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Are we in recession and what effect will it have on the middle class - Research Proposal Example

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RECESSION The proposed report will explore the question of whether the recession in the US is really over, and if so, what its effects have been on the middle class. The role of the impacts of taxes and credit limitations on consumers is also a major factor in the current situation that the US middle class is facing…
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Are we in recession and what effect will it have on the middle class
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Are we in recession and what effect will it have on the middle class

Download file to see previous pages... This shows how many factors can work together to create a holistic idea about the current state of the economy. Many look to the mortgage industry and its impact on financial sectors for a more specific answer. The mortgage industry is currently affecting the consumer and banks in complicated ways. There is a lot of media coverage about it and there is at times the atmosphere of panic, with economists over-valuing the impact of the current mortgage industry and also predicting things that are in no way true. However, a recession is denoted by six months’ continuous drop in GDP, whereas the GDP has actually grown in recent quarters. Therefore, the impact on the consumer may be over-valued, but in any case, the recession has left lasting effects. “Home prices are now deflating at a 32% annual rate versus 8% six months ago. And the deflation is sure to intensify as the 4.6 million new and existing homes still sitting on the market find a clearing price” (Up, 2010). The mortgage industry currently also affects other zones of enterprise other than the middle class consumer, such as financial intermediaries including commercial banks. ...Download file to see next pagesRead More
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