The Recession Since World War II Essay - 1228 Words

The Great Recession period was between the end of 2007 and the middle of 2009, which makes it the lengthiest recession since World War II. The gross domestic product (GDP) fell 4.3% from its peak in the fourth quarter of 2007 to its trough in the second quarter of 2009, the largest decline in the post-war period. The rate for unemployment was 5 % at the end of 2007 and increased to 9.5% in the middle of 2009 and reached 10 % in October 2009. The credit crunch had many effects on the economy. One of the effects was home prices. Home prices fell about 30 %, on average. The pecuniary resources of US households and non-profit businesses fell from a peak of about $69 trillion in 2007 to a trough of $55 trillion in 2009. The economic crunch and recession extended, events planned to improve economic growth were implemented on a universal basis. Many other nations such as China and the UK passed economic programs that used diverse combinations of government spending and tax cuts. These databases included the Economic Stimulus Act of the year in the year 2008. The State Reserve’s response to the crunch evolved over time and took a number of non-traditional ways. Initially, the state employed â€Å"traditional† policy actions by reducing the state fund s rate from 5.25 % in September 2007 to a range of 0-0.25%in the end of the year in the year 2008, with much of the reduction occurring in January to March in the year in the year 2008 and in September to The end of in the year in the yearShow MoreRelatedOur Countries Current Economic State1254 Words   |  6 Pageswith WWII: Back in 2008, the United States endured a great recession where unemployment rates drastically dropped and value of businesses dropped drastically due to less consumer spending, making the Great Recession the worst financial set back since the Great Depression in the 1930’s. Even though it has officially ended, you can still see that our economy has not fully recovered since 2008. This makes a perfect connection to World War II because the United States was in the midst of enduring theRead MoreThe Total Budget Of The United States Essay1554 Words   |  7 PagesBeginning at World War I, spending increased six-fold to 24% of annual GDP. After the war was over, spending quickly went back down to four percent in the early to late 1920s. World War II brought yet another increase in federal spending, garnering 54% of the total GDP in the United States through the unstable economy, extra spending that had to go towards war, FDR s New Deal emerging, and the recession underway. After World War II, spending did not go down as rapidly as it did for World War I, nor didRead MoreWorld War I And The United States1353 Words   |  6 PagesMinister Winston Churchill said that the United States would be the strongest economic country in the world. In the 1950’s it had become a reality and the United States not only had a strong military but a strong economy. World War II was a staple for why the economy was up with the war going on money was needed to get the war products like planes, tanks, bullets, guns, and many other things. Also with the war going on it meant that more jobs were needed and it benefited the economy in the 50’s. When theRead MoreThe Growth And Peak Stage Of A Business Cycle1498 Words   |  6 Pagesitself. These stages are growth, peak, recession and a trough or depression. These cycles repeat themselves over and over through out time in the business world. The growth and peak stage of a business cycle are when companies are building and providing great products and services. This is also the period when jobs are most abundant and harder to fill because job positions are in demand. After the peak stage a risky point in time follows which is the recession stage. During this time people tend toRead MoreThe After World War II1671 Words   |  7 Pages In the late 2000s, major countries all across the world experienced a rapid decline in economic activity comparable to that of the Great 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 t he 2000s and continuedRead MoreEssay about Divisions of The Field of Economics1407 Words   |  6 Pagesdecision-making, macroeconomics tries to pinpoint the â€Å"when† of strategic decisions. As a member of the management team in a growing business part of your responsibilities will be to analyze economic conditions and predict recessions and recoveries based on the business cycle. If you anticipate a recession, you will probably propose cutting production and trimming inventories. You may even have to downsize the company, either by layoffs, hiring freezes, curtailing capital spending, or any combination of the three;Read MoreJohn Maynard Keynes And The Classical Model Essay1167 Words   |  5 PagesPart One John Maynard Keynes is referred to as one of the most well known economists of his time. Not only was he able to come up with a solution to essentially try to move the economy out of recession and stop booms and busts, but his theory is still being used in todays day and age 70 years later. One big question that has been asked repeatedly about Keynes theory is why did he not believe in self-adjustment of the economy. Keynes rejected the idea that market economies would automatically moveRead MoreBackground Going Into The 1970 S1169 Words   |  5 Pageseconomic burdens based off the Vietnam War and President Johnson’s Great Society. President Johnson s spending on the Vietnam War and the Great Society had boosted economic growth to 4.9%, and inflation to an alarming 4.7%. Going into the next presidency in 1968, during the start of the Nixon administration, President Nixon made a number of questionable decisions that led to the mass inflation crisis of the 1970’s. Sta gflation got its name during the 1973 - 1975 recession. There were six quarters of shrinkingRead MoreThe Recession Of A Recession1035 Words   |  5 PagesEconomical term ‘recession’ means a significant decrease in activity across the economy, which last longer than few months. This phenomenon is visible in employment, wholesale-retail trade, and others. The recession is considered a normal part of the business cycle. Nevertheless, a one-time crisis can trigger the onset of a recession. The global recession through 2007 to 2009 resulted in significant breakdowns to practically all the developed and developing countries. In order to prevent a futureRead More Milton Friedman Essay1059 Words   |  5 Pages Milton Friedman Milton Friedman is known as one of the top economists in the world. He has a Ph. D. from Columbia University, won a Noble Memorial Prize in economics and has also been awarded many honorary degrees by other Universities in the United States. As you can tell, Milton Friedman has played a significant part in helping to solve the economy problems of the world. Youve probably heard all about his accomplishments and awards he has received, but what about how Milton Friedman played