Economic Recession Essays (Examples)

economic recession, its impact on the markets, businesses both large and small, on the private and public sectors and its contribution to the unemployment predicament. It analyses the measures that should be employed to help businesses and companies achieve their corporate goals during this economic decline. ith the diminishing operating budgets and margins by businesses, the paper identifies ways in which businesses can cut costs and yet meet their expectations. It goes ahead to look at which reward practices businesses should use at such a time that will not raise their operating costs to motivate their workers while focusing on maximizing on their returns and achieving their goals.

The economy goes through different cycles and, one of them is the recession. According to Answers.com, Economic recession is a period of general economic decline; typically defined as a decrease in Gross Domestic Product (GDP) for two or more consecutive quarters. A…

economic recession, coupled with a federally mandated raise in the minimum wage, affect the demand for McDonald's fast food? How do fluctuations in the cost of feed for cattle, in crop output, the cost of oil, and all the factors that go into producing our food effect our supply? Most importantly, how can we adjust to meet demand, comply with government regulations, and still earn a profit? The following analysis studies the ways we can adjust supply to increase quantity demand for McDonald's food products, the way we can adjust the price of our product without sacrificing customer service our quality, and the way we can maintain a comfortable profit margin in current economic conditions.

hat factors affect demand for our products? Regardless of the economy, people still need to eat. Because many consumers of our food may be working two jobs or more to make ends meet, the demand…

High unemployment and an economic recession in the United States both have strong effects on the selection decisions of companies. This is due to the fact that companies want to get the most qualified candidate. When there are higher unemployment numbers, there are actually more people applying for the positions that are available. During a recession, though, it can be more difficult to hire for these positions, because the money to hire more people may not be available.

Selection methods have to be both valid and reliable. If they are not, they could end up being illegal and violating the ADA or other laws. That can get companies into serious trouble with fines, lawsuits, and related problems, so it is very important to avoid selecting and hiring people based on anything but legal, reliable, and valid characteristics.

Structured interviews are superior to unstructured interviews because they follow a pattern that…

BAILOUT OF ALL STREET VS. THE INDIVIDUAL HOMEONER BAILOUT

Economic Bailout of all Street vs. the Individual Homeowner Bailout Proposal

Homeowners are always interested in safe financial arrangements regarding their mortgage plans. However, some of them who lack the important plans to be on the right track often end up failing to recover their homes from the mortgage lenders. It is in the occurrence of such misfortunes that the likelihood of losing the homes becomes real. This necessitates the role played by the government in restoring order and sanity back to the homes. Reasonably, there is a need to work in collaboration with the government because the same can do all these and bring to the attention of the leadership.

Bailout Programs for Mortgage Beneficiaries

The background of the circumstances leading to a bailout of the program emanates from the fact that there can be a problem with the income…

1. Briefly describe central banks’ response to global financial crisis.
When recessions and other economic problems strike, one of the main responses that is seen from the economies involved is a lowering of interest rates. Indeed, the governments make money cheaper for banks to borrow so that it spurs investment and growth. This, in turn, tends to help support or grow economies. There is also the use of quantitative easing and the issuing of bonds.
2. What is quantitative easing and what securities are used in the programs in the US, EU, Japan?
The ostensible inefficacy, at least on its own, of lowering interest rates and issuing bonds has led to the use of quantitative easing by countries like the United States and the European Union. Indeed, it is a way for a government to “pump money” into an economy. This happens when a government buys government bonds and other…

Conclusion

Each of the four economies studied suffered somewhat from the economic downturn. The differences between the severity and length of recession in each country will inevitably be affected by the structure of that nation's economy and its relationship with the international monetary system. As such, it is important that we analyze the differences between these nations and the ways in which the current economic crisis impacts their economies. e can learn why some countries are comparatively successful at mitigating the impacts of recession, while others suffer more than they probably should given their links to the root of the problem. This insight can help the players in the international monetary system to develop a system in future that is better able to manage the downside impacts of recession.

orks Cited:

Zakaria, F. (2009) the Canadian Solution. Newsweek. Retrieved October 23, 2009 from http://www.newsweek.com/id/183670

Flynn, D. (2008). Greece did too…

In order for this to happen there must be a lot of industrial production happening. If you look at the history of industrial production, when ever there has been a drop, consumers have stopped spending and a recession has taken place. During the oil crisis from 1973-1975, the industrial production rate fell to about 74%. In 1983 the industrial production rate fell to 71% sparking the recession of the 1980's. Again in 2001, the industrial production rate fell to 74% after September 11th, causing the recession of the 1990's. Today the industrial production rate has fallen to about 73% leading to the current recession (History of U.S. Economic ecession, n.d.). If history holds true the industrial production rate will go back up and consumers will once again spend money and the recession will fade from our memory until the next one comes along.

eferences

History of U.S. Economic ecessions. (n.d.).…

As Taibbi shows, it is not easy: "I'm going to say something radical about the Tea Partiers. They're not all crazy. They're not even always wrong. hat they are, and they don't realize it, is an anachronism. They're fighting a 1960s battle in a world run by twenty-first-century crooks" (Griftopia 16-17). Taibbi makes clear that the Tea Party is not even homogenous: it is made up of a broad spectrum of individuals (some of whom do not even want to be called Tea Partiers) who are angry and looking for someway to focus their anger.

