Richmond, Virginia's economic impacts from the recession

¶ … Richmond VA been impacted by the Recession

At issue here is the recession, and what it is doing to the town of Richmond, Virginia. Like many big cities and little towns throughout the country today, Richmond is suffering. it's difficult for people to pay their mortgages, and businesses are going under. Some of this is happening because of what are called 'intertemporal choices.' Intertemporal choices are things that have benefits and costs that are not immediate. They are spread out over time, and they are important. Often times, these are fairly common choices such as whether to have children, or which house to buy. Obviously, these are choices that have long-term implications.

Children are a lifetime investment, and a house is often a lifetime investment as well. According to the article "Intertemporal Choice" by George Loewenstein and Richard H. Thaler (1989), these choices are particularly interesting when looked at from an economic perspective. This is due to the fact that many economic theories have difficulty in testing the behavior of individuals. All human beings look at things in different ways, and because of this the predictions of what people may or may not do given a specific economic choice are often vague.

The main question in the article is whether or not people reach a level of economic stability that has some equilibrium. It was the authors' desire to know how interest rates, length of loan terms, and other economic factors affect each individual's choice to buy specific items or save their money and wait until they felt they were getting a better deal. This question is significant because the economy as a whole is affected by what individuals do with their money.

In other words, if the economy is in a recession like the one we have now many people are hanging onto their money, and therefore businesses and others who rely on consumer spending look for ways to encourage individuals to part with their money. This was largely the reason why many car companies began to offer 0% financing, and why interest rates for important long-term investments such as home loans came down so drastically. It was an effort to stimulate consumer spending, and thus boost the economy. One only has to look at offers such as the ones made by car companies and lending institutions to see the significance of the question.

In order to study this particular research question, the authors looked at many different factors such as the return that people could get on their investments, whether or not spending money and saving money were in a state of equilibrium, and the effect that interest rates and the value of bonds have on consumer spending. They even examined whether or not the interest rates that consumers could receive were more important to then the length of the loan, or whether the reverse was true.

In order to determine the answer to the main research question of equilibrium, the authors presented evidence to show that lenders tended to offer fewer loans when interest rates were lower, consumers tended to invest more when the return on investment was greater, and expectations of what could be made in the future tended to cause consumers to invest more money. However, these same consumers also like to know that they will get a good return on their investment in the short-term as well, since consumers often do not like to leave large sums of money locked up for a long period of time, in case they would need this money for something else.

From what the authors conclude, it seems as though the answer to their question is that equilibrium is often reached. This does not necessarily mean that each individual consumer will reach a specific state of equilibrium between what they spend at what they save, for example. As for the economy as a whole, however, equilibrium is eventually reached, even if interest rates must come down for consumers to start spending money again, or if consumer spending is so heavy that interest rates can be safely raised without causing alarm. Whatever the case, the economy will always return in time to a natural state of equilibrium, and this is largely because of the intertemporal choices made by both consumers and businesses. This state of equilibrium, however, may take some time to reach. During the time that individuals are waiting for that equilibrium state, there may be ensuing panic and other serious problems, which is what is generally being seen throughout the country today.

Objective Statement

The objective of this particular study is to determine what the impact of the recession has been on Richmond, Virginia. The way to do that will be through a study of the statistics that are specific to that area, and also through a study of the people of that area and whether they feel as though they have been impacted by the recession and in what way. The examination of both of these things is critically important in order to make a thorough determination of whether Richmond is seeing serious recession impacts and how, specifically, it is being affected. The study will address these issues in the context of the overall recession that is gripping this country and the world today.

Scope and Limitation of the Study

The scope of this particular study is broad in the sense that there is much that is being written about the recession today. However, it narrows significantly when it comes to looking only at Richmond instead of the entire country. The problems of recession are serious, and they include homelessness, loss of employment, and an overall slowing of the economy. They also include problems with other countries when it comes to imports and exports, and people become discouraged, frightened, and hopeless. This leads to alcoholism, mental illness, and other difficulties.

