February 20 2013
United States Economic State (2007-2011)
The U.S economy is recovering from one of the longest and deepest recessions since the end of WWII. The definition of a recession is, a general slowdown in economic activity, a downturn in the business cycle, and a reduction in the amount of goods and services produced and sold. This is precisely what happened to the U.S economy from 2007-2009. For the years leading up to recession, a then booming housing market lead some to believe a recession was inmate. Since the start of the recession, the United States has tried to regain stability in its economy, and implement fiscal and monetary polices to prevent future crisis.
One of the indictors of a recession is the unemployment rate. The most recent recession was preceded by a time of steady economic growth, which was accompanied by employment growth. Prerecession unemployment rate hovered around 4-5%, which is historically and relatively low. Job growth was concentrated in three areas: education, health-care and housing related job. While education and health-care have been on a steady incline for years, the then booming housing market created most of the jobs in the housing industries. In December 2007, at the start of the recession the unemployment remained around 5 percent. By the end of the recession in 2009, that number had climbed to 9.5% and some states 10%. In September 2008, the economic downturn intensified when the economy was jolted by trouble in the nations finical system. In the aftermath of the turmoil, credit market constricted and banks tightened lending standers. The recession rapidly deepened and job losses spiked. The monthly job loses averaged 712,00 from October 2008 through March 2008. Historically, good producing industries experienced the largest decline in employment during a recession. The most recent recession followed suit, as manufacturing and constriction where of the hardest