In conclusion, recouping the losses is not an easy thing to do. hen a company like Lehman Brothers can be allowed to collapse while their competition (Goldman Sachs) can be bailed out by tax payer dollars, citizens are going to start wondering how their country got to such a point in the first place. Taibbi…

Many businesses could no longer operate in this fashion and likely closed their doors leading to a rise in unemployment. This is an example of the rule that Hitler had on the Pre-World War II German economy. The people of the nation were completely subject to his policies and because the economy was in such a vulnerable position as a result of the First World War, that Hitler's policies were looked upon as providing assistance to the nation. The research indicates that Hitler's rule over Germany managed to counter the rise in unemployment with institution of the German Labor Service and other workforce and labor programs.

Pre-World War II Unemployment in Germany

etween January 1933 and July 1935 the number of employed Germans rose by a half, from 11.7 million to 16.9 million.

. Under the rule of Hitler, more than 5 million new jobs paying living wages were created.…

He also said that it was high time that every person in the world stopped being economically defensive and started to become politically courageous. At the same summit, the Minister of Sustainable Development and Planning and Head of the Economic and Social and Ministerial Council of Bolivia said that a responsible community would make up and constitute the very basis of global sustainability and stability, and sustainable development was what had helped Bolivia survive through all the years of economic instability and political unrests that it had been subjected to all the previous years. (esponsibility for each other- as Johannesburg's High-Level Segment Begins)

However, though it is widely accepted that Bolivia is indeed heading in the right direction today, it is still lacking in clear markets, and in a complete access to the various technologies that exist in the world today, and also in a guiding mechanism that would help…

Economics

Growth The retailer sector was lately affected by the back-to-school shopping season, which did not start so well, as midprice department stores, discounters and specialty-apparel retailers announced disappointing sales results during August, which reinforced the already much debated concerns that consumers are not comfortable with the current state of the economy and are reluctant to consume, considering the shaky and uneven economic recovery.

However, luxury department-store chains managed to post significant earnings, as they benefited from the help of an important number of upscale shoppers. Still, the effects of higher gas prices and the rising value of grocery bills, combined with lackluster job growth were severely felt by moderate- and lower-income shoppers.

Michael Niemira, chief economist and director of research at the International Council of Shopping Centers feels that "There's weaker-than-expected performance," due to the fact that "there was a slowdown in spending, but some results are exaggerated by…

Edgar Hoover, makes public its continuing investigation into the activities of black nationalist organizations, singling out the Black Panther Party in particular, Hoover viewing the group as a national security threat.

January 05, 1970

Blacks Move Out of Inner Cities: The Bureau of Census statistics show as the quality of life in poverty-stricken urban communities worsens, a continuous stream of middle-class blacks escape to higher-income neighborhoods and suburbs.

February 13, 1970

First Black Member of the New York Stock Exchange: Joseph L. Searles III becomes the first African-American to become a member of the New York Stock Exchange, starting his training as a floor partner with the firm of Newberger, Leob & Company.

June 16, 1970

Gibson Elected Mayor of Newark, New Jersey: Kenneth A. Gibson was elected mayor of Newark, New Jersey on this date. He also became the first Black president of the Conference of U.S. Mayors during…

This mindset was made possible by their intensive investments in new technologies that made transactions inherently unauditable and untraceable by the Securities and Exchange Commission and other governance entities. Given the automation of these complex trading workflows and the inability of governance bodies to keep pace with technological advances, coupled with banker's unwillingness to assist governments in tracking increasingly intricate transactions, the bankers could literally make their own rules up as they went along. What has differentiated this global economic downturn from others is how pervasive this attitude has become of offloading risk by aggregating toxic and bad loans together, using technologies to increase speed of transactions while alleviating accountability (Corden, 2009).

An aversion to risk has been replaced by a consolidating, aggregating and re-selling of completely worthless and often called "toxic" loans, with accountability of the performance of investments left by the wayside. Bankers had the most to gain…

"Construction -- which was a substantial component of investment -- fell because the housing stock exceeded the demand after 1925. " (Temin 9) Termin goes on to say that

Consumption fell because wages, other income, and capital gains all fell, with the fall in wages having the largest effect. Business investment fell because profits fell and -- to a lesser extent -- because the yield on equities rose. Residential construction fell because the stock of housing four years previously was high. Inventories fell because sales fell. But wages, profits, and sales all fell because consumption and investment fell." (Temin 49)

All of these cascading events could and to some degree are occurring today and the cascading effect will likely result in economic fears and realities, "…under freely-competitive capitalism, periods of boom and overproduction were followed by downturns which 'corrected' prior imbalances via falling prices" (Burkett 60) All of the economic…

In the future, the politicians could support an agenda promoting the national manufacturers in an attempt to reduce imports and increase exports. The direct impact for the mechanic could be that he might have more work in the future.