Richmond, VA has been specifically impacted by the recession. In one year, with data ending in April of 2008, employment growth slowed in the state by one-half of one percent (the Housing Recession, 2008). Home sales also dropped by 15% in 2007, and home prices fell as well, which is something that they had not done in thirteen years (the Housing Recession, 2008). Building permits for single-family homes were on the decline, and job growth in the construction industry and others in projected to continue to decline (the Housing Recession, 2008). It looks as though Richmond and the rest of Virginia are easily joining the rest of the nation in serious economic problems.

The good news for Virginia, however, is that the state is lower in the number of foreclosures than many states, with only 6.7 foreclosures for every 10,000 people in the state (the Housing Recession, 2008). Employment overall also grew slightly in some areas, but technology industries lost out. Since many of these companies pay wages that are higher than average, that loss hurt the city of Richmond and the state of Virginia as a whole. In 2007, Richmond had the best wage and salary growth of any of the metro areas in the state, but the entire state is now trending downward, just like the rest of the nation (the Housing Recession, 2008). Essentially, everything that is being seen throughout the United States is being seen in Richmond, VA, as well. Even large, metro areas that previously had a lot to offer to both residents and visitors are struggling to keep their businesses afloat in these tough economic times.

Limitations of the study include the fact that there is not that much specific info on Richmond, as most studies are either geared toward the United States or toward the Commonwealth of Virginia as a whole. Another limitation is that the recommendations that are addressed here might not be applicable to other cities and states because every place is unique. What could be done for Richmond, VA, might not work in Phoenix, AZ, Seattle, WA, or Atlanta, GA, for example.

Current Trends to Correct the Problem and Recommendations of Same

There are certainly other cities that have gone through - and are going through now - similar problems. It is also true that recessions have taken place and have had to be addressed in the past. With this being the case, past history can be looked at to help determine what should be done now and in the future so that the recession does not remain prolonged. In the spirit of that, there are several questions that can be asked and answered to shed greater light on where things stand at this moment.

What is the government doing to help the economy? The government is doing something unprecedented in the wake of the current recession. They are lowering interest rates, and actively using their fiscal policy to try to control the extent of recession that the country falls into. Usually, all attempts at stimulating the economy through the use of fiscal policy have been resisted, but this year is different. It was likely due to the September 11, 2001 attacks that the fiscal policy was used in the past, but the collapse of some of the larger banks and the collapse of the housing market are the reasons for the extreme measures that are being discussed today. Dropping the interest rates and doing other things to make consumers breathe a little easier when they make a purchase shows that the country is pulling together, which is something that the recession is teaching almost everyone in America - that people are all alike in many ways, and they need to help each other out as much as possible.

Is the fiscal policy maneuvering a good idea? Many people think that using fiscal policy is not a good idea to try to stimulate the economy. The reason for this is that fiscal policy has a built-in system of checks and balances. For example, when the unemployment rate rises, the amount paid out in unemployment benefits also rises. It is just the way the system works. Many think that people mess with that system at their own peril. The concern is that the whole thing will get out of balance because of something the treasury department or another government department has done about the interest rate or some other aspect of fiscal policy, such as the current bailout bill, and it will be more time-consuming for the government and costly for the American people to fix it.

What is lag time and why does it matter? When the fiscal policy is adjusted, there is often a period of time between when the changes are made and when the economy starts going back up. Since most recessions are short anyway, there is generally not much time difference in having the lag time or just waiting patiently for the recession to be over. With the current recession, however, this may not be the case. There are many serious problems in the country today, and this recession is the most severe recession that has been seen in many years. Many people are likening it to the great depression, especially if it continues to get worse - which most people believe it will. In the case of recession and economic problems today, lag time may still be preferable to simply waiting it out.

What started our current economic problems? The amount of easy credit that the central bank was giving out in the 1990s largely contributed to the problems with the economy today. The credit helped to sustain the rise of the stock market for a very long time. The problem was, the stock market was like a bubble, and when it finally burst, it made a real mess. If the central bank had not been so free with credit, the stock market would not have risen so high, but it would not have collapsed so hard, either. Another serious problem with the economy was the sub-prime housing market. Many, many people were allowed to buy homes that they really could not afford, and they bought them with 100% financing and interest rates that were very low but would rise later. They had variable-rate mortgages, balloon mortgages, and other ways of purchasing homes, such as loans where they paid the interest only. None of these were good, and they all contributed to so many people losing their homes today.

