The business cycle, which may be called trade cycle, refers to the fluctuations in the general level of activity in an economy that affect many sectors at roughly the same time, though not necessarily to the same extent. In recent times, the periods between two peaks varied from five to ten years (Lipsey & Chrystal, 2007) .The economic activities are measured in GDP and are categorized into four different stages: the boom (peak), recession (downturn), depression (slump/trough) and recovery (Hallam & Reed, 2005). Commencing, the basic definition of a recession is essential for the reader to comprehend:
A recession is that part of the trade cycle characterized by falling levels of demand, very little investment, low business confidence and rising levels of unemployment…the official definition of a recession is two successive declines in quarterly GDP (Lines, Marcousé, & Martin, 2003).
During a recession companies’ fight for survival by minimize their expenditures with reduction of their labor forces and attempts to increase capacity utilization, as a result there is an increase in the unemployment rate (Hallam & Reed, 2005).This research paper revolves around the repercussions of the great recession of 2007-09 and demonstrates to what extent unemployment has impacted the medical conditions and family life in the United States. . As stated by Starr (2011), the recession of 2007-09 inflicted considerable economic hardship on the U.S. population. . A confluence of factors and economic events lead to the US economy falling into a recession that in its severity can only be compared to the Great Depression of
1929. The ranks of unemployment increased by an additional 8 million people between December 2007 and October 2009, with an additional 4,6 million people shifting involuntarily into part-time jobs and additionally 2,6 million Americans fell below the poverty line.
The evidence of the effect that an increase of unemployment has on the medical conditions of US citizens is dramatic with respect to health concerns and mortality rates across the country. According to Gordon, (2009):
Researchers have found that with every one percent increase in the U.S. unemployment rate, 920 more people commit suicide, 650 commit homicide, 500 die from heart attack and kidney disease and cirrhosis of the liver, 4 000 are admitted to state mental hospitals, and 3 300 are sent to state prisons. In total, a one percent increase in unemployment rate is associated statistically with 37 000 more deaths, including 20 000 heart attacks. (p.310)
The unemployment deprives those affected of their medical health insurance, as this is typically a job benefit that is paid by employers. As the unemployed are no longer able to seek medical attention due to their incapability to finance the services and medication needed, the situation they find themselves in becomes increasingly frustrating and in many unfortunate cases reaches desperation. Richard McKeon, the lead...