Great Recession Analysis
Macroeconomics
Project Paper
An Analysis of the Great Recession in the US
My motivation for choosing this topic came from the fact that while the Recession was beginning in 2007, I was first in basic training than subsequently in Iraq. This Recession affected many of my family members and friends negatively and me not being here for it lessens its impact and my understanding of how it affected the entire country. I was employed, never worried about a paycheck, and had very little access to the outside world so I was literally out of touch with reality for a three year period of time and to acquaint myself better with this economic period of time in the US I decided to study it. I chose to compare this period in the US to Canada …show more content…
Simply put, if a country is doing well economically then one should infer that their unemployment rate is low because if a country is booming, that means goods and services are being made and sold, but also that people have jobs producing said goods and services. Referencing the chart below, you can see that the US had the hardest time in this area in this time period. By 2010 unemployment in the US had risen to 9.6 percent, staggering if one looks back ten years to 2000 and sees and unemployment rate of 4.0 percent. Because of the Recession, when companies had to make cutbacks people lost their jobs in droves. The surprising fact that jumps out at us when we look closely at the graph is how dramatically high it became in 2010 and how much higher it was than the other countries. (BLS, 2013)
UNEMPLOYMENT RATES …show more content…
As I mentioned earlier, by 2012 the Federal Reserve Board purchased $85 billion of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short term rates near zero until unemployment drops to 6.5% or until inflation rises above 2.5%. To stabilize financial markets, in October 2008 the US Congress established a $700 billion Troubled Asset Relief Program (TARP). The government used some of these funds to purchase equity in US banks and industrial corporations (by 2011 most had been returned to the US government). By January 2009, Congress passed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years to create jobs and to help the economy recover. In July 2010, the president approved the DODD-FRANK Wall Street Reform and Consumer Protection Act, designed to promote financial stability by protecting consumers from financial abuses and improving accountability and transparency in the financial system. (CIA,
Project Paper
An Analysis of the Great Recession in the US
My motivation for choosing this topic came from the fact that while the Recession was beginning in 2007, I was first in basic training than subsequently in Iraq. This Recession affected many of my family members and friends negatively and me not being here for it lessens its impact and my understanding of how it affected the entire country. I was employed, never worried about a paycheck, and had very little access to the outside world so I was literally out of touch with reality for a three year period of time and to acquaint myself better with this economic period of time in the US I decided to study it. I chose to compare this period in the US to Canada …show more content…
Simply put, if a country is doing well economically then one should infer that their unemployment rate is low because if a country is booming, that means goods and services are being made and sold, but also that people have jobs producing said goods and services. Referencing the chart below, you can see that the US had the hardest time in this area in this time period. By 2010 unemployment in the US had risen to 9.6 percent, staggering if one looks back ten years to 2000 and sees and unemployment rate of 4.0 percent. Because of the Recession, when companies had to make cutbacks people lost their jobs in droves. The surprising fact that jumps out at us when we look closely at the graph is how dramatically high it became in 2010 and how much higher it was than the other countries. (BLS, 2013)
UNEMPLOYMENT RATES …show more content…
As I mentioned earlier, by 2012 the Federal Reserve Board purchased $85 billion of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short term rates near zero until unemployment drops to 6.5% or until inflation rises above 2.5%. To stabilize financial markets, in October 2008 the US Congress established a $700 billion Troubled Asset Relief Program (TARP). The government used some of these funds to purchase equity in US banks and industrial corporations (by 2011 most had been returned to the US government). By January 2009, Congress passed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years to create jobs and to help the economy recover. In July 2010, the president approved the DODD-FRANK Wall Street Reform and Consumer Protection Act, designed to promote financial stability by protecting consumers from financial abuses and improving accountability and transparency in the financial system. (CIA,