Does low inflation really give financial stability? Apparently not. It was thought that was the case, but after the problems with the stock market, it seems that low inflation rates really have little to do with any kind of financial stability. It is possible that low inflation may even make people feel overconfident about their financial future, much the way they did about the housing market. If this happens, they will likely spread themselves too thin and really be in trouble when the inflation rate starts to go up again and they find that they have no money. This has already taken place and is being seen right now in the current recession.

How can another economic recession be prevented? One of the best ways to prevent another recession is to make sure that the central bank does not give out credit easily, and that other banks do not, either. People should live within their means, and businesses and the government should do the same. The fluctuations in the economy from the easy credit and the partial collapse of the stock market and the housing market contributed to the recession, and the only way to stop it from happening again is to avoid the factors that caused it in the first place. This will also go a long way toward repairing the current problems and pulling the country out of the recession that it is in right now.

There will always be some amount of economic fluctuation, but the severity of the current cycle is not something that investors and others who deal with the stock market want to repeat. The same is true of those who work primarily in the housing market, because they have lost a lot of money as well. When the stock market or housing market is doing well, lenders often underestimate the risks to themselves. When the stock market or housing market does poorly, they overestimate the risks and see it as being more severe than it really is. Because of this, the economy cycles harder than it needs to, and it takes everyone along for the ride. This will never be completely removed from the economic growth and development of a country or a world, but it can be moderated.

Chapter II: Literature Review

Reviewing the literature is a very important part of any study. Without doing so, what has taken place in the past cannot fully be understood, and therefore what needs to be done now and in the future is often avoided and not well-grasped from a conceptual point-of-view. Looked at here will be some recessional issues from the past such as the impact that the Federal Reserve has on monetary policy, how the Asian Financial Crisis affected the United States, and what kinds of impacts recessions have on people from a social standpoint. How other cities and states have addressed recession and recovered from it is also important from the standpoint of helping Richmond, VA.

The Federal Reserve monetary policy is made by the Federal Open Market Committee. For much of 2003, the Federal Reserve was concerned about the economy because growth was very sluggish and uneven, although not as poor as it is now. However, during the last part of 2003 and the first part of 2004, improvements were seen as the economy began to grow at a more rapid rate. Early in 2003 the growth was sluggish for several reasons, but the most serious one was the threat of war with Iraq (Board, 2004). This slowed down growth not only in the United States but overseas as well.

When tax cuts became effective in the middle of the year and the inflation rate continued to decline, people became more optimistic in general and were willing to spend a little bit more of their money. In addition to that, businesses began to hire more workers again, although there was still a severe shortage of good-paying jobs in the country (Board, 2004). The state of the economy during that time indicated that it was beginning to recover from the terrorist attacks, the war in Iraq, and all of the other issues that caused so much difficulty for it (Board, 2004). However, it was still weak, and it was seen as likely that it would be quite some time before America returned to the booming economy that it once had. This became even more apparent recently when the housing market collapsed and the stock market began to fall.

Both inflation and recession are issues for the Federal Reserve, and it seems that the Reserve is worried about both of these things, although not equally. Inflation is a concern because of things such as rising gas prices (Board, 2004). They continued to be worrisome for many and they continued to rise despite protests, complaints, and suggestions as to how they could be lowered. Some states discussed removing a.10 a gallon gas tax for one month over the summer to encourage travel. However, gas prices had risen so high that.10 a gallon might not make a great deal of difference to many. The rising gas prices created inflation in other ways as well. Because it was more expensive to transport good across the country and to provide services that required fuel, such as lawn care, prices on almost everything went up (Board, 2004). The gas prices have since come down but the diesel prices are still up, and that means that the costs of everything else like food and clothing has stayed high, as well.

Inflation was still not too high, but the largest concern was that the country might go into a recession because many could not afford the rising prices (Board, 2004). A recession coupled with high rates of inflation would be one of the worst things that could happen to the economy of a country, and it is clear that the recession is here now. The Federal Reserve was also concerned about international trade and exchange rates, as these all affected how the country operates (Board, 2004). America is so large, and it imports many things from other countries and exports many other things to countries all across the world. Because of this, much of the American economy depends on others. Even though the Federal Reserve cannot control what other countries do, the amount of import and export, as well as what kind of exchange rate is being seen on American money, still affects the economy of this country in serious ways (Board, 2004).

