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.
Nobody downloaded yet

The Great Recession and The Policy Response - Research Paper Example

Comments (0)
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 paper
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
Comments (0)
Click to create a comment
Policy paper
In contrast to monetary policy it entailed a Keynesian policy of government spending to meet the meet the rapidly declining demand curve then taking over the American population. At the same time the Federal Reserve pursued monetary policy of injecting more money into the American economy, albeit the banks, to buy up failed assets of the larger banks.
12 Pages(3000 words)Research Paper
Recession of USA
As a result of this, the economic growth slowed down, unemployment level increased and subsequently government has to intervene in order to help financial system and the economy to survive one of the toughest economic recessions in the history of US. There has been lot of discussions on the factors which has actually created the crisis and how they further deepened it.
8 Pages(2000 words)Research Paper
Great Recession and Job Market
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 their employment and many others suffered salary cut downs.
10 Pages(2500 words)Research Paper
The Great Depression and Government Response
The great depression (1929-1939) was the most severe form of depression that was ever experienced by the industrialized countries of the world. The depression that had been triggered by the crashing of the Wall Street in October 1929, immediately affected the output of industries such as construction, mining, shipping, agriculture, automobiles as well as other consumer durables (Anderson and James, 1980).
6 Pages(1500 words)Research Paper
Also, economists forecasted that the contraction is not permanent; however, the abrupt shifting has worsened the EU recession (Pylas & Rising, 2013). In world market, this may result to the withdrawal of investments and collapse in confidence. For instance, countries worldwide may withdraw their investments in Germany, as they believed that the latter’s economic frame is unstable, and would just compromise their own problem.
7 Pages(1750 words)Research Paper
Financial Recession
But, both the residents of Kingston upon Thames and London suffered a lot due to financial recession. Recession affects more on household types who are primarily reliant on savings for their income. This is mainly because of the interest rates have dropped.
4 Pages(1000 words)Research Paper
US Macroeconomic policy 2006-2008
US Macroeconomic policy 2006-2008 Rather than allow this bubble to fully unwind, the Fed created more asset bubbles, especially in housing, leveraged finance, private equity and asset-backed securities from 2006 till now. In 2007, the American economy began to slow significantly, mostly because of a real-estate slump and related financial problems, there were predictions that margin squeeze from high energy prices or a dollar shock could be crucial factors tipping US growing economy into a downturn.
7 Pages(1750 words)Research Paper
Fiscal or Monetary
olicy whereby policy makers were admonished to adjust the supply of money in the economy to achieve the purported goal of inflation and output stabilization (Mathai, 2011). At the time of writing the article, among the three principal entities of stable prices, full employment
1 Pages(250 words)Research Paper
The great depression
The causes which led to such a catastrophic depression include a decline in consumer spending, financial instability and panics such as the stock market crash and banking failures, the gold standard
5 Pages(1250 words)Research Paper
Policy Responses during the Great Recession
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
2 Pages(500 words)Assignment
Let us find you another Research Paper on topic The Great Recession and The Policy Response for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us