Journalism - The Economic Crisis - Research Paper Example

The people I interviewed gave varied responses to the causes of the economic crisis but from the interviews it was clear that it affected people’s living standards since inflation hit hard ion people s pockets and they could no longer live the way they used to do before. People feel that the economic crisis was caused by the debts that most people in the United States live with. The rate of profit of the economy had fallen and this meant that there was a high rate of inflation. Businesses were forced to adjust to the crisis by laying off workers so that they could continue being in existence.

The rate of unemployment also increased as a result and this meant that the unemployed people could not get money to meet their daily needs. The decline in profits cased investments to reduce and since the economy depends on returns from business, the economy was set on the crisis. Other people feel that mortgage lending caused the economic crisis since the cost of housing increased significantly during the crisis. This is because people had to pay a lot of money for their housing units and they were left with little money to meet their other needs.

People feelings about the economic mess are varied but most people feel that it ruined the lifestyles as they had to budget their finances so that they could be able to survive with the money they had. . The crisis caused people to move in to smaller houses since paying mortgages was expensive as interest rates were on the all time high and paying them was a task. People feel that the government is to blame for the crisis since it did not set the necessary policies to see that the value of the dollar is maintained.

The government did not respond to crisis early enough as if it had it would have set out policies that would ensure that interest rates are at a good enough level to further development. People are dependant on credit and when the interest rates are too high, it means that they will not be able to get credit at reasonable interest rates hence levels of poverty will increase. Had the government ensured that interest rates were at a fair rate, it would make people get more credit and use it for their own development and for that of the country.

People feel that government spending also had a great role to play in the crisis the economy was so much in debt and the high rate of inflation meant that more money had to be used to pay the debt. The government spent a lot of money on the war against terrorism and there was no money being injected into the economy from the war. The cost incurred during the war depleted the economy of funds, which could be used for development purposes. Everyone was affected by the crisis and people complained on the adverse effects it had on their daily routines.

There were high rates of unemployment since businesses could not employ people due to the decreased levels of profit. Those who were lucky to get jobs had to work on two or more jobs since they could not get enough from one job. Since the cost of gas also increased people’s travelling habits also