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United States Housing Bubble
The housing bubble is a increase in housing prices caused by demand, speculation, and exuberance. A combination of low interest rates and a loosening of credit underwriting standards can lead to borrowers in the market, increasing demand. A rise in interest rates and tightening credit standards can lessen demand, which will cause the housing bubble to burst.
http://www.investopedia.com/terms/h/housing_bubble.asp
Deficit Area:Savings
Result
Video Link: https://www.youtube.com/watch?v=mFIKx-hWlZw -
Great Recession in the US
Global recession occurred during this time but hit the US especially hard because of the recent housing bubble in 2007. By the Department of Labor’s estimates, 8.7 million lost their jobs during that time. Unemployment rose to a peak of 10% in 2009.
http://stateofworkingamerica.org/great-recession/the-job-shortage/
Deficit Area: Budget
Result -
American Recovery and Reinvestment Act (ARRA) a.k.a - The Stimulus
The ARRA was created to save and make jobs. Its secondary purpose was to provide temporary relief programs for those that were hurt the worst by the recession, and to invest in infrastructure, education, and health. The estimated cost was initially $787 billion but has been revised to $831 billion.
https://www.learner.org/series/econusa/interactivelabs/economic-timeline/
Deficit Area: Budget
Fiscal Policy -
Obama Care
One major issue is that the individual mandate says all Americans who can afford health insurance have to obtain health coverage, get an exemption, or pay a fee. This creates an extra complication when it comes to filing taxes.
http://obamacarefacts.com/obamacare-pros-and-cons/
Deficit Area: Budget
Fiscal Policy -
Iraq War
The Iraq War is an economic disaster for the United States. The Iraq war cost America $2 trillion when they could’ve kept that amount of money and spent it on health insurance for the uninsured and they could’ve spent that money on reducing energy consumption in 1.6 million homes by 30 percent. The article says that because of the war in Iraq, Bush lost the economy around 1 million jobs.
http://www.alternet.org/story/79988/the_iraq_war_is_killing_our_economy
Deficit Area:Leadership
Fiscal Policy -
Trans-Pacific Partnership Agreement
The TPP is a Free Trade Agreement between many Pacific nations and the US, meant to end over 18,000 tariffs. The final proposal was given in February 2016 however has since been withdrawn by President Trump in January 2017. It was projected to increase income by .23%, employment by .07%, exports by 1% and imports by 1.1%, thus slightly alleviating our trade deficit.
http://www.bbc.com/news/business-32498715
Deficit Area: Trade
Monetary Policy
