Recession In The United States Economy: Article Analysis

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The recession is all over the news, and how it is changing how American’s think, act, and spend today. In a recent article in USA Today, the effect of the recent recession and strained economy is reaching everyone, and reshaping lives. The weak economy is restructuring what people have grown accustomed to in past decades. The dismal economy is having a profound effect on life in the United States; from delaying marriages and divorce to reducing car and home ownership, and private school enrollment (Recession reshapes life in USA, 2011). The recent downturn in the economy is wreaking havoc on the American standard of living and forcing more cutbacks into an already frugal lifestyle. The word economy means “one who manages a household”…show more content…
This debate has been heated up through the Obama administration (Mankiw, 2012, p. 16). Throughout 2008 and 2009, the United States has experienced an economic downturn. Lawrence Summers, Obama’s economic guru, states “government assistance programs contribute to long-term employment …. By providing an incentive, and the means, not to work” (Mankiw, 2012, p. 309). As indicated in the article, the reduction of marriages, babies, and divorces are indicating that these items are proving too costly to incur during this downtime. Today, more people are without jobs, therefore the scare resources are scarcer and result in the postponing of major lifestyle changes like marriage, having a baby, a private school education or buying a…show more content…
Price controls below market rates, like the record low prices in the interest rates for mortgages, hold down monetary reduction will result in inflation. Thus, making it much more difficult to restore a healthy and sustain economic growth. According to the National Bureau of Economic Research a recession is defined as “ a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real gross domestic product (GDP), real income, employment, industrial production and wholesale-retail sales” (What causes a recession? , 2011). Prices rice when government prints too much money. Society is facing a short-run tradeoff between inflation and unemployment. The recession that is reshaping the lives of American’s is a direct result of

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