Another example of how the book is useful is given by the need or desire to understand the features of the contemporaneous economic crisis. Despite the fact that the media present apocalyptic stories of today's financial challenges, a reading of Clayton and Giesbrecht's book would reveal that the economy has often been confronted with challenging times and that times of economic boom and recession are normal. Otherwise put, a Guide to Everyday Economic Statistics would help the reader understand the cyclic character of an economy and he would as such be less pessimistic. Listening only to the media coverage of one bankruptcy following another would definitely take a negative toll on…

S. The societal system practiced in France serves as a model towards which the U.S. aspire.

President Barack Obama's healthcare reform plan is considered by many as being a socialist experiment that will significantly hurt the economy (CBS, 2009). In opposition, the President has stated that he does not intend to implement a healthcare system that depends on the government. Instead, he would prefer a system in which the government competes with private insurance companies for selling coverage.

The Invisible Hand Principle

The invisible hand principle was developed as an opposition to the protectionist system. This principle is actually a metaphor describing the self-regulating characteristic of the market. In other words, such a system can be implemented due to a combination of factors, like self-interest, competition, supply and demand. Adam Smith, who developed this theory, considered that the action of these forces and their effects are able to allocate resources…

Economic Crisis Policies

US current economic crisis is considered to be started from real estate sector. The real sector started to decline in 2006 and it accelerated in 2007 and 2008. Housing prices have fallen from the peak from about 25% so far. The decline in prices left homeowners with no option and they were unable to refinance their mortgages and causes default of mortgages. This default of mortgages and loans swallowed the banks and financial markets such as falling of Lehman's brothers and other anks and blow to rest of economy happened as the whole economy was relying on banks and ultimately it slows down investment in the country and capital flows to other parts of the world like China and India. ank losses cause reduction of bank capital which in turn requires capital reduction thus saving bank from lending. It is estimated that every $100 loss and reduction…

Economic Crisis

The revelation of the financial crisis that unfolded in United States in 2008 is considered to be the worst economic crisis since the Great Depression, 1929. The distinctive causative factors that have contributed to the U.S. economic crisis 2008- 2009 are differentiated by aggravated financial control, higher risks in capital investment, the housing bubble phenomena in relation to the brisk credit expansion. The aggregation of these factors in the U.S. economy directed the economy towards the de- leverage and credit crunches as the bubble burst. The following paper shall be discussing about the degree of correlation between the tax implications policies with respect to the financial crisis in U.S.. The precise review of strong linkages between the taxation and economic crises is the explicit explanation of the crisis that shook America. The paper also highlights the key factors that demonstrated their abilities and rescued U.S. In the economic…

If there is a risk that one of the family members will lose his or her job, that will add risk to the purchase decision. The riskier the purchase decision, the lower the price will need to be in order to compensate for that. Another factor here is the expected change in housing prices or interest rates. Buyers are inclined to enter the market if they believe that the cost of home ownership will be higher next year, but they may delay purchases if they believe that costs will be lower next year.

ith new home sales last summer, the dip could be in part due to worries about a double-dip recession. The summer was characterized by an inane fight over the debt ceiling, something that shattered confidence of many in the political system, and some of the key actors within that system. A fractured political system is one that…

Economics

There are several factors that could contribute to increased demand for owner-occupied housing in the United Kingdom. Given that this demand is presently suppressed by a poor economy, most of the conditions under which demand would increase involve finding ways to boost overall economic performance. One normal policy prescription, lowering interest rates, is effectively off the table with the current rate at 0.5% and the Bank of England expected to maintain this rock bottom rate for the foreseeable future (Oxlade, 2013). Banks could lower lending rates to buyers, but these rates are usually based on spreads relative to the rate at which banks borrow, so there might not be much flexibility for banks to lower rates profitably.

One way would be to boost the economy through fiscal stimulus, government putting money into the economy instead of taking it out. This would create better demand conditions, and would also give…

Increases in manufacturing reveal benefits early, one can track the benefit at all stages and report the benefits to the public quickly. According to a statement released by the Center for American Progress, "solar panels don't install themselves. Wind turbines don't manufacture themselves. Homes and buildings don't retrofit or weatherize themselves. In our industrial society, trees don't even PLANT themselves, anymore. eal people must do all of that work." The public wants a quick fix, they want to start hearing that the economy is doing better and a focus on manufacturing will accomplish this. Additionally, there has been increasing pressure on the White House to focuses on alternative energy sources. Such a policy would gain favor with democratic and liberal environmentalists.

4. Do you consider your views to be more aligned with a classical or Keynesian approach to economic thinking? Explain. (There is no right or wrong answer). See module…

d.).

In order to understand this idea about inventories, it is necessary to understand that if the prices were to change and not be rigid, then it would be the prices and not the inventories that would guide companies in their decisions about production. For example, if prices were increasing, a company would know that their product is popular and that they should increase the production of it. And if the prices were decreasing, the company would know that their product is not selling well and that they should probably reduce its production. In an economy though where the prices are fixed, companies need another way of deciding whether they should increase or decrease production. This is where Keynes came to the conclusion that the key is to observe the changes in the inventories in order to drive production (hat Causes a Recession to be a Recession, n.d.).

Over the…

Economic Events: 1980-1989

the decade of greed. The era of onald eagan when the rich got richer and the poor got poorer. Despite this common wisdom, 1980 started off auspiciously. On May 8, 1980 the World Health Organization hailed "one of the century's greatest medical accomplishments," the final and total eradication of smallpox (Dickson 247). But how quickly times change - barely a quarter century has passed and this same disease is making headlines once again.

