Essay On Recession

Essay On The United States Recession
After I got the assignment and read what the topics were, I started doing research on all the topics
you gave us. After doing the research I decided I was most interested in the United states
recession in 2008. It also interested me in finding out what we have done, in the middle of doing,
and what we are going to do to get out of the recession. I decided to choose this topic about the US
economy and what we were and are doing to get out of the recession because I wanted to learn
more about why we went into a recession and how we are now working on how to get out of one.
I wanted to write about all the things that led up to the recession and write about what we are doing
and going to do to fix the recession. I started off by finding a lot...show more content...
The effects from the great recession made people lose jobs which didn't help the recession any, it
also made prices go up on things that people could not live without like gas, water, power, food,
oil, clothing, etc., decrease in shipping orders which is what helped all the prices rise because it
made a shortage in items that people needed to live, and the financial markets decrease greatly,
which always causes everyone to go into mass hiseriahysteria because the stock markets "crash". .
I learned that president Obama started to fix the recession by stopping the war in Iraq because it
was costing the us ten billion dollars a month. Also, he got them to stop spending fifteen million in
overpayment to Medicaid and Medicare and start working on stopping the fraud. I learned that
Baraka Obama stopped the recession. Amadeo said, "President Barack Obama outlined the
economic stimulus package during his 2008 campaign. Congress approved the $787 billion
American Recovery and Reinvestment Act in February 2009." The economic stimulus package
ended the Great Recession by spurring consumer spending. Its goal was to save between 900,000 to
2.3 million jobs. The economic stimulus plan was intended to spend $185 billion in 2009 and it
ended a four–quarter decrease in GDP by the second from last quarter in 2009. After completing
my outline, I started writing my paper. While I was writing I realized I needed to add more into the
paper. So, I done a little more research and
Get more content on HelpWriting.net

The business cycle is the short–run alternation between economic downturns and economic upturns
(Investopedia n.d.). A recession is an economic downturn and happens in every country and some
recessions are worse than others and the output of GDP and employment are falling farther and
faster. The great depression lasted from 1929–1933 and was a deep prolonged downturn in the
business cycle before a recovery/expansion of the business cycle occurred and GDP and
employment started to rise (Krugman & Wells. 2012). The nextrecession lasted from 1981–1982 and
was comparatively smaller than the first (Krugman & Wells. 2012). More recently in 2001 a slump
in the economy was noted and was followed by the great rescission of 2007–2009 (Krugman &
...show more content...
An examples of the circular cash flow model is demonstrated in figure 21–6.
"Firms produce output and then pay income to households and households then use this income to
buy goods expenditure" (Pettinger. n.d.).
Unemployment Rate & Labor Force Participation Rate Labor force is the amount of people who
are employed and currently have a job and the people who are unemployed and currently do not
have a job (Krugman & Wells. 2012). The labor force participation rate is calculated with people
sixteen years of age and older that are employed, while the unemployment rate is measured by the
percent of the total number of people sixteen years of age and older who do not have a job
(Krugman & Wells. 2012). The United States assigns the Bureau of Labor Statistics (BLS) with
the task of tracking the employment and unemployment rate of the labor force in the United
States (BOOK). The BLS breaks down the unemployment and labor rate much farther than just
how many are working and not working and breaks the cart down to race, age, gender, and level
of schooling from no high school diploma to bachelors degree and higher for the year along with
many other statistics and ways to track the populations work force (U.S. Bureau of Labor
Statistics. n.d.). The BLS breaks down the labor force also by including discouraged workers, who
are people that are not working but could work and have given

