The Recession Of The United States Economy Essay - 990 Words

Inflation is at approximately 1%, which is far below the Fed’s target of 2%. Most recently, the FED’s beige book from September of 2016 reported that national economic activity is either flat or expanding gradually across the twelve Federal Reserve Districts. Most contacts across the districts expected moderate economic growth in the next few months. Labor market conditions were tight, with moderate payroll growth and moderate upward wage pressures. Prices were observed to increase slightly. Although the current statistics are insightful, I will explain my view of the longer term trends in the U.S. economy through three primary lenses: GDP growth, unemployment, and inflation. The first area I will examine is GDP growth. Since the Great Recession, the U.S. Economy has been marked by stagnant growth. On average, from 2010 to 2016, the U.S. GDP grew at 2.01%, which is 1.74% less than during previous post-recessionary expansions, a statistic which would have yielded a 13.6% higher GDP. James Stock, a Harvard economist, in an October 2016 presentation to the Federal Reserve Bank of Boston, presented findings on the causes of our slow recovery. To give you a sense of the scope of his study, Stock explored the root causes through four primary groupings of complex and interrelated possible explanations. The first group of explanations involved long-term, structural shifts in the economy and the labor market. This included, among other factors, women entering the laborShow MoreRelatedThe Recession Of The United States Economy1014 Words   |  5 PagesAs the U.S. economy continues its struggle to climb out of a deep recession, personal loans remain very difficult to secure. Having shouldered much of the blame for the financial hardships that have befallen consumers across the nation, many banks now require potential borrowers to meet strict criteria for an approval. With the financial institutions being more selective about who they assist, Detroit locals like Ashley Wright are learning that consumers with excellent credit and decent paying jobsRead MoreThe United States Economy Experienced A Recession Essay1747 Words   |à ‚  7 PagesIntroduction The United States economy experienced a recession starting in December 2007 and ending in June 2009 as reported by the National Bureau of Economic Research. The employment market was directly impacted as evidenced by the growth in unemployment rate. Employers reduced staffing to cut costs and protect profit margins. In doing so, employers combined approximately 2-3 worker’s positions into one, shifting the required skills and values into one all-encompassing position. The skills andRead MoreThe United States Economy Experienced A Recession Essay2089 Words   |  9 PagesThe United States economy experienced a recession starting in December 2007 and ending in June 2009 as reported by the National Bureau of Economic Research. (http://www.bls.gov/spotlight/2012/recession/pdf/recession_bls_spotlight.pdf) The employment market was directly impacted as evidenced by the growth in unemployment rate. Employers reduced staffing to cut costs and protect profit margins. In doing so, employers combined approximately 2-3 worker’s positions into one shifting the required skillsRead MoreThe United States Economy: Recession Policy Recommendations651 Words   |  3 PagesThe United States economy: Recession policy recommendations According to classical Keynesian theory, the best way to deal with a recession is for the government to spend at a deficit to stimulate demand. Waiting for the business cycle to rectify itself, at least during a very severe economic downturn, shows little understanding of real world economic and psychological wisdom. When people are worried about losing their jobs, they spend less and hide money under the mattress. They do not buy consumerRead MoreIs The United States Economy Doing Well Since The Great Recession? Essay962 Words   |  4 Pagesthe United States economy doing well since the Great Recession? It is, according to economic data. I base my argument on the answers to three states concerning the health of the macroeconomy. The first goal is that of full employment. Full employment is a state in the economy where virtually all who are willing and able to work are employed. The second goal focuses on economic growth, or the growth of our GDP. This is the value of all finished goods and services produced in the United States in aRead MoreThe World s Economy Was Devastated1732 Words   |  7 Pagesthe western world’s economy was devastated. With the crash of the United States Wall Street, the realm drove into what is now known as the â€Å"Great Recession†. Its neighbour to the north, Canada also felt these affects as unemployment and poverty grew. After a decade of despair, the massive rise in government spending for the Second World War and the reductions in taxes, the economies returned to prosper. With decades of industrialization, population growth and surging economies, the Western WorldRead MoreThe United States Economy And The Economy1484 Words   |  6 PagesEvery country has an economy that shows the give and go of wealth and resources between producers and consumers. Some economies are better than others; here in the United States we have been stuck in a recession, meaning our economy is declining. Even though the United Stat es economy has been in a recession for the past 8 years, its still, if not the best compared to other countries. The United States has a mixed economy made of individual producers and consumers, this economy allows the consumersRead MoreThe contemporary Great Recession and the global financial crisis1032 Words   |  5 PagesSince the advent of the subprime crisis in 2007 that it is commonly believed to have led to the Great recession and to the present global financial crisis, these issues have been subject to much research. In fact, no one can claim that the Great Recession and the global financial crisis have been under-researched. In fact, the new world recession has been analysed from different angles and perspectives. Historians, economists, financial experts, psychologists, anthropologists and other experts inRead MoreThe After World War II1671 Words   |  7 PagesGreat Depression. The United States’ real estate market collapsing and â€Å"large amounts of mortgage -backed securities and derivatives†¦[losing] significant value† (Investopedia, LLC.) caused this Great Recession. Three wealthy countries, Japan, Germany and the United States, each experienced a distinct reaction to the economic obstacles that arose during the 2000s and continued into the 2010s, thus the three countries responded in varying ways. Although Japan was once a booming economy, it did not necessarilyRead MoreEssay about 1980 s Double Dip Recession1407 Words   |  6 PagesDouble Dip Recession Overview I. Introduction The 1980-1982 Double Dip recession brings up the curiosity of how the stagflation of the seventy’s affected the early eighty’s in which it caused the Fed and the USA congress to be switching back and forth from stimulus and restraints causing us to fall to our first recession. Then not till later we will see that Paul Voucher Chairman of the Board of Governors use heavy monetary restraints to control the inflation and ending the first recession only to