Attitudes change also. While many in this day and age would still agree that the 1980's was a selfish period in American history, a sea-change has occurred in the rhetoric issuing forth from Washington D.C. In a very fundamental way, party politics has been thrust aside as concerns for homeland security take precedence over petty partisanship. Michael Barone notes this in his analysis of a speech made by Democrat ichard Gephardt in the Summer…

Economics

There are a number of different causes for the most recent recession in the United States. The primary cause was instability in the banking industry, which was brought about mismanagement of mortgage assets. This paper will investigate this cause in particular, although there were other causes as well.

The housing bubble was created when, fueled by easy access to cheap loans, housing prices increased rapidly. These prices increased rapidly in part because the financial institutions that underwrote the mortgages were able to offload that debt onto other investors. They did this by packaging that debt into instruments that were known as collateralized debt obligations (CDOs). These rare derivative instruments were used by financial institutions to hedge loan risk, by spreading that risk around the financial services industry. Loans were packaged, and these complex bundles of loans were typically seen to be low risk. They were not, however, and when…

Economics

UK Economy

An analysis of the latest figures for key economic indicators and the factors which have affected these indicators. This should include the figures for unemployment, inflation and economic growth.

Unemployment

The unemployment rate is a very important indicator of the overall health of the economy. Currently the unemployment rate is at 7.8% (Office for National Statistics, 2012). However, this figure does not affect the population equally. Different segments of the population have different employment rates. Furthermore, the unemployment rate does not include people that are not actively seeking employment. In the chart these people are considered to be "inactive." Another interesting item listed in the report is that the unemployment rate for the youth demographic was falling due to a record number of 16 to 24-year-olds being enrolled in some type of educational program.

Employment in the UK has suffered from recession. In 2008 there was a…

Economic Crisis

The recession of 2008-2009 and the subsequent government responses provides a good test for economic theories. There are no controlled experiments in economics, so we can only work with case studies in order to understand how economies work. A good starting point is to consider the issue through multiple different lenses, so that we can understand how the crisis occurred and what prescriptions might be best suited for response either to address the root problems or to engage in prevention. This paper will consider the works of Marx, Schumpeter and Keynes in analyzing the financial crisis. All three of these men would have been able to understand its causes, but likely would have taken very different approaches to solving the problem.

The second issue at hand is the question of the future of capitalism. We have a pretty good sense at this point of what the response of…

00). This is below the EU, where they have a rating of 42 or a PPP of $32,500.00. (Czech epublic 2010) 1 When you compare the two numbers, the purchasing power is lower in the Czech epublic in comparison with the EU. This means, that labor costs are much lower in relation to the rest of Europe. When you put this together with the increases in the GDP over the last two quarters and the fact that the banking sector, was undamaged from the financial crisis; means the Czech epublic has outstanding opportunities for addressing the needs of the company. As the country's costs, the business friendly atmosphere and prudent practices of government policies are creating the ideal environment for a European call center to flourish.

isks

Despite the obvious advantages, there are risks of relocating to the Czech epublic the most notable would include: the underlying cost structure. While…

Economics

hile the U.S. is only showing the first signs of recovery from the global economic crisis, other nations such as Australia and China have recovered much more quickly. There are a number of factors that have contributed to the disparity in economic performance in the past three years in these different nations. In particular, three factors will be considered. The first is the situation in each country at the outset of the crisis. As the crisis was largely precipitated by a credit crunch, the differences between the structure and regulation of the banking sectors in each country will be given particular attention. The second factor will be the response on the part of each federal government to the crisis. The third factor will be the nature of the different economies -- the degree to which different structures have impacted the recovery process. Lastly, policy implications will be drawn for…

Economics in the United States

Macroeconomics in the United States

Macroeconomics deals with the general economic systems, which have a larger scope compared to individuals and markets. Essentially, microeconomics is mainly used in the determination and forecast of a country's national income. This is done by analyzing the factors of the economy that represent trends and patterns and in most cases influence each other. Economic factors affecting macroeconomics include the rates of employment and unemployment, positions of balance of payments, trends in Gross Domestic Product (GDP) and inflation. Macroeconomics is controlled by the monetary and fiscal policies, which are implemented to control economic factors. Levels of investment and consumption of products and services is also determined by fiscal and monetary policies.

Microeconomic situation in the United States

Figure 1.1: Trends (in percentage) of Unemployment in the U.S. -- 2012

2012

March

April

May

Changes from April to May

Total for…

Economic Depression of Europe

An economic depression is more severe than a recession due to the fact that a depression involves drastic decline in a national or international economy, characterized by decreasing business activity, falling prices, and high levels of unemployment.

There were economic depressions in Europe that were experienced before and after the 1870 but with a remarkable difference, being that those that were experienced before the 1870s were less costly in terms of life and resources and took relatively lesser period. Indeed it was a commonplace that every part of Europe experienced one sort of economic depression or the other.

One such economic situation before 1870 was the "little ice age" which began in the late 16th century till around 1950s as indicated by Big Site of History (2011). This was a time when a severe cold that could not be withstood by most crops set in most…

Economics Course

Economics impacts on many areas of life subsequently it will impact on many areas of professional life. eflecting on the lessons learned, including the knowledge and skills gained, the real value is in the way that economics concepts can be applied to the real world; not only to explain event that are seen in the macro-environment, but to guide the way personal decisions will be made with that knowledge.

