The Effects of an Economic Recession - 910 Words

An economic recession is often thought of as a short term event. In reality, the effects of a recession do in fact have long lasting consequences; from decreased income rates, increases in unemployment, loss of investment and business opportunities, and much more. A job loss may force families into not being able to send their children to college. Even if these families are able to send their son or daughter to college, their experience may change during a recession. For universities to keep their doors open tuition must be increased and cuts must be made in multiple areas, such as cutting back classes, staffing, and whole departments (Irons). Real estate values fall dramatically during recessions. Being locked into a high rate mortgage for a home that is no longer worth the price these families are paying can cause major stress and depression. When a recession is considered to have ended the prices of homes will not return to their previous values instantly, it takes a vast amount o f time to see even a slight increase in property value after a recession. Every one of these examples can lead to economic scarring, which is long lasting devastation to the economy and individuals economic situations. Something as simple as a young child’s nutrition can impact cognitive development. When a child lacks basic nutrition requirements their grades, cognitive abilities, reading comprehension, and even salaries later in life will be lacking, and below the populations average. When aShow MoreRelatedEssay on Analysing the Recent Economic Recession and Its Effects1122 Words   |  5 Pagesalternation between economic downturns and economic upturns (Investopedia n.d.). A recession is an economic downturn and happens in every country and some recessions are worse than others and the output of GDP and employment are falling farther and faster. The great depression lasted from 1929-1933 and was a deep prolonged downturn in the business cycle before a recovery/expansion of the business cycle occurred and GDP and employment started to rise (Krugman Wells. 2012). The next recession lasted fromRead MoreEconomic Recession1290 Words   |  6 PagesEconomic Recession of 2007 William Mwangi Class title and section Professor’s name Due date of Assignment: 26th August 2011. William Mwangi Economic crisis Class Professor’s name 24th August, 2011. Economic Recession of 2007: What caused it and what were the after effects? Can we predict another major recession? Thesis Statement: Although the recession that dates back in 2007 is still long and deep and surely has shown some recovery, the potential that it will completelyRead MoreRelationship between Real GDP Growth and Transfer Payments Essay1101 Words   |  5 Pagesseen a consistent increase in transfer payments, regardless of the economic conditions faced by the nation. Some of this continual increase in transfer payments can be explained by demographics (Baby Boomers collecting Social Security), changes in the political climate (immigration amnesty in the 1980s) as well as the economic climate of the last decade (extended unemployment compensation). In this paper, we attempt to analyze the effect, if any, that transfer payments have had on real GDP growth inRead MoreThe Great Recession Fiscal Policy: Analyzing Problems and Solutions1429 Words   |  6 PagesGreat Recession of 2007 to 2009, the United States government implemented various fiscal policies in an effort to stimulate the e conomy. How the government responded as well as how those responses will affect the U.S. economy into the future are the focus of a proposed research study. In order to ensure an appropriate focus for the proposed research study, problems in existing literature must be evaluated. This paper is structured as follows. In order to better understand the Great Recession, theRead MoreRunning Head: Great Recession 1. Great Recession5. . .884 Words   |  4 PagesRunning head: GREAT RECESSION 1 GREAT RECESSION 5 Great Recession Name Institution Great Recession There are times when a nation undergoes economic hardship for a long or short period of time. The recession is the term used by economists to define this period, it is a time when the nation?s economic GDP is low for more than two quarters consecutively (Beckworth, 2012). Recession often results in plunges in the stock market, unemployment, housing market, and a decrease in the qualityRead MoreThe Beginning Of The Great Recession1392 Words   |  6 Pagesa. The Beginning of the Great Recession The definition of a recession is this: a significant decline in general economic activity, typically involving two consecutive quarters of decline in gross domestic product (GDP). In December of 2007, the American economy experienced an event of this nature—the Great Recession. This global financial crisis stemmed from what seemed like an isolated disturbance within the subprime US housing market but transformed into a catastrophic event. The GR officiallyRead MoreEffects Of Recession On The Employment Level1106 Words   |  5 Pages Recession is an economic phenomenon that comes in a cyclic fashion. Recessions generally occur due to an effect of adverse demand shock. Unemployment is one of the most prominent effects of recession. Due to the economic downturn, companies try to save money rather than investing it in a production process. On the other hand, the consumption power of the consumers also reduces by a significant level. These factors have a serious impact on the emp loyment level. After the recovery from the recessionRead MoreThe World s Economy Was Devastated1732 Words   |  7 Pages Assignment 4 GEOG200 Bradley Bache 3129292 Submitted September 10, 2015 In 1929, the 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 prosperRead MoreUnderstanding the Economic Recession in America Essay1165 Words   |  5 PagesThe economic recession of the late 2000s has been called the greatest economic downturn our country has faced since the Great Depression. American businesses and banks are failing, foreclosures are spreading like wildfire, and unemployment numbers have reached double digits. Under our current president, many are optimistic, but many others are fearful for the future. Economists have different speculations regarding the causes of the â€Å"Great Recession†. Some blame it on higher prices for necessitiesRead MoreThe Influence Of Two Contrasting Economic Environments On Business Activities Within A Selected Organisation1112 Words   |  5 Pages P5: Describe the influence of two contrasting economic environments on business activities within a selected organisation. Introduction In this document, I will be describing the influence of two contrasting economic environments on business activities within a selected organisation. I will be writing about supply and demand, unemployment, inflation, government policies and GDP. Step 1: Demand and Supply Demand Demand is when customers are willing to pay for a product or service at a reasonable