The Recovery From The 2008 / 09 Recession

To begin with, there are many things that cause the increase of workers working more than 50 hours. For instance, technology

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?

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

unemployed (nearly 25 percent of the workforce), and the real earnings for those still lucky

The recession of 2007-2009 played a great roll in how many companies in the United

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

The Great Recession which lasted from 2008 to 2010 is often regarded as the greatest economic crisis since the Great Depression which took place during the 1930s. The causes of both crises can be said to be similar as both lie in the actions of the federal government. While the crash of the stock market in 1929 is said to be one of the major causes and sometimes even the main cause of the Great Depression, there are also other circumstances that led to this economic crisis. Bank failures during the 1930s also added to decline in the economy. The failure of hundreds of banks caused people to lose their savings and businesses to lose their operating capital. With the crash of the stock market, there was also a reduction in purchasing in the economy (consumer demand). A reduction in consumer demand led to a reduction in production and hence a reduction in the workforce. With a reduction in production and the workforce, the unemployment rate rose drastically to around 25%. Due to the number of businesses failing, President Hoover signed into law the Smooth-Hawley tariff to help protect the failing businesses. However, this created unintended consequences as trade was stifled between America and foreign countries, further adding to America’s economic crisis.

In part, the second-rate wage growth is due to the number of employees seeking full-time employment but can only secure part-time employment. “Involuntary” part-timers increase slightly in March from 6 million to 6.1 million. This explains the high underemployment. Underemployment is derived by combining unemployment

If we look at the UK over the last 50 years there has been a huge increase in the number of jobs, which has been met by immigrants, more women working and the ‘baby boomers’, but this is unlikely to continue much longer. So moving forward the labour market may well tighten coming out of the recession, with a lack of available talent, which needs to be addressed by training or better reward programmes.

According to Union Labor Organization (2007), the quantity of part time employees has expanded from one-fourth to a half in the previous 20 years in most created nations. There are many explanations behind working part time, including the longing to do as such, having one's hours cut back by a superiors and being not able locate an all day work as full-time job.

The Great Recession began in December 2007 and officially ended in June 2009 while many macroeconomic forces were at fault, the primary cause was securitizations of debt. While debt is an important part of any economy, allowing for the financing of business activities, the purchase of homes, and continuing education, there is also an inherent risk in the system. Most debt is issued in with fixed rate interest, though during the 1970 's a new instrument was introduced to both consumers and businesses, which was variable rate loans. This instrument, allowed for introductory rates for a short time frame, then becomes a variable rate, which is normally 200 basis points above the going rate for standard fixed loans. Though a relatively new instrument, it allowed for the most recent recession to become one of the largest losses of capital in recent history, as millions of homeowners were allowed to purchase homes, which they could not afford. This was only the first mechanism, which allowed the market to collapse. Many parallel events to this recession have happened throughout recorded history. The first among them in the United States was the great panic of 1837, which had similar underpinnings as the most recent crisis.

Currently, the unemployment rate, inflation rate, and GDP growth rate are 5.8%, 1.88%, and 3.9%, respectively (Fred). The unemployment rate is higher than the full employment rate and the inflation rate is lower than the targeted 2% inflation. However, the positive GDP growth rate indicates that the economy is recovering. The current recovery is different from any other recoveries. The current recovery is a “lackluster recovery.” According to Joel Naroff, there are two reasons. The first reason is “the collapse of the housing and finance sectors” and the second reason is “domestic hiring did not occur as it had previously” (Naroff). Even though the economy recovered, “the unemployment rate was always going to fall slower,” because of the globalization of the labor supply (Naroff). During the early-1980s recovery, payrolls rose by 1.1 million and the manufacturing added 137,000 workers, in September 1983 alone (Naroff). However, this would never happen in current recovery because jobs go to both domestic and global workers (Naroff).

Part-time jobs receive many disadvantages because one of the effects on the employees can be that they will receive a lower income with less hours. In comparison, full-time employees receive a higher income with more hours. “Companies typically pay part-time employees an hourly wage and can schedule them for whatever number of hours the company desires”(“Advantages & Disadvantages of a Part-Time Employees.”). For example, full-time workers are able to work more hours, so they end up getting more money. However, part-time employees can only work a certain number of hours, so they will only receive the amount of money that they work for, which, in this case, will not be a lot. Although full-time employees require more hours, consequently, the part-time employees do not receive as large of an income as full-time employees.

The Obama administration and significantly from the media announced that the national employment report was an increase of jobs, but these missed distinction between new to part-time and full-time employment. Moreover, according to the Bureau of Labor Statistics in the past month, part-time jobs have increased from 800,000 to over 28 million. However, the rest of Americans who work at full time jobs, are happy to have that job, but they also struggling with less wages, little safety working and few benefits.

The next event in our economy will be an economic boom. The reason behind my prediction is the U.S. energy explosion, the American manufacturing renaissance, and the capital and millennial coming off the sidelines. The economic boom will happen in 2017 because of these key details.