The first indicator of the lessons and concepts taught in the class being absorbed and developing into transferable knowledge has emerged with an increased understanding of the way that the economy operates and the influences which are present in the economy that are driving up prices.

There are many examples of the economic concepts; one example is the way that supply and demand has impacted on oil prices which has had a knock on effect in the economy as…

Economics

Most particularly, I discuss the economic concept of demand and supply and the determinants of both supply and demand. Further, I also discuss in significant detail the meaning of economic indicators as well as monetary and fiscal policy.

Demand and Supply

Supply and demand are considered some of economics' most fundamental concepts. Indeed, they underlie almost every transaction in a market economy. In basic terms, demand according to Boyes and Melvin (2012), is "the amount of a product that people are willing and able to purchase at each possible price during a given period of time…" On the other hand, supply as Boyes and Melvin (2012) point out can be described as "the amount of a good or service that producers are willing and able to offer for sale at each possible price during a period of time…" It is the interrelation between these two important economic concepts that…

Economics

There are a number of different metrics that can help to measure the health of an economy. The GDP is one of those numbers, and can be obtained from the Bureau of Economic Analysis. Following a decline of 2.6% in 2009, the GDP grew in 2010 by 2.9%. GDP rates fluctuated by quarter, with a low of 1.7% in Q2 following by escalating growth in the last two quarters. This represents a slow recovery from the steep declines of 2008-2009. Another measure of economic health is unemployment. The current unemployment rate from the Bureau of Labor Statistics is 9.0%, a decline of 0.4 percentage points from December. This rate is historically high, it is lower than at any point in the past year, again showing a sign of slow recovery. A third measure of economic health can be found in the inflation rate. The best measure of inflation is…

Economic Crisis 2008-2009

This report focuses on the events that took place in the Great crash of 2008-2009. It aims to highlight the events that took place and what the basic factors and events were that eventually led to the economy crashing. It is also a point of focus to determine what effects came about and how different parties were to be blamed for the deregulation that led to the catastrophic events of the crash. It is linked with the policies present at that time i.e. The Monetary Policies outlining the control of money supply and interest rates as well as the Fiscal Policy that focus on the government spending and taxation policies.

The financial crisis refers to a situation whereby there is a contraction of money supply and the amount of wealth in the economy. This is also known as a "credit crunch" whereby participants of the economy lose…

(Buchanan, 72)

The economic policy tools that were employed just after the war subsequently underwent some changes. From 1947 to 1950 direct controls on wages and distribution were eliminated followed by removal of trade controls in 1958. However, the government continued to maintain its hold over prices and credit distribution which made it different from many of its neighboring states in the postwar period. The French Ministry of Finance exerted greater control over the economy than the Bank of France. This led to a greater predilection to resort to devaluation when external equilibrium resulted due to the state failure to control incomes. In France, the period between 1945 and 1975 was known as the "thirty glorious years" because of the phenomenal economic performance. During this period, the average growth rate of GDP was around 6.8% which was quite remarkable considering that Britain's average GDP growth rate was 2.4% and Germany's…

Economic Challenges Canada Faces

In recent years, the challenging economic condition in Canada has emerged as a concern for citizens, policy makers and the government alike. Canada faces challenges in terms of creating a more innovative society, as the country continues to experience a significant productivity gap compared to other advanced industrial economies. The Canadian industry appears to be slower in successfully developing, applying and marketing innovative products, processes and services than a majority of other nations. This lack of innovation is the cause of Canada's low productivity growth and competitiveness, and therefore must be addressed in order to increase employment growth, a higher standard of living and an improved quality of life for all Canadians.

Current research predicts that although Canada's economic performance will gradually strengthen out of the recent mild slowdown into a better pattern of growth in 2004, Canada's economy still faces the longer-term challenge of increasing…

Energy costs increased substantially and the yen's exchange rate was shifted to a floating rate. The eventual recession reduced expectations of future growth and reduced private investment. Economic growth went down from 10% to 3.6% during the period 1974-79 and to 4.4% in the decade of the 80s. ut despite the oil crisis and its consequences, Japan's major export industries stayed competitive through its cost-cutting policy and increasing efficiency. It reduced industrial energy demands and allowed the automobile industry, along with other industries, to improve. y the late 70s, the computer, semiconductor and other technology and information-intensive industries entered a period of rapid growth. During this high-growth era, exports continued to support Japan's robust economic growth in the 70s and in the 80s. However, the problems encountered on account of its growing balance of payments surplus urged for the opening of domestic markets and a stronger focus on domestic demands…

Economic crash can be viewed from a number of perspectives ranging from causes and effects to the 2008 Crash's resemblance to the Crash of 1929, which began the Great Depression. This paper will consider the 2008 recession from the standpoint of the financial banking industry, which, according to economic journalists like Matt Taibbi (2010), played a major and significant role in the crumbling of the nation's economy -- just like it did in the Lawless Decade also known as the oaring Twenties.

