By Thomas Richardson
Basic Impact of Recession
- high unemployment rates
- drop in stock market
- low wages
- increase in government spending
Cause of Recession
Usually the President or the Federal Government is held responsible for recessions. The recession was a result of the captains of the financial system neglecting the warning signs and didn't try to understand what was coming, resulting in the recession crisis.
After the 2008 recession the unemployment rate sky rocketed in 2009 and 2010. The rates were at their highest percentages in 2009 -2010.
Recessions in the US
- In the past The United States has gone through Recessions, which have lasted a few months to even a few years (Garber).
- A Crisis was reached in the U.S. when the company named Lehman Brothers failed, and there was also a collapse of the insurance giant named, American International Group or AIG ("Financial Crisis Inquiry..").
- 2005- U.S. Housing prices reached an all time high, but soon started to decline ("United States of America: History..").
- By the year 2007, many problems started to spread to broader economies, and then the nation fell under a recession ("United States of America: History..").