The Big Picture By Award Winning Authors That Offer Great Insight Into The Reason Behind The Global Economy Crisis

In the United States, we encounter quite a bit of obstacles that we can’t seem to get rid of completely. We as a nation deal with inflation, unemployment, stagflation, recessions, depressions, and so much more. Reading these three articles opened my eyes to the world of economics, and even made me question the society we live in. I’ve learned that sometimes questions can’t be answered, and I learned that once we solve one issue, there is always another issue on its way. These articles made me analyze, and think about the future of economics, and what I can do to try and help the economy. These authors of these three articles make it very clear that there are issues in the United States, and they do an amazing job

The Great Depression was a severe economic slump down that took place between 1929 and 1939 (Sauert, 2010). Observers reckon that this historical event was the longest, demeaning, and most widespread recession. The resultant widespread economic hardship hit Europe, North America, and other industrialized economies (Olson, 2001). Also, in the 21st century, the international community has experienced yet another crisis, the Global Financial Crisis, which the observers of the global economic fora have similarly compared and contrasted with the Great Depression. The Global Financial Crisis offered itself as a case scenario that epitomes how deep the economy of the world can decline to abysmal levels.

In the Book, Pop, Why bubbles are Great for the Economy by Daniel Gross, there is an explanation of why people today do not understand the agitations and turmoil that create barriers to improving the economy. The ideas that economist hope to see in the world, are very farfetched from actuality. This world that they think of is a dream that is practically perfect in the way of allocating resources and making sure everything is done in the best possible way. However, people cannot all see the bigger picture and have faith that it will be what is good for the economy. Instead, our economy is centered over a few main points which are self-indulgence, entrepreneurship, and sometimes this can cause mayhem within the economy. Daniel explains how Americans handle our economy growing and new things coming to the public’s eye as if losing their marbles and everything crumbles from there. The book discusses different time periods that bubbles got out of hand and because of that people were hurt financially. People got hurt because the prices of different markets rose when the economy was not ready for it to raise. The different industries that the book exhibits are telegraphs, railroads, the internet, real estate, and alternative energy.

In the midst of the current economic downturn, dubbed the “Great Recession”, it is natural to look for one, singular entity or person to blame. Managers of large banks, professional investors and federal regulators have all been named as potential creators of the recession, with varying degrees of guilt. No matter who is to blame, the fallout from the mistakes that were made that led to the current crisis is clear. According to the Bureau of Labor Statistics, the current unemployment rate is 9.7%, with 9.3 million Americans out of work (Bureau of Labor Statistics). Compared to a normal economic rate of two or three percent, it is clear that the decisions of one group of people have had a profound affect on the lives of millions of

The economies of developed nations are intertwined to an extent that economic collapse of any one nation causes disruption, at the very least, in the economies of the other nations. Therefore it is vital that policy makers listen to economists who collaborate across borders to ensure not only their own economic stability, but also that of their neighbors and allies.

The recent fall of the United States economy has created a society of fear, insecurity, and doubtful investors, retirees, and consumers world-wide. Economists from around the world have come together to solve world-wide economic issues and bring stability back to businesses, households, and the government. Economics teaches you how to approach problems; it does not provide what is right or what is wrong, nor does it provide you with a definitive answer. Consistent evaluation of economic factors like unemployment, economic expectations, consumer income, and interest rates, can prove to be highly effective.

An important part of the book is the way the tone is set. The authors discuss complicated and occasionally controversial topics, but the narration uses a casual tone, which is unexpected for a book about economics. The conversational tone makes the ideas presented easier to understand for any reader. Since the book is written in a way that it feels as though the reader is being spoken to

“It ain 't what you don 't know that gets you into trouble. It 's what you know for sure that just ain 't so” – Mark Twain [1]. As children we are taught to look both ways before crossing the street because something can be approaching at either side, as adults we have yet to learn to look to the past and then back to the present to prevent ourselves from causing the same economic mistakes. It is no secret of mine, that I have the strong notion that majority of our American society is lazy when it concerns self-educating, but also blind to the destruction we may cause due to greed. I have decided after our in-session viewing of the film “The Big Short” to write my final paper on the information and effects that were portrayed by the film which was based upon the novel, “The Big Short: Inside the Doomsday Machine” by Michael Lewis. This film for many Americans was a necessary wake up call to educate themselves about the causes behind the Financial Crisis that struck our economy in 2007, and what better way to educate an over indulged lazy society than to put it in a movie with attractive actors breaking down basic financial terms into layman’s terms.

