The Impact Of The Great Recession

Submitted By Patrice-Douglas
Words: 5270
Pages: 22

Note to evaluator: The numbers next to each in-text citation are a reference tool, they represent where each source lands on the list in my annotated bibliography.
The American economy is in dire straits from the collapse of the housing, banking, and automotive industries. The steep decline in economic activity during the late 2000s, is generally considered the largest downfall since the Great Depression. The term “Great Recession” applies to both the U.S. recession – officially lasting from December 2007 to June 2009 – and the ensuing global recession in 2009. The economic slump began when the U.S. housing market went from boom to bust and large amounts of mortgage-backed securities and derivatives lost significant value. In order to revive these three industries the US government made and continues to make some tough decisions. From stimulus packages to government budget cuts, balancing the United States economy is no easy task. A lot of time, money, and sacrifices will be made by the American people in order to come out of the financial hole that this great nation is in. There are many measures that government has made to help America climb a huge debt mountain. For starters, President Barack Obama passed the Recovery & Reinvestment Act. The Recovery Act was the boldest countercyclical fiscal stimulus in American history. It included $787 billion in tax cuts and spending, with the total split roughly one-third tax cuts, one-third government investments, and one-third aid to the people most directly harmed by the recession and to troubled state and local governments. This stimulus package provided a lot of financial relief for American Families, including unemployment insurance and $200 Billion in tax cuts. The Administration also worked to stabilize the housing market and slow down the rising pressure of foreclosures. The Treasury worked with the Federal Reserve to help reduce mortgage interest rates, resulting in reduced payments for the millions of Americans who refinanced their homes. The government also set up a program that helped responsible homeowners facing foreclosure get more manageable mortgage payments. Already more than a million homeowners have gotten trial modifications, and the administration is working to improve the program so that more troubled homeowners qualify and that more of the trial modifications turn into permanent ones. The Recovery & Reinvestment Act provided a boost to our economy and great relief for the American people. Although the stimulus package has aided in economy regulation, it is not enough to pull the nation out of debt. Because of the Recovery Act the United States economy is much better, however, the American people must understand that in order to come out of debt we will have to make some harsh cuts to the national budget. Making cuts to the national budget will directly affect American’s livelihood but, is absolutely necessary. Out of all of the United States it is my belief that no other area will be more affected by sequestration (federal budget cuts) than the Nation’s capital. Washington DC is the nation’s capital making it the hub for all government and political affairs. Because of sequestration the DC area job market has become very competitive. As a Washingtonian I believe it is imperative that we find a way to deal with sequestration while still maintaining a healthy job market. Research suggest that the three most effective solution to ease the competitiveness of the Washington DC job market are: On the job training for non-degree holders, Pay cuts instead of layoffs for federal employees, and giving employees the option to telework.
The US recession meant that government workers in the metro DC area were laid off for months. The huge government furlough made DC’s job market two times more competitive than the norm. Washington DC has one the highest unemployment rates in the nation; according the Bureau of Labor & statistics DC has an unemployment rate of 7.4% as of