Research Paper on the Recession of 2007-2009|
American Government 2301|
June 28, 2011
Everybody in the United Stated was affected by the recession that began in December of 2007 and spanned all the way to June 2009. Even though the recession is over, many people are still being affected by it and have still not been able to recover from the great recession. “The recent recession features the largest decline in output, consumption, and investment, and the largest increase in unemployment, of any post-war recession”. Many people lost their jobs due to the recession and some of them are still having a hard time finding jobs and getting back on their feet. Businesses also received a great downfall that forced many of them into bankruptcy. The recession not only affected lower and middle class people, it also affected upper class citizens; it affected everybody. The recession was said to be the worst recession since the Great Depression of the late 1920s and 1930s by President Barack Obama, even though there were people who disagreed on that opinion. Nonetheless, the recession of 2007-2009 was a very severe conflict that the United States had to face. Fortunately, the United States got out of it and is now trying to move up in its economy.
The recession brought an immense number of unemployment to the United States. “For a narrow majority of Americans, 55 percent, the Great Recession brought a mix of hardships, usually in combination: a spell of unemployment, missed mortgage or rent payments, shrinking paychecks and shattered household budgets”. Many of the people that experienced these hardships were young, minorities, or people with a high school education or less. Caucasians, elderly people, and the educated were less affected by the sudden change in the economy of the United States. Unemployment was very unfortunate for the people during the recession. Unemployment brought many house foreclosures, decreased leisure and activities spending, and also brought problems in the home and marriage. Since people were beginning to be left unemployed, they couldn’t pay their mortgages anymore and were getting their houses foreclosed and taken away from them. They were basically being stripped of everything they had. The decrease in income caused many families to guard their money to the maximum potential. It was no longer an option to go to the movies or the mall on the weekend. Eating in restaurants was out of the question. People had to conform to what they had and tried to spend only on the essential things. The struggle to provide for the family brought many problems to the harmony of the household. There was so much pressure that couples started having many conflicts. A study shows that divorce rates decreased during the Great Recession but that is only because divorce is so expensive. Many couples split up due to the recession because their economic problems caused them to fight and disagree on many things. Recession brought unemployment to the United States which brought many problems not just to the citizens, but to the businesses as well.
During the recession, many big and successful businesses went into bankruptcy due to such an economic downfall in the United States. According to a report released by the National Bankruptcy Research Center, personal bankruptcy filings went up 34 percent in January 2009 as compared to January 2008. The economic recession caused a dramatic bankruptcy boom that was caused by many affected companies. One of the companies that had to undergo bankruptcy was Washington Mutual. The sixth largest U.S. bank at the time, Washington Mutual became the worst failing bank in the history of the United States. WaMu listed to be in more than eight billion dollars in debt at the time they filed for bankruptcy in September of 2008. Washington Mutual was bought by JPMorgan Chase & Co. which became the biggest US bank by deposits....