The Great Recession Effects

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.

TThe status of the economy when Roosevelt obtained presidency was characterized as very flawed and impaired. While President Herbert Hoover had relentlessly tried to mend the broken economy after the stock market crash of 1929 by establishing “Hoovervilles” and spending vast amounts of government money, the economy was still extremely damaged and broken.

The United States is a country that over the years has relied on its economic stability to continue providing acceptable living for its citizens and continue its leadership of the free world. This country went through an economic depression which lasted several years throughout the 1920’s and the 1940’s but successfully recovered from it after World War II. An economic boom in the 1990’s during George Clinton’s Presidency the federal budget was managed to be balanced and helped increase the economic crisis of the United States. The recovery did not last long as the United Stated went through a huge recession during George Bush’s Presidency in what many experts called the “Great Recession” which affected many especially businesses and middle class citizens. Although today many consider the recession to be over the effects of it can still be felt today specially by many middle class families like my own. I come from a small family of three which includes my parents and me. My family comes from minimum wage salaries and have been part of same line of work for many years however, the amount of necessities the family can afford has definitely changed. For example, the amount of groceries you can buy nowadays with a $20 bill is much less than those of the 1990‘s. The price of gas has certainly gone up which has caused many companies to outsource jobs or close down. My dad was laid off his dream job due to budgets cuts while my mom’s working hours have been reduced. As a result my

An economic recession occurs when the economy is suffering, and unemployment is on a rise. A drop in the stock market and a decrease in the housing market will also affect the economy due to a recession. Higher interest rates affect the economy constrain liquidly or the cash available to invest in stocks and businesses. Inflation alludes to the rise in prices of goods and services which also puts a strain on the economy further adding to a recession. Businesses were lost and consumer spending dwindled the only category that remained safe was healthcare. The economic meaning of a recession is a decline in the Gross Domestic Product (GDP) consisting of two consecutive quarters on a decline. If the economy is bad consumers are less likely to spend money on goods and service. The effects of a declining economy forced the government to create monetary

The economic downturn is considered the great depression from 1929-1941 because of the uncontrolled exertion on unlimited goods produced. Other contributions were the risky and irresponsible speculations in the stock market. Banks had invested and lost, and they were buying on margin. There was also increasingly unequal distribution of wealth. Furthermore, the U.S had weak banking systems and banks eventually failed. Finally, there was a protectionism in tariff policy. Tariffs are taxed on goods that other countries paid to trade. This is also viewed as the great depression because it was not just only U.S crisis it was a global crisis. Farmers were hit hard, lost land and could not pay their mortgages. This was the longest depression ever in U.S history that had affect tens of millions of people including businesses, farmers, the wealthy and the middle class. It was estimated that 13-15 million Americans lost their jobs, unemployment hit 25%, and 5,000 banks closed. World War 2 was significantly costly, which also had an effect on the great depression. The manufacture of materials for war such as rifles, ships, tanks and other items cost the federal government millions of the dollars which worried Americans again. Lastly, governments were destabilized everywhere.

The Great Recession inflicted abundant harm in the U.S. and global economy; 8.7 million jobs vanished (Center on Budget), 9.3 million Americans lost their homes (Kusisto), and the U.S. GDP fell below what the economy was capable to produce (Center on Budget). The financial crisis was unforeseen by millions and few predicted that the market would enter a recession. Due to the impact that the recession had, several studies have been conducted in order to determine what caused the recession and if it could have been prevented. Government intervention played a key role in the crisis by providing the bailout money that saved those “Too Big to Fail” institutions. Due to the amount of money invested in the bailout and the damage that the financial crisis had on the U.S. population, “Too Big to Fail Banks”, and financial regulation are two of the biggest focuses of the presidential candidates. Politicians might assure voters that change will occur, but is it to late for change to be efficient, are the financial institutions making the same mistakes that led to the financial crisis?

