Cite One Or Two Major Problems Facing This Country Today And What You Think The Government Should Be Doing To Deal With Them.

549 words - 2 pages

"It took seven economists 11 months to decide what should seem obvious given all the foreclosures, bank failures and layoffs - the United States is officially mired in a recession." ,(San Francisco Chronicle - Dec 2, 2008). It has been months everybody is talking about the economic and financial situation before the U.S government can actually do something to lift it up. From 1960s up to now there has been 6 recessions sweeping through the States. And yet all of the "actions" the Government has taken are not enough to prevent it from happening or to lessen the results it causes to the nation.The collapse of the housing market in December 2007 led to bank collapses in the US and Europe, causing the amount of available credit to be sharply curtailed. Many economists believe the current downturn could be the worst since the recession of 1980-1982, when the U.S. unemployment rate soared above 10 percent. The nationwide jobless rate is currently 6.5 percent. Unemployment in California is 8.2 percent. The recession was suggested by several important indicators of economic downturn. These included high oil prices which led to drastic high food prices due to the extremely loose monetary policies and low interest rates of the U.S. Federal Reserve. And this condition occurs not only in the States but all around the world, which is the worst global recession in the last 20 years.After a chain of banks filing for bankruptcy the Government finally bought the 'bad' assets and tried to stabilize the financial crisis. In the second half of 2008, the prices of most commodities fell dramatically on...

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