The Great Recession Essay

1209 words - 5 pages

Personal Finance Term Paper:The Great RecessionStarting in the middle of the year of 2007, there was a bursting of the 8 trillion dollar housing bubble in the United States that lead this country to The Great Recession. This recession officially lasted from December 2007 to June 2009 and resulted in the loss of wealth due to the sharp cutbacks in consumer spending that resulted in a great loss of consumption, that was combined with the financial market catastrophe that started because of the bursting of the housing bubble that brought its country to a collapse in business investment. The consequences as a result of this loss in consumer spending and business investment were dreadful since the unemployment rate greatly increased. Just in 2008 and 2009 alone the U.S. labor market lost an average of 8.4 million jobs. This was the worst recession that the United States has faced since the Great Depression. ("The Great Recession",stateofworkingamerica.org)The United States government needed to do something to help save its economy and help pull its country back out of recession since the consequences that this recession had on the United States were devastating and affected a countless amount of people. That is the reason why the 111th United States Congress in the month of February in the year 2009 passed the American Recovery and Reinvestment Act of 2009 that was signed into law by President Barack Obama on the date of February 17, 2009. ("American Recovery and Reinvestment Act of 2009", Wikipedia.org)The American Recovery and Reinvestment Act of 2009 was also commonly known as the Stimulus package or the Recovery Act of 2009. The reason why the USA passed the American Recovery and Reinvestment Act was for the main reason to save and create as many jobs as they possibly can for the citizens of its country as fast as they can. ("American Recovery and Reinvestment Act of 2009", Wikipedia.org) The United States was trying to find a long term and effective solution to help out its country's deficit and its people that were in a time of great need now more than ever before since the time of the Great Depression and the solution to the recession would be to pass this Act.What the American Recovery and Reinvestment Act did is truly help out Americans to get back on their feet and back to the lifestyle that they used to live, during the time when their economy was prosperous unlike what their economy was during the years of 2007, 2008 and 2009. The Act performed this task by providing temporary relief programs for the people that were most effected by the recession. But other than this the Act also did many other things to help stimulate its country economy like investing in infrastructure, education, health and also including renewable energy. ("American Recovery and Reinvestment Act of 2009", Wikipedia.org)All of the investments of the economic stimulus package did not come at a cheap price because the approximate cost of the economic stimulus package was...

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