Several years ago the economy in the United States took a real turn for the worst. It was one of the biggest economical down falls in history. Many people lost their homes toforeclosure when they became unable to make their mortgage payments. There are many reasons that people suddenly became unable to make their payments. As the unemployment rate increased from 5% in December of 2007 to 10.01% in October of 2009 (Bureau of Labor Statistics) many people lost their jobs. Another cause was that people had entered into bad loans with interest only or ballooning payment loans these types of loans were very common lending practice. Then when the housing market crashed people found themselves upside down in their loans, meaning that they now owed two or three times the value of their home. These are among some of the reasons people lost their homes. Now that the economy is starting to turn around and the federal government has kept the interest rates low.Is there any hope for all these people that have lost their homes to recover and own a home again?

In the hyper competitive world of today’s mega corporations controlled by the sway of the stock market, giant old industrial era companies rule over the automobile market in the United States as well as large parts of the global automobile market. Companies such as General Motors, Chrysler, and Ford were at the center of it until the economic crisis now known as the Great Recession of the late 2000s. The whole market was declining in sales with General Motors and Chrysler taking the biggest hits while Ford only suffered decline comparable to foreign automakers’, Honda and Toyota, levels due to restructuring in prior years. However, the tipping point was edging closer to bankruptcy with General Motors and Chrysler that ultimately

Ever since World War II the United States has experienced many recessions. There have been many terrible recessions that have hit this great country hard. What is a recession people may wonder? A recession is a significant decline in activity across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income and wholesale-retail trade. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country 's gross domestic product (GDP). Although, the recession of 2001 wasn’t a dramatic and horrible recession, it was the end of the longest expansion our country had seen since WWII. The expansion following the recession of 1991 was 10 years up until this recession of 2001. Furthermore, this recession was difficult and was hard to deal with and overcome, because during the time of this recession our country experienced 9/11.

Americans' agreement that money and wealth need to be more evenly distributed reached a high point of 68% in April 2008, in the last year of the George W. Bush administration, and just before the full effects of the Great Recession began to take hold. Americans became slightly less likely to agree with the idea later that year and in surveys conducted in 2009, 2011 and 2013. This year's increase to 63% is close to the average of 62% agreement across the 13 times Gallup has asked the question since 1984. The latest data are from Gallup's April 9-12 Economy and Personal Finance

On October 29, 1929, Black Tuesday, the United States of America’s stock market crashed causing the Great Depression. The Great Depression of the 1930’s greatly impacted millions of people’s lives around the world. The Depression caused millions of people to lose their homes, jobs and food for their families. The events causing, during, and after the Great Depression will forever be an important part of American History that will never be forgotten.

In conclusion, the long-lasting results of the 2008 recession could have been far more severe. While in the moment it seemed as though the world was coming to an end as banks were and companies were folding by the week. In desperate times our government made the extremely unpopular call to bailout large banks and automobile companies through fiscal stimulus. Instead of bailing out hard working Americans. While extremely unpopular it is hard to deny the positive effects that have come from their decision. If money was not invested back into the banks the private sector would have fallen apart through time. Passing the Troubled Asset Relief Program kept the banks and automakers afloat. Through a $431 Billion stimulus package which the majority

A variety of things led up to the great recession of 2008, from a period of moderation, to a housing bubble, to a housing bubble bust. the government hasn't witnessed an economic downturn like this since the great depression. here are the main reasons why this recession happened. It all started with the moderation showed in the economy between 2000 to 2007. there was low inflation, strong economic growth, and falling unemployment. however, through all this, there was growing instability in terms of credit and financial markets. The next cause of the great recession was a housing bubble. Prices in housing quickly grew to really high prices, this was due to the high confidence and bank lending. Banks later started becoming more careless with

To answer the first question and what I can identify with is the great recession in the United States. An economic recession is considered a business cycle contraction. This is when the economy is in decline. During this time many microeconomic indicators react in similar ways such as, economic hardships, mass unemployment, investments, incomes, capital utilization and inflation all decline in a recession.

A recession is very different from a depression because a recession is when GDP is contraction for two consecutive quarters. The reason why this is called The Great Recession is because it had a significant decrease in GDP and jobs in the United States. After his first month in office, Congress gave Obama “the first legislative triumph”(Havemann). The American Recovery and Reinvestment Act was Obama’s initial response to the 2008 recession. This act “enacted a $787 billion fiscal stimulus bill that comprised $288 billion in tax cuts and $499 billion in spending”(Havemann). It was a universal truth that most countries had been failing at this time, in some cases that were much worse than America’s. “ all experienced higher unemployment, a federal