The European Economic Crisis: a Global Crisis

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Mike Sasso, Kevin Kost
October 23, 2012
ENGL301-013
360* Research Paper

The European Economic Crisis: A Global Crisis
Background of Issue and Paper’s Main Points
What Caused this Crisis? One of the most important and pressing issues of our time is the economic problems gripping countries around the world, from Asia to Europe all the way back to our homes in the United States. With the world connected by technology the way it is today, crises in any corner of the globe can return to the doorsteps of American citizens who had no direct involvement with causing these crises. The economic crisis plaguing Europe right now is an interesting and alarming example of this. A large amount of Americans have no direct stake in the fate of European economies, yet the health of European economies affects economic movements in America because American financial institutions have large amounts of capital invested in countries and corporations in Europe. Between 2008, the year this crisis began, and its peak in October 2009, unemployment in the U.S. nearly doubled from about 5 percent to 10 percent (Bureau of Labor, 2012). What happened in Europe that caused this crisis? How has this and how will it affect America?
Background of the Crisis The crisis in Europe was caused by a sovereign debt crisis extending back to the introduction of the euro as currency in Europe in 1999. European economic woes cause paralyzing uncertainty amongst American financial institutions. The United States is not the only country to be affected negatively by this crisis; countries in Asia, the Middle East, and North Africa are affected too, especially the countries with less developed economies. Things bad for Europe are bad for the United States; things bad for Asia are bad for the Middle East, and are even worse for less advanced countries around the globe. In this way, the European crisis is not solely a European problem, it is a worldwide problem The European debt crisis was



Cited: and Finance 31.5 (2012): 948+. Academic OneFile. Sept. 2012. Web. 2 Oct. 2012. Review 13.3 (2012): 268+. Academic OneFile. 13 Sept. 2012. Web. 2 Oct. 2012. U.S. Bureau of Labor Statistics. “U.S. unemployment 2002-2012” data.bls.gov Oct. 2012: Web 18 Oct 2012.

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