To fulfill this purpose, America's Blueprint: Great Recession 2.0 analyzes the cross-sector macroeconomic drivers and challenges of the changing global economic landscape the United States faces today. For the past sixty-five years, the United States rejected numerous opportunities to take corrective actions to prevent what we call the Great Recession 2.0. Our analysis indicates the United States and the global economy as a whole will face trying times as early as the third-week of September

The readings for the second week dealt primarily with the recession of 2008 and its implications on the global scale. The Guillen and Ontiveros chapters crafted the framework for the entirety of the topic. Chapter 2 deals with the growing instability across economies, Chapter 3 talks about the increased outreach of multinational corporations, and chapter 6 highlights the growing inequality and poverty across the world. Together, these chapters emphasize the growing complexity and entanglement of the various nations; a primary problem in the recession. With the groundwork set, the articles tackled the principle reasons for the recession (through various interdisciplinary approaches) as well as the subsequent outcomes for the global community.

The informative novel by Naroff and Scherer, “Big Picture Economics”, explains economics to the general public with personable events that unseeingly relate to the context of the new global economy. The authors discuss hot topic economical issues in a way that allows uniformed persons to learn how many events in the world, small or large, can essentially relate to the economy. An important economical issue that is discussed in multiple chapters throughout the novel is tax reform. Tax cutting is a complex topic that is often simplified by politicians attempting to expand their polls, however there is a much greater thought process when it comes to tax reform that has to be considered for a successful economic expansion.

The Global Financial Crisis is a national period of economic difficulty experienced by markets and consumers. The global financial crisis was a difficult time for businesses to flourish in the markets. In parallel, potential consumers had to reduce their purchases of goods as well as services--until the markets improved (Global Financial Crisis). Former President George Bush Jr. was the acting president during the global financial crisis. George Bush Jr. expressed that the world's major economies could overcome the financial crisis. The central bank governors from seven leading nations had agreed to a five-point plan to prevent future global turmoil (Elliot, L., Stewart, H., & Clark, A. 2008).

In order to prevent the current crisis from deepening, immediate actions are required from the major industrial countries and from the international community. There is evidence that the world economy is experiencing a major slowdown, which may deepen if inadequately managed. For example, Japan is in its worst recession since the war, much of East and South-East Asia is in depression, Russia is experiencing a major downturn, growth has stalled in Latin America, and the prices of primary commodities and a number of manufactures are falling in international markets. Authorities in the industrial countries must nonetheless continue to be alert. Several downside risks still remain, and current policies may prove insufficient to prevent the world economy from slipping into recession. Expansionary fiscal policies may be required in other industrial economies, in addition to Japan. It is also crucial that the rules of an open international trading system should operate smoothly, allowing the economies that face adjustment to reduce their deficits or generate trade surpluses with the more vigorous industrial economies.

The world economy has been fluctuating drastically in the past decade and continues to change every day. Endless debates on which economist’s theory (Classical or Hayek, and Keynesian) is right and whose is wrong regarding different aspects of the economy, such as government intervention, how the economy is driven, and who is paying for stimulus packages in the short and long term, are ongoing.

In my youth I marveled at how the influences and effects of economics are ubiquitously found in daily life; the things we buy, prices of products, and the wellbeing of governments. As the son of two business owners who planted the seeds from ground up and grew their respective businesses to what they are now, I was exposed to what a significant role economic influence plays in people 's’ lives at a young age. I distinctly remember the chaos and utter stress that engulfed my parents during the financial crisis of 2007. Although I was young, I felt the tension, the stress, the veil of hopelessness that blanketed my family. As most parents do, they tried to shield me from the realities of the situation but the truth of the matter was, the major toll it took financially and emotionally on our family was indefinitely undeniable. Ironically, the total tonnage of the impact this economic crisis had on my livelihood is what sparked a deep rooted interest in economics. Stemming from that experience, that drive led lead me to join FBLA- Future Business Leaders of America in High School which allowed me to study the roller-coaster ride of changes in the stock market, while opening my eyes to recognizing the potential constraints in the structure of our economy. The economic classes that I took exposed me to the chaotic but ironically organized nature of our economic system. It also lead me to question how my parents’ dreams were translated to reality by creating businesses that not