The U.S. Great Recession

Abstract

This research paper is related to the great recession of 2007-2009. After the recession of 1930, this recession is considered to be the worst economic slump having long lasting impact on the economy. The recession badly affected the four main assets including business assets, values of vehicles, housing and real estate. This recession continued for 18 months. The recession caused because of the GDP growth decline and because of the implications global imbalances.

Abstractii

Introduction1

Discussion1

Major Contributing Factors Combine to Cause Recession1

People Affected By Great Recession2

Long-Term Implications2

Conclusion3

References4

The U.S. Great Recession of 2007-2009

Introduction

The United States has undergone a worst recession of its economic time in between December 2007 and June2009. According to the National Bureau of Economic Research (NBER), the recession prolonged for 18 months. This recession was the longest and the deepest economic slump for the capitalists. Major financial institutions during the recession, were on the edge of bankruptcy, and there was a sharp downturn by the fall of 2008.

The great recession in the economy caused because of the GDP growth decline, global imbalances, falling business investments, retail sales got slow, easy credit, lack of deregulations and increased rate of unemployment. Recession has a great impact on the specific population groups. . The collapse of the housing market is considered to be the actual cause of the economic crash.

Discussion

Major Contributing Factors Combine to Cause Recession

The combination of multiple and complex factors during the recession time results in crisis or causes of the recession. The main reason of these causes range from the global imbalances in the policy, market, unemployment and regulatory failures (www.cbpp.org). The principal causes include:

There was a lack of deregulation, mainly in the financial sector.

The sky-high price of crude oil and refined product causes recession in between the years 2007-2009. The inflationary tax on the production ...