Economic Recession
Economic Recession of 2007
William Mwangi
Class title and section
Professor's name
Due date of Assignment: 26th August 2011.
William Mwangi
Economic crisis Class
Professor's name
24th August, 2011.
Economic Recession of 2007: What caused it and what were the after effects? Can we predict
another major recession?
Thesis Statement: Although the recession that dates back in 2007 is still long and deep and surely
has shown some recovery, the potential that it will completely recover is still vague.
I.Causes of the 2007 recession
A.Inflation
B.Housing Prices
C.Oil Prices
–Recovery measures
A.Cutting Production cost
i.Caused unemployment
B.Increase Interest rates by the Federal reserves
i....show more content...
Current Account Deficit," he explained that economic crisis has its background way back – a decade
ago, as the developing countries had modest trade and account deficit of which was financed by
borrowing from the rest of the world in order to invest more than save, bringing about financial crisis
i.e. they will be rich in future by constructing infrastructures but face recession in present.
Housing prices was another contributing cause to the recession. In the decade going towards
2006, housing prices spiraled up by more than 25% due to high demand, decline in lending
standards, and low interest rates in the 2000s. Between 2000 and 2006 large number of borrowers
took out mortgages as they were lured by the prevailing favorable rates. This had the effect of
fetching all and sundry including those individuals with bad credit records. The Federal Reserve
began to raise fed funds thus interest rates cropped from 1.25% to 5.25% – a reasonable level to
fight the inflation level as well as overall loans between banks. Expensive repayment on loan had the
effect of softening housing markets since borrowing was costly.
According to Bernanke, "by August 2007, nearly 16% of mortgages were in default," (qtd. In Jones
6) this explains the advancement in the problem due to low housing prices that led to defaults and
further lowered housing prices even further in a vicious cycle. In addition,

The Great Recession Essay
George Santayana, a Spanish poet and philosopher said, "Those who do not learn history are
doomed to repeat it." This quote applies to the Great Depression of 1929 and the Great Recession of
2008. There are many similarities between the two, like the causes, the actual events, and the
aftermaths. Several factors led to the Great Depression, which were the following: overproduction by
business and agriculture, unequal distribution of wealth, Americans buying less, and finally, the
stock market crash of 1929. The Great Recession also had similar factors leading to it, like the
housing "bubble" burst and less consumer spending. In both events, the Presidents enacted programs
that they believed would help the American people. In the early...show more content...
economy, people began buying stocks on the margin. They would borrow most of the stock's
price from a stockbroker and only pay a little bit of the price. If the stock prices kept rising, this
system would work well, but if the prices fell, people could not pay the loan back. Near the end of
the 1929 year, prices were too high, so people wanted to sell their stocks. They thought the prices
would lower soon. Stock prices did go lower and people were not buying. They all wanted to sell
their stocks. Prices went even lower on October 29, where 16 million stocks were sold. This caused
the collapse of the market.
Similarly, the Great Recession was due to consumer spending cutbacks and a drop in demand for
the establishment of new housing. In the two decades previous to 2008, the American growth
rate was very high. Their household needs also became very high, which made demand increase.
Spending was at a high. However personal income was decreased. The consumers then had to
borrow money from the banks. This gave the consumers debt. So, when the house prices rose,
banks stopped loaning money to people and the people decreased their spending. This happened
because the people were not able to pay the banks back. People also cut back on buying or making
new houses, so household demand dropped. Many say that this decrease caused the Great Recession.
Housing was one of the main subjects that many believe, caused the Great Recession. "Subprime"
mortgage availability and low interest

Research Paper On The Great Recession
The Great Recession
Started in December 2007, began with the bursting of an 8 trillion dollar housing bubble, this is
called the Great Recession. After 911, the economic in US trundown, in order to stimulate economic
growth, the Fed chairman decrease the interest rate, tons of money flew into market. Because of the
low interest rate, the housing prices start increasing; also, the government encouraged people buy
house for stimulate economic growth. People realized the housing prices was keep increasing, they
went to commercial bank applied for loans,eventhough, they did not need a new house. Because Fed
chairman set a low interest rate, the householder pay less money to bank than they earn from the
house, many householders got a huge profit from it....show more content...
Because of this high interest rate, the householder cannot afford the house, most of people start
selling their house, the housing market start collapse. In 2008 and 2009, the US. Labor market loss
8.4 million jobs, or 6.1% of all payroll employment. This was the most dramatic employment
contraction of any recession since the Great Depression. For the worker during the Great Recession,
loss their job means that family incomes have dropped, adults as well as children have lost health