The Federal Reserve is currently basing its economic policy on brisk expansion throughout 2008 and beyond, but the recession that the country has fallen into is certainly affecting that. The Reserve saw the Gross Domestic Product (GDP) rising by around 5% in 2004, and that was a significant gain (Board, 2004). The rate of unemployment was also expected to drop to around 5 1/4% by the last three months of that year, which would further work to strengthen the economy (Board, 2004). Inflation was also expected to remain very low for the rest of that year, and all of these things pointed toward an economy that would be experiencing a very strong and stable rate of growth.

This lead to an increased productivity in the business sector, which in turn lead to even more jobs. This was significant, as new jobs are what many Americans feel is most important today, and they felt that way in 2004, as well. The Federal Reserve was working to manage the economy grow by keeping inflation down as much as possible, and by keeping interest rates very low (Board, 2004). They considered raising them, but decided to leave them where they are, which helped to reassure those who were concerned about interest rates being on the rise. At this point, however, it is easy to see that a recession came about regardless of what the Federal Reserve has tried to do. The Federal Reserve, however, is not the only area to examine when it comes to problems with the economy and recessions of the past. The Asian Financial Crisis is another area of interest.

When the Asian Crisis hit in 1997 and carried through to the early part of 1999, the Asian countries were not the only ones who suffered. Naturally the crisis was most devastating to the people and the businesses that live and work in countries like Japan and Korea, but overseas, the Western nations were affected as well. The United States was hit hard because many of the technology and agriculture imports that the U.S. was used to receiving from Asian countries weren't arriving. They also experienced problems with exports, since they were used to sending a great deal of the grain grown by farmers in the Midwest over to Asian countries. While Asia obviously suffered much more than the U.S., the impact of the Asian Crisis was felt around the world.

The purpose of this section of the paper is to provide a brief understanding of the Asian Crisis, the countries that were chiefly involved and affected, and how the Asian Crisis affected the economic relationship that these countries have with the U.S. The Asian Crisis is not a simple affair, and there is not room here to go into everything that happened during it, nor is there need to, but an effort will be made to point out some of the main things that happened during the crisis where the United States is concerned.

The United States was impacted in two very different ways by the Asian economic crisis. Both imports and exports fell when the Asian countries began to have economic difficulties and the Thai dollar was devalued in 1997. Wheat, cattle, and hog prices went down, as did the estimates of farmer's net cash income for 1998 (McLaughlin, 1998). The declines in the net incomes of U.S. farmers meant that they were experiencing roughly the same degree of economic hardship that had befallen the farmers in Indonesia, Thailand, and South Korea, among other countries.

Knowing that other farmers in other countries were experiencing the same problems did little to make the United States farmers feel any better, however. Most of them were not making much money, and some crop prices had fallen below the break-even point. While some farmers still made money, the ones that commonly shipped a lot of their produce overseas did not fair very well at all. Some of the farmers sold out and found other avenues to pursue to make money. Some held on in the hopes that things would get better if they just waited a while and continued doing what they had always done.

The ones that could afford to hold on for a while ended up surviving the Asian Crisis and learning a lot from it, but the ones who could barely keep their heads above water during good times quickly went under if they failed to sell out and get out of farming quickly enough. While the farmers in the United States were having a hard time exporting, many other countries were frustrated because they did not have enough money to import the American goods that they were used to.

Japan is the single largest purchaser for U.S. crops, and a full one-half of all of the soybeans and corn grown in the U.S. goes to Asian countries. In July of 1997, when the Asian Crisis began with the devaluation of Thai currency, it not only seriously wounded the purchasing power of consumers in Asia, but it also deeply hurt the market for U.S. farmers, since so much of what they grow goes to the Asian markets. Corn and soybean crops dropped below the break-even point for farmers in the mid-west, and U.S. wheat prices were down 36% farther in 1998 than they were in 1996 (McLaughlin, 1998).

