Economic Recession In America

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Recession & Unemployment in America America, as a whole, has been under an economic recession for over four years. The government is spending much more money than they are making. The government can always make more money. Many American families cannot see the light at the end of the tunnel. Prices are rising while the family income is not. A scarce in money also causes another big problem for families- foreclosure on their house. If a family goes homeless, it continues to spiral downhill. Unemployment rates have always been increasing, which mean 1) people have stopped looking for a job or 2) people just cannot get a job. Either way, its caused America to be in a recession for over four years. The government needs to start worrying about…show more content…
“Irrational exuberance in the housing market led many people to buy houses they couldn't afford, because everyone thought housing prices could only go up.” ( During 2006, housing prices started to decline. Many people took out loans with very little money down, and they had to foreclose on the house because if they sold it, they would not get enough money back. With the foreclosing rate increasing, many banks began to freak out because they were going to face huge losses. Around August of 2007, banks become afraid to loan money out due to the fact that they did not want to suffer from losing money yet again. “This led to the $700 billion bailout, and bankruptcies or government nationalization of Bear Stearns, AIG, Fannie Mae, Freddie Mac, IndyMac Bank, and Washington Mutual. By December 2008, employment was declining faster than in the 2001 recession.”( With so many foreclosures on houses, many americans were either homeless, or had bought a cheap apartment to keep them from being homeless. Because of the recession, and bad economic, many Americans have no jobs, and barely have a house. Or they are making payments on a house they cannot afford, which is only leading them to more debt as an…show more content…
We had The Great Depression, a recession in 2001, and now the recession from roughly about 2006-2012. It is said that the recession will continue into 2013, and that a “fiscal cliff” is what we will go off. The world's biggest economy will shrink 1.3pc in the first half of 2013 if a mix of tax increases and spending cuts currently scheduled all come into force at the end of the year.( Tax cuts introduced by George Bush are planned to end at the end of the year. If we want to end the recession, we need to end it soon before it follows us into year

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