The Recession Of A Recession
Economical term 'recession' means a significant decrease in activity across the economy, which last
longer than few months. This phenomenon is visible in employment, wholesale–retail trade, and
others. The recession is considered a normal part of the business cycle. Nevertheless, a one–time
crisis can trigger the onset of a recession. The global recession through 2007 to 2009 resulted in
significant breakdowns to practically all the developed and developing countries. In order to
prevent a future financial crisis, numerous government policies were enforced. A recession usually
last 6 to 18 months and interest rate fall to stimulate the economy. During a recession, people tend
not to spend, borrow, but to save money because of a fall in confidence. The government initiates an
expansionary fiscal policy which involves increasing stimulus government spending and cutting
taxes. However, the question is can increased stimulus spending help end the recession. The first
article, "Increased Stimulus Spending Can Help End the Recession" by Lawrence H. Summers,
argues that "for a successful economic recovery, the US government must pursue measures that
increase confidence, borrowing, and spending" (Summers 1). Summers alleges that the reason why
recession keeps on is because of lack of demand. An increase in spending to increase demand is the
cure, even though too much spending was part of a cause in recession. Summers defined a recession
as:
Recessions are times when there is too

The Great Recession Of The 2000 ' S Essay
I.Introduction
The Great Recession of the 2000's is something many of us have been affected by in some way or
form. From the real estate bubble to the acts of major firms on Wall Street–there were numerous
factors that lead to this recession. The United States Government is to blame in large for what
happened to the economy in the early part of the 2000's. Major firms such as Merrill Lynch,
Goldman Sachs, and AIG tried to used the failing economy as a huge paycheck to their CEO's,
payouts made partially by the US Government's bailouts. The government should have allocated
money to the people who were struggling, not continue to feed the "hand that bit them."
II.The Real Estate Bubble
The housing market had started to decline in 2007, after reaching peak prices in 2006. There was an
extremely high amount of subprime mortgages that had been issued in the early 2000's.
Homeowners could no longer afford to live in their homes, payments started going to default, and
foreclosures started to rise. According to The Washington Post, there were five contributing factors
to the housing market crash: low–doc loans, adjustable– rate mortgages, equity line of credit, more
money down than needed, and mortgage insurance.
Low–doc loans: a very easy loan where you do not need to show proof of income to obtain a loan.
Adjustable–rate mortgages: in simple terms, an adjustable–rate mortgage is when the interest on a
loan changes with the market. This sounds nice if the interest rate is

Growing Up From An Economic Recession
Growing up in Ghana in the early to mid–nineties was very challenging for me and most people I
came into contact with; yet provided the acumen to make sound personal and professional decisions.
Ghana was recovering from an economic recession mainly attributed to series coup d'Г©tats that
destabilized the economy and crippled most state institutions. As a result of this, the country
experienced a protracted period of serious economic decline characterized by lax financial
management, inflation rates well over 40%, extensive government involvement in the economy and
an extremely high budget deficit. These weak macroeconomic fundamentals influenced the
government's decision to implement a series of strenuous public policies; with the goal to place
Ghana back on sound economic and social footing.
I woke up one morning to prepare for school; however, I realized that the airwaves were filled with
anger. Most people in my neighborhood were glued to their radio sets, waiting impatiently on the
government to confirm the rumors, about its decision to replace the current sales tax rate with a new
one; the Value Added Tax
. Around midday, the government finally announced its decision to amend
the tax system and outlined in detail various segments of the new tax policy. Under the new tax
structure, taxes will be levied on every supply of goods and services made in Ghana, every
importation of goods into the country and the supply of any imported service. The new tax system is
meant to

Recession In America
The single greatest problem facing America today would be the threat of a Recession in the stock
market. Because if America goes in to Recession again the stock market will crash again. Then
we would not need to worry about this stupid war because we will be broke. With gas and other
items prices going up it is getting harder to live. "Prices going up and money running out" that's
what the old people used to say. It is just getting harder to live. When people in their forties were
young they could buy groceries for a week with twenty dollars, now you spend half your
paycheck. Now a days people go out every day and get fast food full of fat, they eat that garbage for
a year then they start getting fat and lazy. Next thing you now they