Very little of the corn and soybeans were shipped overseas, leaving farmers with too much produce, too little money, and no way to make a sale or trade that would change that. Farmers were stuck with what they grew, and many crops went to waste for want of a purchaser. Many farmers had trouble paying their bills because of the Asian Crisis, and some even filed bankruptcy and went out of business (Moseley, 2002).

The computer industry was hit hard in the United States, too. Many people were laid off because the markets in Asia were lost. There were cutbacks and plant closings everywhere, especially in the semiconductor, electronic, and computer industries, which were hit hard along with the farmers (McLaughlin, 1998). Many computer components come from Asia, but with the collapse of their economic system, very little were being exported. Because the parts were not coming to the U.S. from overseas, the people in the U.S. that put the components together were left out of work. There was simply nothing for them to do without the parts they needed, so they had to be laid off and plants had to be shut down.

Lately, there have been many discussions of how to stimulate the economy. Many individuals have their own ideas about how this should be done, but tax cuts are something that has been mentioned by almost all of those who propose the stimulus packages. Congress is being asked to deal with a great many packages, and they are actually very similar in most of what they desire to do for the people of this country. In addition to all of the packages that are being passed around in various states, several senators have seen fit to create their own packages. Of course, the President-Elect also has his own economic stimulus package that he would like to see pass through Congress so that the people can receive some of its benefits, and the bailout was recently passed but money from it has not yet been distributed.

Senator Max Baucus proposed a plan several years ago when there were economic problems that would have given money to states with no restrictions on how they spend it, extend unemployment insurance, provide breaks for small businesses, and allow for no taxes at all on the first $3,000 in wages, among other things (Baucus, 2002). This was in contrast to the plan that President Bush proposed, which would give tax breaks, but now allow any part of the wages to go untaxed. It would also have made the tax breaks that have already occurred permanent, as well as eliminating the death tax. Bush also promised to investigate and punish corporate fraud, so that investors and employees who dealt with and worked for companies who were fraudulent would not be so painfully punished financially (Bush, 2003).

Both of these plans were on the supply side. Americans were not demanding lower taxes, although many would like them. Instead, the government was supplying those things to the people in an effort to stimulate economic growth and development for individuals and businesses across the country. While it mattered somewhat which plan got adopted and passed into law, it would not significantly change the country no matter which plan made it into law. It was clearly not enough to prevent the recession that the country is in today.

There were not enough extreme differences in the plans that were considered during the Bush presidency to have brought about significant changes for many people, and most of the people who were extremely low income were not actually helped much by any of the plans that were being discussed. These were the people who most need the help, but most of the economic stimulus packages that have been advanced in the past focused on those who made more money.

It was recommended by many that none of the plans that were discussed during that time frame be adopted, as they did not do enough for those who really needed it. The same is generally true with the plans and ideas that are being addressed today. What is needed in this country is some way to help the sick, weak, and elderly who are becoming increasingly large parts of society. Many people are on welfare, and while some do not want to work, many cannot find jobs that pay more than their government check. Education is needed, and so is low-cost health insurance, as the number of uninsured in this country continues to rise.

Underprivileged individuals and small-business owners are taking the brunt of the economic problems, yet there is no plan out there that really helps them. Most of these plans help those who are already more fortunate than most; people who can already pay their taxes and afford their health insurance premiums. These are not the people who truly need the help that many of the economic stimulus packages profess to provide. They are simply the ones who will spend the most money.

Homelessness and poverty are also being seen as serious concerns with the growing recession. Within the United States, homelessness is loosely defined as the lack of a dwelling or structure in which to live. People who are seen as homeless are also often unemployed, and many of them have disabilities and/or have other problems and struggles with drugs or alcohol. The number of homeless people in this country is growing, as well, because the recession is becoming so severe that a lot of people cannot pay their mortgages any longer.

So what can be done to help with the homeless problem in society? Economic changes are clearly one of the things that are needed, as well as a good plan that will get more people working and lower the homelessness rate, which would then ease the burden on other working people. Political responsibility is also going to be necessary. Public policy needs to stop and take into account all of the burdens of homelessness that are not able to be measured by a bank account, and some of these are areas where other people can play a large role. These measures need to be taken in order to help the problems that come with being out of work for a long period of time, such as poor physical and mental health, and a lowered sense of self-esteem, as well as the financial issues. Some of this can be taken care of through social work and nursing programs and ways that people who are homeless can get the help that they really need.

