Working Together for the Economy Essay

1084 Words 5 Pages
Throughout its history, the United States has gone through many economic cycles which involve economic peaks and recessions. With these recessions comes a time of recovery and rebuilding; jobs are lost, money in the economy does not circulate, and industries fail. However, all industries and markets must work together in order to lead the economy back to recovery and stability. Currently, the United States is undergoing a recession and signs of industries and markets working together can be seen, such as the housing and labor markets. The housing market is setting mortgage rates at record lows while the labor market is increasing employment. By stimulating consumers into the economy and generating income for consumers to spend, the housing and labor markets will assist the United States back to recovery, stability, and economic prosperity.
The United States housing market has been greatly affected by the recession because of the effects it has had on other markets and industries, such as the labor market. During the recession, the labor market had seen a dramatic increase in unemployment. Unemployment leads to consumers spending less money in the economy because of a lack of household income. Consequently, the housing market is taking a big hit. Many consumers are not willing or able to put money into the housing market to buy or rent homes; furthermore, consumers are not able to pay high mortgage rates. To generate activity in the housing market, mortgage rates are at…