economic expansion, the United States was in a recession as of March 2001 (Coplan 9). During the last quarter of 2001, the United States experienced a terrible tragedy; the 9/11 terrorist attack. However, economists believe that even if the terrorist attack had not taken place, the recession would have still been present, but it did in fact delay recovery. The recession of 2001 was by far different than all the other recessions. It was in fact, better than other recessions because the 2001 only lasted a quarter. Real GDP barley changed and the unemployment rates slightly rose (Nordhaus 2). It was found that banks have improved their performance during the recession, they were prepared for the worst this time around. During the 1990s, risk management became an important factor for banking discipline. Using risk managements, it gives the economy a potential to increase the stability. Thereby, banks benefited from an environment that rapidly declined short term interest rates, which enabled them to borrow at a lower cost (Schuermann 2). These risk managements played an important factor during the recession while impacting the United States economy in a positive manner.

The United States is currently experiencing a slow recovery from the recession of 2008-09. The current unemployment rate is 7.7%, which is the lowest level since December of 2008 (BLS, 2012). However, this rate is believed to higher than the rate that would occur if the economy was operating at peak efficiency, and it is also believed that there are structural issues still underpinning this performance. For example, the number of Americans who have exited the work force as the result of prolonged unemployment is believed to be higher than usual. In addition, the Congressional Budget Office (CBO, 2012) notes that long-term unemployment of greater than 26 weeks is at a much higher rate than normal, which will have adverse long-run effects on the economy, since workers with long-term unemployment often find their career paths derailed.

The United State economy has been affect in many ways. Unemployment is one of these ways in which the economy is affected. Manufacturing companies are taking their business else where therefore causing many to be lead off.