In addition to these issues, leadership is highly important. The only way that these changes can be made is through having strong leadership from people who are really interested in helping their country change and become better. The election appears to have brought this, but only time will really tell that, and it is not something that can happen overnight. It is also not something that one person can do alone. It must be a team effort. Expanding the job market in this country, for example, would be one of the most important things that could be done to help alleviate the inequality that is seen in society. Not only would it benefit the younger homeless people who are still looking for work, but it would also help to find jobs for older people who were forced to retire too early and are now at least somewhat dependent on the government for financial assistance. Some of these people can also end up losing their homes if they are out of a job too long and cannot pay their bills.

The main issue addressed here, though, is homelessness and the social problems that it often creates, because homelessness is not just bad from the financial perspective. It can cause a lot of other problems as well, and getting a new job might not be enough to fix some of those problems. Social exclusion and a loss of some of the freedoms that come along with having a job and money to spend is only one of the things that is caused by homelessness. Another problem is the long-term damage to skills that were once used often in school or out in the job market. People who do not use skills that they have acquired often find themselves forgetting how to do them, at least in the short-term, and this causes the homeless person to have even greater difficulty in finding employment after long periods of going without it (Danser & Laub, 1981). Mental and emotional turmoil can be very strong at that point.

Some of the other problems that are caused by homelessness include some psychological harm, poor health, having a lack of motivation, seeing a loss of family life, and struggling with both racial and gender inequality. The psychological harm comes from a perception that someone who is not able to find work must not be good for anything else, either (Danser & Laub, 1981). It can destroy the lives of homeless people and turn them to alcoholism, to suicide, and toward other problems as well. Racial and gender inequality, though, is one of the largest problems when it comes to homelessness. Ethnic tensions increase, also, when many whites have jobs while many black people have been turned down for those jobs. It adds to intolerance when it comes to people of other races and can also cause problems with gender issues, which can be very destructive to society as a whole. Recession can be a strong contributing factor to all of these kinds of problems.

The list of concerns over homelessness is a long one. It is very important to touch on only the main concerns here, because these are the ones that are felt more strongly and that are seen more strongly in a recession. The first of these is the fiscal burden that is created by the high homelessness rate in this country today (Hale, 1991). When people are unemployed for a long period of time, there is a tremendous waste of the productive power that they could have otherwise offered. The potential national output is not being realized in a country where a large number of the people who could be working are not doing so. It also hurts other people, since the homeless and their families often have to live off of the state and/or off of handouts from other people (Hale, 1991). This takes many of the most valuable resources away from other people, and also away from the national output.

Another concern with this issue is the loss of freedom that being homeless creates. Some people who are homeless are socially excluded from many of the activities that they had previously enjoyed because they do not have money or status to continue to participate (Hale, 1991). People who lack solid employment are often ridiculed or they are judged as being lazy, and this helps to push them even farther away from the rest of society. It causes a strong loss of freedom not just for the homeless person but for his or her family as well.

A third concern is the idea of the psychological harm that being out of work and having nowhere to live can often cause. Not only do these people run the risk of forgetting how to do their work well and deal with other people, they can also become very depressed and even suicidal. It is not just a coincidence that suicide rates are higher among people who are not gainfully employed (Hale, 1991). The economic hardships that they face every day are part of the reason that they become depressed, but that depression also comes from having low self-esteem and feelings of worthlessness. This usually comes into play if they have to rely on any kind of handouts to pay their way for a long period of time.

Also important to address is the loss of any motivation that comes with being out of work for a long period of time. The longer someone is left unemployed, the more they start to feel like they will never find any work, and the more they try to avoid looking for a new job. When this occurs, people sometimes become scared by the prospect of working (Hale, 1991). This can bring about a lot of feelings like being unable to cope in a working environment after so many months or years of being out of work. It also weakens the line between those people who are 'in the labor force but unemployed' and those who are 'out of the labor force.'