Great Recession Research Paper
In 2007, there was a Great Recession happened in the United States. The Great Recession was a
worst financial crisis since the Great Depression happened on 1930s. This financial crisis spread to
the whole world such as Asia, Europe, and Africa. The Great Recession caused the world economy
dramatically going to the downturn. A lot of the businesses have to bankrupt. The major reasons that
effect the Great Recession is housing bubble. Before the recession, the house market increase the
price of the house cause boom in housing, so many people going to borrow the loans from the banks
to purchase the houses. Therefore, many borrowers decide to accept high–risk debt because they
think they would able to pay off quickly. However, when the interest rates increase, the price of
housing start decrease, which cause the worst housing market crash. According to CNN Money,
...show more content...
It also happens on many businesses, because the economy is in the downturn, many business stop
purchase investment at that time. For example, people would choose repair an old car instead
purchase a new car. The consumption spending is one of the major profits in Untied States' real
GDP. Therefore, consumption spending fall, many farms or producers would not able to produce
more goods because nobody willing to buy those products. So the suppliers will choose to stop
produce goods and services. Those business start lay off workers. According to the bureau of labor
statistics, "From late–2007 through mid–2009, the economy steeply contracted and nearly 8.7
million jobs were lost. Consumer spending experienced the most severe decline since World War II."
This shows all business start cut the huge amount of the jobs, and many workers lost their jobs
caused unemployment rate go to increase. That trend push the U.S economy going get

United States Recession Summary
The current United States recession began in 2008 which greatly impacted the construction industry.
A recession occurs when a county experiences zero or negative economic growth over a period of
time. The current recession we are experiencing can be attributed to the many housing foreclosures
and excess housing inventory during this period. The housing market crash affected the entire United
States economy and caused a negative economic growth. The recession impacted the economy by
causing unemployment, low gross domestic product due to low outputs, and increased public debt.
The construction industry experienced a sharp decline in the amount of projects, resulting in many
construction companies closing. Many American's feared investing their...show more content...
The 2009 American Recovery and Reinvestment Act helped promote projects via public funds to
support construction companies. $130 billion dollars of this Act was allocated to the construction
industry to help stimulate the economy by offering public funded construction projects (Honek,
Azar, & Menassa, 2012). The government did this to keep the construction industry afloat during the
housing market crash, since many of the companies primarily did residential building and were
suffering severly. By offering public funded projects it stimiulated unemployment rates to drop and
more cash flow in the economy. The government funded projects such as transportation systems, new
government buildings, reconstruction of current government buildings, and housing

Stages During Recession
The financial crisis that caused the recession caused consumers to buckle down on their spending
habits. The three stages that was heavily influenced from the recession were consumer pre purchase
issues, purchase issues and post purchase issues. The mind of the consumer took a different
approach in how they spent their money. Many looked for bargains and the best buys on food and
product consumption. Brand names were not as important to the consumer as much as surviving the
crisis.Consumers that found that purchasing the same product at a lower price still met the basic
need of survival (Mckenzie & Schardrodsky, 2011). After the financial crisis was over in 2010 the
government took action and help increase consumer consumption by lowering

Inflation And The Great Recession
From the results, the effect inflation had on the savings, made the total price required to purchase
the car increase by nearly $2,000 in three years. The new monthly repayments increased by $51.50
per month over a three year time period. These increases due to inflation are realistic, as a three per
increase over three years isn't much.