Big Banking Meets Big Government

What has now become known as the Era of De-egulation actually had its beginnings in the 80s decade known just as much for its rampant excess as the early 20s were known for their unbridled lawlessness. Yet, while the latter enjoyed the snubs-to-the-law bootlegging speakeasies, the former enjoyed the merging of the financial sector with the political -- which began during eagan's tenure…

However, Bernanke remains unwilling to use his power to lift economic growth and reduce unemployment. One reason for not wanting to take active steps to speeding up the U.S. economic growth is a worry that the financial markets are fragile. So, it seems that the Federal Reserve are simply willing to accept high unemployment rates for years to come, instead of risking a perhaps worse situation of market panic, a rise in long-term interest rates, and even higher unemployment.

) Mulligan, Casey B. "Don't Fear Inflation, if it Comes," 2 June 2010. http://economix.blogs.nytimes.com/2010/06/2/dont-blame-the-next-inflation-on-politicians/?ref=economy

Inflation occurs when the demand for goods increases more than the demand for dollars and other related assets. Economists have no doubt that the significant deflation that occurred in the U.S. In 2008-2009 was the result of a "flight to quality," as opposed to a sudden reduction in the demand for goods and increase in demand for…

Economics

The supply and demand simulation featured a number of different economic prniciples at work. In terms of microeconomic principles, two that were featured prominently was the relationship between supply and demand. The impact of these two variables on the price and availability of apartments in Atlantis was at the core of the simulation. Another was price elasticity of demand. There were also some macroeconomic principles outlined, as they affect supply and demand. One was the overall population, its growth and demographic change. These factors all contribute to the supply and demand characteristics of the Atlantis rental housing market. Another macroeconomic concept that came into play was the concept of equilibrium and the effects of price ceilings on both supply and demand.

External factors cause the supply and demand curves to shift. The supply curve is shifted, for example, if there is new supply in the market. A new building…

The U.S. is a property owning civilization and a number of the people wanted land and housing. Americans however scarcely ever create savings. "The country itself lives on other countries' savings by issuing bonds to finance its excessive consumption. The current crisis began with cheap housing loans offered by banks. Banks provided loans but instead of holding the loan in their books, they packaged them into collateralized debt obligations (CDOs) and sold them to other agencies. These agencies passed them on to others and spread them globally as assets" (the Current Economic Crisis, its causes, its impact and possible alternatives, 2009).

Interest rates were lowered and housing loans went up with construction activities leading to land prices increasing. The real estate was booming, generating employment and incomes. But as the rate of interest on housing loans came down, banks started to compete to get more business. Because of low interest…

Another fiscal policy that could be implemented is for the government to spend more, thereby increasing aggregate demand. This may have an impact on consumer confidence about the long-run state of the economy, but those long-run concerns are not driving consumer spending today. At this time, the spending policy is something that government can pursue. If poorly targeted, however, its impacts will be temporary. Indeed, if everybody knows that the measure is temporary, this will not affect consumer confidence or business investment in the long run. However, if the policy appears permanent, then the responses could be more permanent in nature as well.

Lowering taxes on that bottom 80% will increase consumer spending, but again might not improve consumer confidence because it only makes the long-run deficit problem worse. Only spending on job creation, therefore, is recommended because it serves to a) address some of the crippling issues relating to…

ECONOMICS

The industrial age was an age of giant, mega corporations that were often bogged down by inefficient and outdated distribution, innovation, and production techniques. y contrast, the information age of the past 20 years or so has brought forth a new business form, a fluid congregation of businesses, sometimes highly structured, sometimes amorphous, that come together on the internet to create value for customers and wealth for their shareholders. This phenomenon has been commonly referred to as "digital capital," "information technology revolution," or "new economy." However, as both the Dow Jones Industrial Average and the Nasdaq soared to historic highs and record volatility in just a few short years, a widespread and quite fundamental disagreement emerged concerning whether or not the high-tech boom was nothing more than one huge bubble.

This paper analyzes and examines the present condition of the United States economy. Part II discusses what phase of…

As a result, these individuals believe that the best approach is to limit the role of the government during this process. (Anand, 2011) (Hall, 2009)

There is No Such Thing a True Free Market Economy

Despite the claims made about the benefits of a free market economy, many opponents will argue that this simply does not exist. The reason why is because the government will always play a role in regulating the practices of businesses. This will occur through protecting the interests of the general public and their ability to control business practices (through policies such as taxation). As a result, the government will play a central role in preventing obvious abuses from occurring inside the marketplace. (Anand, 2011) (Hall, 2009)

During a recession, this means that they can help to stimulate the economy. The way that this occurs is to provide additional amounts of working capital. This means that…

But there have been other causes as well. For example, the collapse of the Soviet Union brought about a significant reduction in defense spending, bringing about a mini-recession in 1990. In the early 1980s a change in Federal Reserve policy brought about an increase in interest rates, which reduced investment both in terms of major consumer products (homes, cars) but also business investment as hurdle rates increased dramatically.

10) 3) a) the marginal propensity to consume implicit in this data is an increase of 800 for every 1000 increase in income, or 0.8.

