Nobody downloaded yet

The Great Recession and The Policy Response - Research Paper Example

Comments (0) Cite this document
Summary
The Great Recession and Policy Response Explain the cause of the crisis: America has always had one of the most stable, if not the most stable economy in the world. After the Great Depression that beset the country during World War II, it seemed like lessons were learned about the causes of the financial crunch and how to avoid a repeat of that decade's debacle…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.6% of users find it useful
The Great Recession and The Policy Response
Read TextPreview

Extract of sample
"The Great Recession and The Policy Response"

Download file to see previous pages This paper serves to look into the causes of the Great Recession of 2007 as the history books call it and the policy response of President Barack Obama's administration to the crisis. More importantly, I will try to answer the question “Where does America go from here?” Evaluate the Obama administration's policies to respond to the crisis America is a country whose economy has always been based upon the trust factor. The trust that the other nations place upon the credibility of the name of the country and our ability to pay off our country's debt on time allowed the country function like a family that was living beyond its means. We were a country living off “massive foreign borrowing, excessively loose monetary policy, reckless lending practices, lax regulation, and other factors”. As a country, we were borrowing trillions of dollars from other nations every year. Such money inflow triggers rapid and uncontrollable economic growth due to the artificial spending boom that the country was experiencing. This resulted in a real estate boom that would eventually cause the economy to falter as mortgages began to go unpaid. The United States was suffering from a macroeconomic imbalance that had the rest of the world worrying about America, but the Americans were oblivious to what was happening right under their very noses. Economic experts knew that the needle that would burst the economic bubble was sure to come. It was just that nobody could predict when it would actually hit. When it did hit the economy in 2007, there was no place for anyone to hide financially. The U.S economy was officially in shambles and in bad need of rebuilding. What more should the administration do to continue to mend the economy, create jobs, ease credit, etc.? While the U.S was still fighting a war on 2 fronts and struggling to keep up with its debt payments, a new government took over the White House. Pres. Barack Obama rode the wings of change into the White House with the promise that he would end the Great Recession as soon as possible. Everyone applauded and chose to believe that he could do it. But now, 6 years later, the question still remains about what his government policy really was to end the problem and whether it was effective or not. The response of the new Obama administration was swift and clear. He encouraged the adoption of an “accomodative federal fiscal policy”. It is a policy that, even with the great recession having ended in 2010, has failed to help reinvigorate the U.S. economy to the point where economic growth can be said to have spurred to a steady basis. In fact, the growth of the U.S. economy at this point remains suspect because of the lack of effective economic and tax programs on the part of the Obama administration. (Bivens, Josh, Fieldhouse, Andrew , Shierholz Heidi “From Free Fall to Stagnation”). Rather, the Obama government seems to be locked in a battle of political wills with the Republican party as they hold the U.S. economy hostage, a pawn in their political game of survival, without any clear winner. The loser however, thanks to the Obama administration's less than well thought out plans, is definitely the American public. Let's face it, Washington is going to be in a constant state of political gridlock for a long time to come. But our economy ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The Great Recession and The Policy Response Research Paper”, n.d.)
The Great Recession and The Policy Response Research Paper. Retrieved from https://studentshare.org/history/1477560-the-great-recession-and-the-policy-response
(The Great Recession and The Policy Response Research Paper)
The Great Recession and The Policy Response Research Paper. https://studentshare.org/history/1477560-the-great-recession-and-the-policy-response.
“The Great Recession and The Policy Response Research Paper”, n.d. https://studentshare.org/history/1477560-the-great-recession-and-the-policy-response.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
The Great Recession 2008
...? The Great Recession 2008 Beginning mid-2007, the global financial crisis rapidly changed from the housing bubble burst to one of the worst recessions in US in recent decades (Clungston, 2008). This paper utilizes an in-depth analysis and review of the financial crisis with emphasis on its causes, policy responses, and consequences. In addition, the paper highlights three important points. First, the global economy was unstable contrary to the suggestion that it was stable prior to the crisis. Second, there were interlinked and complex factors that led to the occurrence of the 2007 crisis, including global imbalances, lax financial regulation, loose...
12 Pages(3000 words)Term Paper
Great Recession and Job Market
...Great Recession and Job Market There are no areas in our social life which escaped from the negative impacts of the recent financialcrisis. Some economists are of the view that the recession period is over and the economies in the world are slowly coming back to its growth phase whereas others are of the view that the world has not fully recovered from the recession problems yet. Many of the prominent organizations both in America and in other parts of the world were collapsed as a result of the depth of the injury caused by the current recession. Moreover, many other organizations forced to cut down their expenses and as result of that many people lost...
10 Pages(2500 words)Research Paper
Fed Policy Actions during the Great Depression and Great Recession
