Institution’s Name The Economic Recession of 2007 Name Student’s Number Course Number Teacher’s name 9th June 2012 The Economic Recession of 2007 Outline I. Introduction A. A brief of the origin and progression of the 2007 recession. B. A short explanation of the causes and consequences of the 2007 recession as well efforts employed to curb it.
The Tariff placed high taxes on imports leading to a decline in international trade. The United States held many loans with European countries that began to default. Reduction in international market spending in the US, coupled with the high tariffs placed on foreign countries led to unemployment abroad and foreign countries were forced to impose their own tariffs on other countries (Kelly, n.d.). The Great Depression was perhaps most devastating to the individual and family. The Depression was recorded to have decreased the marriage rate which helped lead to a decline in the birth rate.
Because of these economics times that the world is currently in, the company found its business in disarray subsequently an action plan was put in place for the company could be saved. More than 34,000 of jobs were lost in the US and Canada alike at that time. As of January 16th 2009 a week after the motions were initiated in court, Circuit City decided to close all 567 remaining stores in the United States. The lost of these jobs have not only affected the company but their employees have suffered irreversible damage in these economic times. The communities were these jobs were lost have been devastated.
Prior to this revolution of machine, progress was slow. This made travel difficult and even dangerous to travel on poorly made roads. However with the industrial boom, it provided safer and shorter travel times, people began leaving rural area and journeyed to the city for opportunities and prosperity. Then October 29, 1929 happened and the stock market crashed, known as “Black Tuesday,” or “Black Thursday”. It devastated not only in the U.S economy and but worldwide.
An Analysis Of The 2001 Recession An Economic Analysis of the 2001-2002 Recession The recession is commonly defined as “Two or more consecutive quarters of a shrinking economy.” During the month of March 2001, the world’s largest economy - The United States of America - began experiencing a downturn, leading into a recession. (“Economists call it recession”). In comparing previous recessions that occurred, it appears that similar patterns exist also in the 2001-2002 recession. Such patterns start with increasing interest rates by the Federal Reserve Open Committee, proceeded by growth slowdowns, the fall of real output, and eventually the rise in unemployment. According to Robert E. Scott and Christian Weller, “further increases in real short - term interest rates herald a slowdown.” Further evidence that suggests a recession was on the horizon was information released from the National Bureau of Economic Research that states, “A peak marks the end of an expansion and the beginning of a recession.”(The Business Cycle Peak, March 2001.)
The credit crisis has revealed glaring gaps in the risk management processes of even the biggest players in the financials sector. After the demise of Lehman Brothers and the near-collapse of AIG in September 2008, credit markets became dysfunctional and capital flows that had already slowed ground to a halt. As global banks continued to reduce leverage, the impact of the crisis began to engulf households and businesses around the world. By the end of 2008, most advanced economies were simultaneously in recession for the first time since World War II, reducing growth prospects in emerging markets due to lower demand for export goods. As a consequence, global growth is expected to remain below potential in 2009 and 2010.
K (2008) the Anatomy of Social Security and Medicare. Independent Review, 13(1), 5-27 Retrieved from EBSCOhost. Coile, C. C., & Levine, P. B (2011). Recessions, Retirement, and Social Security. American Economic Review, 101(3), 23-28.
Moreover, I would like to know how a natural disaster in another nation can impact our economy here. Not to mention how changes in unemployment impacted the housing markets decline. Housing Market I really haven’t kept up with the economy like I should; however, I have heard a lot regarding the housing market and its decline. This is largely due to high unemployment rates and lending practices of the banking system. Although the economists have said we are coming out of the recession, the housing market is still rocky.
The whole luxury goods industry in the U.S. dropped over 14%, and R&R revenues declined 10%. Although R&R suspended new-store opening and hiring, the condition still struggle. So, now the CEO of R&R Linda Watkins not only has to cope with the SPH lawsuit and the huge amount of punitive payment, but also the reputation damage during this hard time. Central Issue How CEO of R&R Linda Watkins fix some flaw of the Ownership Culture (SPH program) during this hard time. Recommended Course of Action Linda should revise the Ownership Culture partly, such as adding extra commission for excellent sales.