...to the National Bureau of Economic Research, the start of this last recession was in the December of 2007 and ended in June of 2009 (The Greek, 2010). Many Economists point towards the failure of the banking system and an overload on bad loans that caused the financial meltdown, affecting the rest of the Economy. Whatever the cause of the recession, the effects are clear to see. Labor productivity in durable goods, non-durable goods, and retail have been negatively affected. This paper provides a look at the drop in productivity of the American worker. The statistics for this paper is mainly provided by the Federal Bureau of Labor Statistics (BLS). In this paper, and according to the BLS, labor productivity is measured by the output of goods and services produced per hour. Additional inputs from experts in each industry’s field will explain the direct causes of lower productivity. The baseline reference used in this paper comes from the BLS's change in labor productivity studies from the years 2006 to 2007, 2007 to 2008 and 2008 to 2009. The productivities of goods used in measuring labor productivity are wholesale trade goods and retail trade goods. Wholesale trade goods consist of durable and non-durable goods. Durable goods include such items as vehicles, vehicle parts, furniture, lumber, construction supplies, commercial equipment, metals and minerals, and other miscellaneous durable goods. Non-durable goods items include paper products, chemicals, farm products...
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...The Federal Reserve Response to the Recent Recession Rahman R. Funn Webster University BUSN 5620 [ July 23, 2012 ] Ms. Lynn Bailey Abstract This term paper examines the history of the Federal Reserve System and takes a look at what causes a recession and how the FED responded to the most recent one. A recession can cripple a nation if not handled properly. With this paper, I explain how necessary interest rate cuts, the purchase of bonds and mortgage backed securities, and company bailouts were needed to prevent a second Great Depression. These actions will result in the United States creating low, short term-interest rates (near zero) through 2014. The Federal Reserve Response to the Recent Recession This paper examines the history of the Federal Reserve (FED) and how they responded to the recent recession. The goal of this paper is to give the reader insight on the history of the Federal Reserve System and how it was formed. The reader will gain knowledge of what a recession is and how the FED responded to the recent one. The data used for this paper consist of a literature review of articles from the internet websites of NY Times, Federal Reserve. History of the Federal Reserve System (FED) The Federal Reserve System, commonly known as the FED, is the central bank of the United States. Congress established this bank (signed off by President Woodrow Wilson)...
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...FISCAL POLICY IN GERMANY AND IN GREECE DURING THE RECESSION IN 2008-2009 By Mohammad Waqas Approved _________________________________________ (……………………………..) A thesis submitted in partial fulfillment of the requirements for the degree of Bachelors of ……. May 2011 Abstract Recession has been a highlighted feature of the world economy over the past few decades. Recession has added importance to the discretionary fiscal policy because monetary policy and automatic stabilizers could not pull back the economy from recession on their own. The case of EU countries is of great significance in times of recession because of certain common policies which the member states have to follow. The research is theoretical in nature synthesizing previously done studies in the same field. Fiscal policy in Germany and Greece during the recession in 2008-2009 is being analyzed to come up with the better policy measure. TABLE OF CONTENTS Abstract……………………………………………………………………………….3 TABLE OF CONTENTS………………………………………………………….….4 1.INTRODUCTION ………………………………………………….………………5 2. OVERVIEW………………………………………………………….…………….9 3. RECESSION IN EUROPE 2008-2009…………………………………………..11 3.1. Recession in Greece………………………………………...…………...…..13 3.2. Recession in Germany……………………………………...…………...…..17 4. EU FISCAL POLICY………………………………………………………....….20 5. POLICY TOOLS………………………………………………………………….23 6. FISCAL POLICY IMPLICATIONS …………………………………………….25 6.1 Greece ………………………………………………………………………..25 6.1.1 Pre Crisis...
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...The Role of Policy in the Great Recession and the Weak Recovery John B. Taylor* February 2014 It’s been nearly five years since the recession of 2007-2009 ended. By all accounts, this very severe recession was followed by an extremely disappointing recovery. Economic growth during the recovery has been far too slow to raise the employment-to-population ratio from the low levels to which it fell during the recession, or to close materially the gap between real GDP and potential GDP, in marked contrast to the rapid recovery from the previous severe recession in the early 1980s or from earlier severe recessions in U.S. history. When you include both the periods of the recession and the slow recovery, economic instability has more than tripled according to a common measure of performance used by macroeconomists: The standard deviation of the percentage gap between real GDP and potential GDP rose from 1½ percent during 1984-2006 to 5½ percent during 2007-2012 (Taylor, 2013). In this paper I consider the role of economic policy in this poor economic performance. I. The Shift in Policy In evaluating the role of policy it is important to consider actions taken before, during, and after the financial panic in the fall of 2008. A careful look at the full decade from 5 years before to 5 years after the panic reveals that there was a significant shift in policy away from what worked reasonably well in the decades before. Broadly speaking, monetary policy, regulatory policy, and fiscal policy...