A b) the expenditure multiplier is 1 / (1- MPC) or 1 / (1-.8) = 5 c) to calculate the equilibrium GDP in this economy, we should build a graph. Where this economy meets with the 45 degree line is the point of equilibrium GDP. In this case, that point is at GDP of 12,000.…

Economics

Governments influence the economy in many ways, but the two most often discussed in economics are fiscal policy and monetary policy (another might a trade policy, for example). Fiscal policy reflects the use of government spending and taxation to influence the economy (eil, 2008). Thus, the level of spending, the amount of revenue collected, and how the money is spent are all things that must be taken into consideration in fiscal policy. Fiscal policy also frequently has an effect on the decisions that businesses and individuals make. Consider the debate about taxes and the "Buffet Rule" -- the tax polices we have now are designed to encourage specific behaviors. This is why capital gains are taxed at a different rate than dividends, and why dividends are taxed at a different rate than interest income. So fiscal policy does affect the way some people behave, as they attempt to maximize…

It is thought that the pace of the recovery will be slowed by people's desire to rebuild wealth, still-tight credit conditions facing some borrowers, and, despite some tentative signs of stabilization, continued weakness in labor markets. With considerable resource slack continuing to suppress cost pressures and with longer-term inflation expectations stable, it is thought that inflation subdued for some time (Monetary Policy eport to the Congress, 2010).

The Federal eserve has continued to support the functioning of financial markets and promote recovery in economic activity doing a wide array of things. The Federal Open Market Committee (FOMC) has maintained a target range of 0 to 1/4% for the federal funds rate throughout the second half of 2009 and early 2010. They have also continued to purchase Treasury securities, agency mortgage-backed securities (MBS), and agency debt in order to provide support to mortgage and housing markets and to improve overall conditions…

When debt becomes a multiple of GDP, then responsible government is not being undertaken.

16- 3) a. The equilibrium is .016 dollars per peso.

b. If the Philippine government set the exchange rate at 50 peso, they would need to sell 20 pesos per month, because supply would be 60 and demand would be 80.

16-7) a) A country would want an overvalued currency if they were a net importer of goods. This would make foreign goods cheaper. The policy would cause harm to that country's exporters.

b) A country would want an undervalued currency in order to facilitate exports. This would cause harm to importers, other countries who want to sell their goods in that market, and to their own citizens traveling abroad.

16-9) a) The exchange rate would be the equilibrium point. In this case, $0.90 dollars per euro.

b) If there is no intervention, the new equilibrium…

Bush implied unemployment figures were declining and Kerry touted very high unemployment figures. In hindsight, it appears that the labor department statistics concurred with the Kerry camp. When Bush still won, unemployment trend indicators seem to be coming true now and there seems to be more problems on the horizon for the economy. The Bureau of Labor Statistics indicated recently that new jobs being created in the economy were the types of jobs that cannot fuel economic growth. Thus, the economy is and will continue to lose jobs to cheaper labor markets around the globe.

The Federal eserve has dictated the cost of capital for businesses to borrow. Trends show that cash shortages in corporate American are increasing and borrowing heavily will be a likely result. Therefore, future actions of the Federal eserve impacts a major aspect of America's future. Trends to observe by the Fed relate to consumer consumption…

Economics for Business

The company that I am studying is Apple. The company is a designer and marketer of consumer electronics, specifically computers, smartphones, tablets, mp3 players and software. The company has experienced a strong run of great performance in recent years, but it has not always been that way for Apple. The company struggled considerably, especially in the 1990s, before breaking loose. The key thing about Apple is that it has always sought to differentiate itself. Over the course of the past ten years, we have seen most of Apple's former competitors in the personal computer space leave the industry. The reason is that the computer industry is moving towards the strategic hell of perfect competition.

Strategy Hell

The term strategic hell reflects the condition of perfect competition. In the real world outside of economics textbooks, few markets can be truly understood to be perfectly competitive. Perhaps a vegetable…

Economics - Country Analysis

Country Overview and Current Events (News)

Ethiopia, traditionally known as Abyssinia, is a landlocked Sub-Saharan country located at the Horn of Africa in East Africa, bordering Somalia, Kenya, Eritrea, Djibouti, Sudan, and the newly-created South Sudan. It covers approximately 1,126,829km2 of land; about the size of the state of Texas, and was, until the split of Sudan, the second-largest country in Africa. Being landlocked, Ethiopia largely relies on the port of Djibouti, to which it is connected by both rail and road. Economic elements such as this, together with the country's history, population, geography and economic performance have been explored in the subsequent sections of this text.

Population: the U.S. Census Bureau, in June 2013, estimated Ethiopia's population to be 93,877,025; a figure that makes the country the second-most populous in Africa, after Nigeria (orld Bank, Index Mundi). Ethiopia's population has been on a steady increase…

We don't look at their psychological well-being. it's almost as though, psychologically, they're a blank. And we know very little about the differences among black women. Some cope better than others. We don't know who they are, why they cope better, what resources they have access to. If we can understand that, then we can understand the needs of those who cope less well. What I am finding so far is that almost all the mothers in my study, when asked whether they would prefer employment to public assistance, say they would rather have a job. However, having a job is very difficult for this group of mothers because it is difficult for them to find and keep jobs that support them and provide adequate benefits. And there's another consideration: When we say we're going to put these women to work, what is it going to mean in terms of…

Now that I have achieved many of the goals I had growing up, I know need to take the next step to becoming a global leader. The complexities of U.S.-Japan trade relations, and other trade relationships in the Asia-Pacific region, are where my future lies. I feel that with my dual country experience, I will be able to make significant contributions to the study and practice of economics in this field. What I have accomplished thus far in life supports this goal, and earning an economics education is the next step.

