Characteristics Of A Recession The Great Recession

The Great Recession was a hard time for most of the country. The economy had dropped so low that it was the largest drop since the Great Depression. People were not only losing their jobs but also their homes due to the fact that they could no longer afford their payments. People cut back on spending all together and in turn that affected a lot of businesses. Characteristics of a recession are defined as by the U.S. Bureau of Labor, â€Å"A general slowdown in economic activity, a downturn in the business cycle, a reduction in amount of goods and services produced and sold† (U.S. Bureau Of Labor). This hard time for millions of Americans lasted for 18 months and it created a lot of damage and that is why it has been deemed ‘The Great Recession’. Our country may not be considered in a state of recession any more but people are still being affected by this and are slowly trying to be back on their feet. Starting back from the very beginning, before the crisis hit rock bottom, the real problem started in the late 1990’s when the government stressed the importance of national homeownership. People were starting to take out loans and purchase homes in the early 2000’s because the qualifications weren’t as strict as they had previously been. According to an article on businessweek.com, â€Å"It promoted paper-thin downpayments and pushed for ways to get lenders to give mortgage loans to first-time buyers with shaky financing and incomes† (Coy). This had a lot to due with the fact thatShow MoreRelatedA General Slowdown In Economic Activity, A Downturn In1664 Words   |  7 Pageslisted here, are characteristics of a recession. A recession has a domino effect, where increased unemployment leads to less growth and a drop in consumer spending, directly affecting businesses, which lay off workers due to losses. A recession occurs when there are continuous (two or more) quarters of negative gross domestic product growth (GDP). In plain english this means, that economic growth slows down during a recession. Data showing an economy experiencing a period of recession include a fallRead MoreThe Impact of the Great Recession on Workplace Stress1097 Words   |  5 Pagesof their support networks. Who paid the final price? Companies cut costs through pay cuts, layoffs, and closings. While this may have saved jobs for many, the feeling of loss and vulnerability permeated corporate American in all ranks. The Great Recession was a rude awakening for those living the American Dream at the turn of the century. The 2000’s were the new 80’s, but for all. People lived off credit, borrowed time with Home Equity Lines of Credit and lived through every cent they made. Read MoreThe Rates Of 2007-2009 And The Inflation From 2002-20071176 Words   |  5 Pagestime which leads to inflation. There are also decreases in the general price level of goods and services in an economy over a period of time. A peak in the business cycle is a temporary high point. A macro setback called a recession, or contraction follows each peak. A recession is a downturn in the business cycle during which real GDP declines, business profits fall, the percentage of the workforce without jobs rises, and production capacity is underutilized. An expansion is an upturn in the businessRead MoreEconomic Development Of A Country1027 Words   |  5 Pages(Miller, 2012). The development of a country is based on many characteristics, such as the average income per capita, level of education, the death rate every year, the population health, and many more, but the most important characteristic is the economic activity of a country, therefore it should be promoted over any type of characteristics. Fiscal policy is a very important part of the economic. 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