Loss of social values and responsibilities that a person once held is another problem for those who are unemployed and homeless (Hale, 1991). Some people who spend a very long time living with homelessness may then develop a very cynical attitude toward society and the way they perceive it to be choosing who gets certain jobs. Younger people, certainly, who are homeless for a long period of time usually have a higher crime rate than those people who have jobs. This could come about for several reasons: a need for money, a need for other necessities like food and a warm place to sleep, anger at what they perceive as 'the system,' and a lot of other issues that most homeless people face (Hale, 1991). In other words, while it is actually realistic to assume that some of this comes from having a strong sense of material deprivation, some also comes from having a psychological influence. These people, they feel rejected and very angry at a society who they feel would not help them at all, and they feel the need for retaliation.

The crime rate that can be affected by the homelessness population is likely to be the most severe and important of the issues to address, at least from the perspective of society. There are a lot of social theories about human behavior and why people do the things that they do (Brenner, 1978; Becker, 1968). A lot of these could also be considered quite seriously when looking at this issue. This could create a new consideration for theories regarding behavior or serve to reinforce those that already exist, depending on what is discovered.

It is likely that some of the people who are homeless would never commit any kind of crimes, no matter how hard their struggle actually was, and it is also likely that even some affluent people would commit crimes, even though there really was nothing that these people needed or wanted that they did not already have or that they could not afford to just go out and buy (Fleischer, 1963). However, looking at whether homeless people commit more crimes (or different kinds of crimes) than people who are employed and who have homes to go to at night could still give a lot of insight into the inner workings of human behavior and would then hopefully provide better ideas of how people in the nursing profession could help who are homeless to create better lives for themselves.

In the homeless population in this country there are a lot of people who require medication for psychological illnesses or problems. Unfortunately, most of these homeless people do not receive medications that they need for the mental disorders that they have, and there are psychological, economic, and social issues which affect their ability and also their desire to look for treatment and to keep taking a medication once it has been prescribed to them (Hale, 1991). As there are more people losing their jobs and their homes, the homeless population in this country is going to continue to increase and become more diverse.

Where Richmond, VA is concerned, the problem of homelessness is not quite as severe. Mostly this comes from the fact that there have been fewer foreclosures there than in many other parts of the country (the Housing Recession, 2008). However, this does not mean that Richmond will continue to do well or never have any kinds of problems. With this being the case, it is very important to take a look at what Richmond can do to protect itself as much as possible from the deepening recession. If Richmond begins steps now, the problems that it has seen with the recession up to this point might be stopped from getting any more severe, which would greatly benefit the city and the state, as well.

Chapter III: Methodology

Type of Data Collection

Where research is concerned, the way that it is conducted is highly important. Due to this, it is important to examine the idea that there are two specific ways to conduct this research - the quantitative approach and the qualitative approach. Sometimes these are taken together and called the 'mixed-method' approach, but they will be discussed separately here. In order to discuss them there will be four specific areas that will be looked at. These are: (1) Types of data collected, (2) Instruments used to collect the data, (3) Fundamental differences in how both types of research are conducted, and (4) Procedures used to analyze the data. For each one of these areas, at least four examples will be addressed for both types of research methods so that the comprehensiveness of these methods can be seen (Diaz & O'Hanlon, 2001).

Quantitative research reveals a lot of information but it is subjective, since the participants' input generally serves as a primary source of information for the researcher (Creswell, 2001). Types of data that are collected in quantitative research include: answers that are given to surveys, statistical information found through the use of surveys or a more expanded study, comparison data collected between an individual or group and others, and raw data that needs to be coded yes/no (Diaz & O'Hanlon, 2001). Instruments used to collect the data include statistics, surveys, comparisons, and SPSS services. There are also fundamental differences in how both types of research are conducted which will be discussed later in this document, along with the procedures that are used to analyze the data.

Qualitative research generates data that is based on the participants' own categories of meaning, it is useful for studying a limited number of cases in depth, and tends to collect data in naturalistic rather than empirical settings (Creswell, 2001). Types of data collected generally involve the opinions and beliefs of the researcher and the subjects that are being examined, through the use of various instruments. Instruments used to collect the data include case studies, interviews, focus groups and observation (Creswell, 1994).