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Great Recession of 2007-2009
Longest recession since WWII, GDP dropped 4.3% from its peak in 2007. Unemployment rate in 2007 was 5% and peaked at 10% in 2009. Home prices fell 30% and the United States enacted fiscal stimulus programs that used different combinations of government spending and tax cuts that included programs like the Economic Stimulus Act of 2008 and the American Recovery and Reinvestment Act of 2009.
Deficit Category - Budget
Result
http://www.federalreservehistory.org/Events/DetailView/58 -
U.S. Trade Deficit (Result,Trade)
The United States has been running a trade deficit at least since the early 1990s. In 2007, the U.S. ran a trade deficit of $708.5 billion. The U.S. has sold more assets to foreigners than it has purchased from them and so has been borrowing from other nations since the 1990s in order to finance the trade deficit.
http://www.frbsf.org/education/publications/doctor-econ/2007/june/trade-deficit-exchange-rate/ -
Bush Administration (Result, Leadership)
The Bush Administration’s spending and lack of focus sent the American economy into a spiral all the way up until the end of his second term in 2007. Pouring money into the Iraq War and failing to educate engineers didn’t prepare the U.S. for global interactions.
http://www.vanityfair.com/news/2007/12/bush200712 -
Government Interventions (Budget, Result)
Quick decisions were needed to be made about the economy in order to avoid another depression. In order to make that happen Government interventions were needed. They did this by loan tightening, returning credit risks to normal, boosts in jobs, and many other things. Everything they did helped the economy grow again.
https://www.americanprogress.org/issues/economy/news/2012/05/29/11593/10-reasons-why-public-policies-rescued-the-u-s-economy/ -
Aftermath of Great Recession (Result, Budget)
Began in December 2007 and ended in June 2009 and five years after emerging from recession, the best metrics of economic health suggest the economy is only between one-third and half of the way to fully recovered. Employment fell 6.3% and 11 million jobs were needed to restore the job rates and today we have only improved by 4million and still need 7 million more jobs.
Time range or date- 2014
http://www.huffingtonpost.com/andrew-fieldhouse/five-years-after-the-grea_b_5530597.html) -
Savings Bond (Result and Savings)
The amount of money American people are saving has been steadily declining since the 1980’s and has been hovering around zero since 2004. America’s very low saving rate is a factor to why the economy isn’t doing as well as it should. http://www.concordcoalition.org/iousa/americas-four-deficits