Prompt 2. My move to the United States has been a challenge for me. I have worked long hours to pay my international student fees. However, this experience has helped me to grow into a successful woman, able to manage any challenge. I arrived in the United States with international experience and strong English skills, but the differences in…

Economic Forces and Health Care

Evaluation of Economic Forces and Impact on Health Care

This paper examines the impact of economic forces on the health care industry and health care management. According to Economy atch, the health care industry plays an important part in the country's economy. The health care industry determines the gross domestic product (GDP), exports status, employment, capital investment etc. The industry is likely to be dominated by continued expansion of demands in the market, increasing prices, and increasing awareness among customers, likely triggering a change in the industry for the better (Health Care Industry, 2011).

Industry analysts point to the healthcare industry as the one bright spot in an otherwise sluggish economy. According to the healthcare Financial Management Association (HFMA), the health care industry is creating new jobs, companies and markets. Job growth as the result of health care demands increased by 65% from 1990 to…

To examine the causes the independent variables will be the costs associated with the production and sale of the cars, looking a both the direct and the overhead costs in the years prior to the bailouts, to assess the degree to which the firms appeared to have control over their costs. If there was a lack of control over the costs, the level of costs may be a predictor of future problems.

Definition of Terms

Before undertaking the research it is necessary to define some of the terms which will be used. The failure of a firm relates to whether a firm entered into bankruptcy. Bailout funding was the funding that was received from the government as part of an official bailout package in order to help the firm survive.

The costs will be assessed in terms of the overall costs incurred to manufacture cars; this may be the cost…

(Drawing the Line on Energy) the newly emerging economies are also trying to find more and more oil for their economies to advance rapidly.

There is a lot of difference among the countries in terms of the amount they produce and in terms of the quantities they export. In terms of production the order is Saudi Arabia, United States, ussia, Iran, Mexico, China, Norway, Canada, United Arab Emirates, Venezuela, United Kingdom, Kuwait and Nigeria. In terms of exports, the order is Saudi Arabia, ussia, Norway, Iran, United Arab Emirates, Venezuela, Kuwait, Nigeria, Mexico, Algeria and Libya. It is clear that USA does not export as it consumes all the quantities that it produces. The need is for USA is to ensure that it gets all the oil it needs and that was probably the reason to attack Iraq. One of the persons contributing to that view was the Vice President…

In other words, these companies expand their business, reach a peak in their business activity, and then go through a period of recession, followed by a period of business expansion, and so on.

It is important that companies understand that the economic sector they represent follows the same business cycle. Therefore, it is difficult for companies to expand their business during periods of recession in the economic sector they represent. But they can expand their business during recession periods of other business sectors, represented by products from indirect competition. This situation can be observed in McDonald's situation.

This can be an explanation of the fact that the company's sales have significantly increased during the crisis. The incomes of most people have been reduced, which means that their purchasing behavior has modified. In such cases, people usually spend less. This means that they purchase less, or they purchase cheaper products. In…

Third, economic depressions spread from one nation to others whereas economic recessions remain substantially isolated where they first occur and they are eased partially by the strength of national economies elsewhere. Finally, contemporary analyses of economic downturns suggest that distortions to industrial labor markets that keep wages above market-clearing levels are more significant than even bank failures (Ohanian, 2010).

Recommendations and Conclusion

It is recommended that public statements on the matter highlight the failure of the opposition to recognize or understand the fundamental nature of economic depressions and the dangers associated with ignoring the important similarities between the 2008 economic crisis and the Great Depression. The current economic crisis shares all of the conceptual hallmarks of an economic depression, including the potential to persist over a longer term and spread globally more than it has already. In that regard, the key to overcoming the current economic crisis is in supporting…

But amid the celebration, crucial opportunities have been lost: In September 2009, the "inspector general for the Troubled Asset Relief Program, a k a, the bank bailout fund, released his report on the 2008 rescue of the American International Group, the insurer. The gist of the report is that government officials made no serious attempt to extract concessions from bankers, even though these bankers received huge benefits from the rescue. And more than money was lost. By making what was in effect a multibillion-dollar gift to all Street, policy makers undermined their own credibility -- and put the broader economy at risk" (Krugman 2009). Many banks have given back their TARP funds, in exchange for the ability to once again engage in risky activities, to pay traders the bonuses they desire, and to pay executives what seems to be overinflated compensation. In June ten of the largest recipients of aid,…

Fiscal and Monetary Policy and Economic Fluctuations

The global economy was relatively doing fine more than five years ago before it was hit by economic downturn or recession. During this period, the American economy was at its peak, particularly in the fourth quarter of 2007. However, this was followed by a mild recession at the beginning of 2008, which eventually turned into a severe credit crisis across the world approximately one year later. While only a few countries escaped the economic recession, virtually no country could avoid the severe bear markets in stock (Norris, 2012). Some countries like the United States experienced changes in gross domestic product and stock markets. Since it has the best record of the main developed countries, the United States was severely affected by the recession. As the economic downturn came to end, America started the process of recovery from the effects of the recession. This…