The Great Recession officially began in December 2007 and ended in June 2009, making it the
longest recession since World War II. Some people blame it on the greed of the Wall Street bankers
and others on subprime mortgage lenders. It began with the bursting of an 8 trillion dollar housing
bubble. The subsequent loss of wealth prompted sharp reductions in consumer spending. This loss of
consumption, joined with the financial market mayhem, also led to a collapse in investment
banking. Massive job loss followed the same trend as the dwindling consumer spending and business
investment. In 2008 and 2009, the U.S. labor market lost 8.4 million occupations – the most
considerable business contraction of any recession since the Great Depression. The Great Recession
of 2008 was sparked by the housing crisis and Americans today still struggle with its effects.
Home builders responded to a false price signal in the economy –...show more content...
The Federal Reserve had began lowering interest rates from 6.5% in the late 2000, all the way
down to 1% in November of 2003 and kept it there until June of 2004. These artificially low interest
rates encouraged consumers to buy houses and builders to produce more houses. However, the low
interest rate was not an accurate reflection of the true demand for houses in the marketplace. At the
same time, Congress amended the Community Reinvestment Act, encouraging banks to offer
mortgages to lower income borrowers who would ordinarily not qualify for a loan. In addition, the
Federal Government required Fannie Mae and Freddie Mac, the now two infamous government
sponsored lenders, to provide over half their mortgages to low–income buyers, also known as
subprime mortgages. Essentially, this meant that banks and other mortgages lenders were told to
relax their lending standards, and provide mortgages to people who

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...show more
content...
The demand side policies did not prevail in completely taking out the serious impacts of the
economic downfall. During the great depression, unemployment rates skyrocketed, and businesses
crumbled. Consumer spending decreased. During the great depression, fiscal and monetary policies
were implemented by the Federal Reserve System in response to the economic decline. With the
implementation of these policies stimulus packages were also put into place in February of 2008.
The Economic Stimulus Act of 2008 contributed to over billions of dollars towards tax rebates to
families in the United States. Tax rebate checks were sent out to families both lower and
middle–class Americans. The effects of the stimulus package were significantly increasing the GDP
and lowering the unemployment and adding jobs. Another success because of the polices was the
real estate equity on housing which went up significantly (Reed, n.d.). Without these fiscal policies,
the economy would continue to decline and unemployment would be on a

Essay On The Recession
Institutions have been affected by the recession. These institutions sort new opportunities for making
profit and sustaining their activities. One type of institution that has been greatly affected is the
university institutions. These institutions have been affected, as a result, of cutbacks in terms of
funding by the state government attributed to the recession that caused economic turmoil in the
country. These cutbacks by the government affects universities countrywide resulting to them
reducing their own spending and finding alternatives that would help sustain them. Nobody State
University is one such university that has been struggling to increase its revenue (Malcolm &
McMinn, 2013).
There are several options such institutions are...show more content...
However, this might not be the case because of the fact that the price elasticity of offering university
education services has a very low elasticity of –1.2. This figure means that price changes in terms of
tuition fee would have a small effect in the overall application of student in the university. Therefore,
it would be clear to say that an increase in the tuition fee would result in small change in the level of
enrollment which would not affect the overall revenue generated by the university, and this would
rule out the hypothesis stated before (Amacher & Pate 2013).
According to findings in other institutions, that have adopted this option, the increases in tuition fees
have actually raised the enrollment level of students in those universities (Kaminer, 2014). One of
the characteristics exhibited by this move of increasing tuition fees is that the overall number of
applicants for positions in the university will go down. However, universities counter this situation
by increasing the number of enrollments from the few who have applied spots in the university.
Therefore, the number of students actually ends up being high, and the institution increases its
overall revenue. There would be cases where the revenue remains the same such as the number of
students' applicants goes really low and so the institutions would try to offset this situation by
enrolling more. The situation could worsen if the pricing is wrong where they would charge more but

2008 Recession Research Paper
The fall of the housing market that begins the recession in 2008 was in large part due to the fact
that people wanted large and expensive homes. These were homes that they could not afford.
Real–estate agents and their loan officers help manipulate the numbers for these unfortunate
individual to get bank loans from banks who would later foreclose on these homes. As the job
market begin to decline and massive layoffs resulted all across the country. Many individuals became
delinquent on more than one or more house payments after losing their employment. Mortgage
companies Lenders Country wide and Fannie Mac and others found themselves holding a massive
amount of risky home loans that could have ultimately collapsed the world banking system.