...Article Review Then and Now: Fed Policy Actions during the Great Depression and Great Recession This paper would present a review of the article “Then and Now: Fed Policy Actions during the Great Depression and Great Recession” by David A Lopez. The ‘Great Recession’ that engulfed the United States and subsequently the whole world during 2007-2009 was very severe; however the magnitude of its financial impact was nowhere as devastating as that of the ‘Great Depression’ during 1929-1933. This article evaluates both the economic downturns and assesses...
3 Pages(750 words)Book Report/Review
GREAT RECESSION/GREAT DEPRESSION
...which were able to survive ceased to lend out their money. This chronology of events intensified deflationary pressures accelerating the downward spiral. 2.4. Monetarist’s theory The monetarist theory was an argument brought forward by Milton Friedman and Ben Bernanke (Muljadi 6). Their argument was that the great Depression was caused by monetary contraction (Muljadi 6). Further explaining the cause, they suggest that it was as a result of poor policy making by the American Federal Reserve System. Monetarists place the blame on the Federal Reserve for its failure to act to prevent the shrinking money supply, whose result was the transformation of a normal recession to a...
5 Pages(1250 words)Essay
Compare and contrast the great depression and todays great recession
...developed than in 30s. Economic prosperity is possible in the result of free trading and not economic protectionism (Recession 2008). Economic protectionist policies are challenging for free trade and thus governments do not choose these strategies. They are more focused on free trade development. According to Burton and Folson, “the seeds of the Great Recession were planted when the government in the 1990s began pushing homeownership, even for uncreditworthy people, with a vengeance. Mortgage-backed securities built on dubious mortgage loans became toxic when the housing market took a downturn, and many American banks verged on collapse. The government’s urgent desire...
5 Pages(1250 words)Essay
Unemployment during the Great Recession
...Unemployment during the Great Recession The recession that has been recently experienced by the US has a negative impact on the financial, social and psychological side of every US citizen. The main area where the recession has caused very heavy damage is the area of employment. Although, during this period, organizations have gained heavy profits but they have to provide good quality jobs to the citizens of the US. The job market scenario since the start of the recession is such that there is little to zero job security, the pay rates and the conditions for working are its worse. According to the Iowa Policy Project, out of the total US...
2 Pages(500 words)Assignment
Compare the great depression and to the great recession
..., rising unemployment, decreased money supply and the like. Likewise, the Great Recession led to a decline in international trade, increased unemployment, and dropping commodity prices. The chain of events from significant federal spending to tax increases only aggravated both the crises. Thus, the leaders targeted the scapegoats such as the Wall Street Bankers for the crises. Roosevelt labelled them as economic royalists. Furthermore, he accused American investors for their capital strike, as investment came to a halt. Obama followed their example and held the Wall Street Bankers and other corporate investors as responsible for the Great Recession. He...
2 Pages(500 words)Essay
How does the current financial crisis (Great Recession) compare with the Great Depression of the 1930's In this context, compare and contrast the role of the Federal Reserve. Compare the USA scenario and its policy response with at least one more co
...of governors was not enough to create an impact and hence the country stuck in a decade long deflation, slow growth and unemployment (Canterbery 131). There was similarity at the origin of the great recession but policy response was totally different to what Fed did. The central banks of today have fiat currencies unlike precious metal backed currencies. Therefore during crisis, the Fed “creates” artificial money by increasing bank deposit of members at the Federal Reserve which the public can be lent. During 2008 recession saw Fed printing money worth$2.1 trillion to rescue the financial intermediaries and rejuvenate the economy by financing fiscal...
5 Pages(1250 words)Essay
Comparing the Great Depression to the Great Recession
...affected people throughout the world. This paper shall provide a comparative discussion on the two economic phenomena and draw parallels and differences on the two. To achieve this, the essay shall provide an outline understanding of the events that lead to the 1930s great depression, and the economic policy responses that were executed to handle the situation, and thereafter provide an understanding of the events that precipitated the 2008-2009 recession and the policy responses. Finally this paper shall provide a discussion of the major points raised by analysis of both phenomena. Causes of the Great Depression and...
14 Pages(3500 words)Essay
Policy Responses during the Great Recession
... Policy Responses during the Great Depression When Prof. Bostic went to HUD, the housing and labor market conditions were not favorable because most people were unable to meet their financial obligations. The economic recession affected the housing and labor market that led to the increase in the housing prices. This also resulted in the collapse of some financial institutions that provided funds and employment (USC Price, n.p). The professor further indicates that the majority of the home owners were unable to settle their mortgage debts because of the increase in interest rates imposed by the financial institutions. It is apparent that the increase in the prices of houses was the major problematic condition of the housing market... . This...
2 Pages(500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Research Paper on topic The Great Recession and The Policy Response for FREE!
logo footer
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us