Global Economic Recession Essay
An economic recession is described as "a widespread decline in the GDP and employment and
trade lasting from six months to a year." (Word Net) The economic recession is an international
problem that has been affecting countries like the United States, China, United Kingdom and others
for over two years. The latest recession began when house prices and sales began to fall and large
drop offs in business investments started. Another causing factor of the recession was citizens with
bad credit buying houses and real–estate and mortgages not being paid. Countries began taking
action in 2008 by implementing stimulus packages and bailout plans, which can help a country
locally, federally and on a global scale. TheUnited States stimulus...show more content...
With the 2009 stimulus package, the focus shifted from bailouts and large sums of money given to
corporations, but too investing in infrastructure, health and other public services.
In the 2009 stimulus package, $111 billion was set aside for infrastructure only. This includes
federal buildings, municipal buildings, municipal recreational structures, roads and bridges and
several other areas of construction (Hossain, and Cox). Money was also invested into social
services, including education, where $53 billion has been dedicated to. This money has gone
straight into schools that need some extra funding to remain open, and to prevent cuts in staff.
This way, the level of education remains high, whereas schools closing would cause dropout rates
to be higher, and averages to be lowered. In 2009, the US government also invested $87 billion
into several States to cover Medic Aid costs (Hossain, and Cox). The government has also
investing large amounts of money to repair roads, highways, rail ways and important bridges.
Another focus for the US government is to make public transit easier to access for the public to cut
down on citizens driving to work every day.
Recently a large focus for countries in economic recession, namely the United States, has been to
begin a new green initiative. In the United States, a large amount of money has

Effects Of Recession On The United States Essay
Have you ever wanted explore at time other than the one you lived? I choose to analyze the July
1990–March 1991 recession that lasted for 8 months. Recession can occur at any point in time and
can have a number of causes. In this paper, I will talk about what caused this recession, fiscal policy,
monetary policy and end with recovery and expansion.
II.Causes of recession
There can be many causes of recession. In this case, the July 1990 through March 1991 recession
was caused by a change in both, aggregate demand and aggregate supply. One of the causes during
the recession was a decline in expectations about future income and wealth. The decline of consumer
and business confidence leads to lower expectations, which will decrease aggregate demand.
Then there was a change in factor of production prices which caused aggregate supply to change.
The second cause of the 1991 recession, was an increase in oil prices, after the Iraq invasion of
Kuwait. The input prices of oil increased, which would cause aggregate supply to decrease.
Furthermore, the Federal Reserve lowered the rate of inflation which slowed economic growth.
Lastly, after the baby boomers there was a slowing in the population growth rate.
The unemployment rate leading up to the 1991 recession was much smaller than it was during the
recession its self. In 1989 the unemployment rate stayed close to its average of 5%, with the greatest
percent being 5.4%. In 1990, it stayed about the same until the

The Economic Recession of 2008 Essay
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? First, in order to better understand the scale of the problem let's take a
closer look at the numbers. Since late 2007, nearly 8.5 million jobs were lost; in...show more
content...
Let's look at all of them and see why they do not always work. Online job search engines are not
being a lot of help these days. Oftentimes the only people you will hear back from would be
scammers and employment agencies seeking to make money on potential hires. After posting a
resume on such web sites, there is a high chance that you will receive hundreds of emails offering
work from home, or immediate job opportunity. Further research on the company will uncover
numerous complaints or scam alerts. When it comes to applying through a corporate web site,
there is one thing to be aware of: companies these days use help of automated resume scanners.
With competition being as high as it is, one job listing attracts hundreds, if not thousands of job
applications. In order to sort them out, corporations utilize special software that scans resumes for
specific key words. Even though it makes the process a lot faster and easier, the automated systems
won't necessarily recognize even the best candidate. With market being on their side, employers also
take their time when making hiring decisions; job–seekers are subjected to multiple interviews,
screening and tests. Since the process takes too long, the best candidates might move on long time
before company makes up its mind. Job

Essay On Recession

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