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...Birmingham, AL Instructor: Dr. Lisa Kincaid Research and Communication- RES 531 April 18th, 2010 Context of the Problem Today the economy is at its worst than it’s ever been before since the 1940s. Unemployment is at a record high as well as companies that are continuing to close down due to financial issues. The housing markets, auto industry, banking industry, & loss of jobs are all major things that are being affected by the way the US is spending money. The housing market and banking industry are both some of the main things that are having a major affect on the U.S. and to how this affects all other aspects of daily living. Some people may ask, “How did we get this way”? Over the past 180 years the United States grew to a huge, integrated, industrialized economy that makes up over a quarter of the world economy. The main causes were a large unified market, a supportive political-legal system, vast areas of highly productive farmlands, vast natural resources (especially timber, coal and oil), an entrepreneurial spirit, a commitment to investing in material and human capital, and at times a willingness to exploit labor. In addition, the U.S. was able to utilize these resources due to a unique set of institutions designed to encourage utilization and extraction. The economy has maintained high wages, attracting immigrants by the millions from all over the world. In the 19th century, recessions frequently coincided with financial crises. Because...
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...Paper Outline I. Section 1 a. How have social enterprises fared better than their for-profit rivals during the recession? b. What aspects of the way the businesses are run have made them more successful (if using profit as the measurement of success)? c. How have they continued to attract customers to their shops despite falling numbers of patrons during the recession? d. To what measurable extent has the recession impacted their business? e. In a broader sense, are mutuals more competitive in their sector/industry by virtue of containing positive aspects falling into one of the questions above? II. Section 2 III. Section 3 Section 1 How have social enterprises fared better than their for-profit rivals during the recession? The economic recession has had a negative impact on the performance of most businesses in the UK. However, this appears not to be the case with social enterprises. During the recession, most social enterprises seem to be growing and have reaped more benefits as they seek to achieve their goals. Social investment has remained vibrant even in the face of the economic recession. Unlike the for–profit enterprises, social enterprises derive their capital and labour for philanthropic, government and commercial bodies. This means that social enterprises have a great pool, of investors as well as a greater capacity to attract talented and more skilled labour. Legal structures in the UK have been reformed...
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...2008-2009 Economic Crises Name: Institution: Introduction In economics, a recession refers to a business cycle reduction. It refers to a general retardation of economic activities (Simon, 2001). Macroeconomic pointers like gross domestic product (GDP), investment spending, employment, capacity utilization, household income, inflation and business profits fall. This happens while unemployment and bankruptcies rates go up (Andrews, 2009). Recessions crops up when there is a general drop in expenditure. It follows the rising of an economic bubble or an unpredictable supply shock. Governments respond to recessions through implementing expansionary macroeconomic strategies. They tend to raise the government’s expenditure, increase money supply and lessen the amount of tax paid by the citizens (Andrews, 2009). In 2007, a global financial predicament rapidly metamorphosed from the bursting of the property bubble in the United States to the most horrible recession ever witnessed on the planet. This paper will research on the causes of the 2008-2009 economic predicament and the policies executed by various key people liable for saving the U.S. economy. It will also explain the task, constitutional authority, and the policy view of some current holders of key positions that set policies for saving the U.S. economy. In 2007, a worldwide economic predicament spread its gloom on the financial outcomes of several nations (Simon, 2001). It ended with what was often termed as the worst...
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...value of a good introduction to your research paper? 3 Purpose • What is the value of a good introduction to your research paper? To grab the reader’s attention? 4 Purpose • What is the value of a good introduction to your research paper? To provide an overview of what is to come? 5 Possible features of introductions • • • • • • • • Statement to generate interest Relevant background information Definition of key terms Main purpose/argument of the paper Mention of mainly referenced authors Indication of research methods and results Indication of the viewpoint taken The structure/organisation of the paper 6 Example sentences “A recession is a temporary decrease in trade and industrial activity. In this paper, the common specific definition of a fall in GDP in two successive quarters will be used.” Statement to generate interest Relevant background information Definition of key terms Main purpose/argument of the paper Mention of mainly referenced authors Indication of research methods and results Indication of the viewpoint taken The structure/organisation of the paper 7 Example sentences “A recession is a temporary decrease in trade and industrial activity. In this paper, the common specific definition of a fall in GDP in two successive quarters will be used.” Statement to generate interest Relevant background information Definition of key terms Main purpose/argument of the paper Mention of mainly referenced authors...
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...Stimulus Act of 2008 generate the desired effects” An economic stimulus package, by definition is designed to stimulate a nation’s economy; therefore by its definition a nation should expect a decrease in unemployment rate, an increase in gross domestic product demand, and an increase on investments; consequently a nation’s overall economic growth. In 2008 and 2009, different types of economic stimulus packages were introduced, all with the purpose of averting an economic recession. My argument in this paper is that the Bush Administration bailouts and tax rebates did not stimulate the United States economy in the long-term. The Bush administration argued that by moving from a fairly free market approach position to a more governmental intervention approach, the nation was going to be able to avoid the perceived economic recession. In my research paper I will be examining the reasons why the two most important components of the 2008 stimulus act did not generate the desired effect of stimulating the United States economy in the long-term. Secondly I will be analyzing the idea of how numerous large institutions in the United States are governing the nation not just economically but politically and how by adopting a free market policy approach could be more beneficial for the economy. Lastly, to support my argument I will be providing prevailing empirical evidence of how a free market economy is more beneficial for an economy’s long-term prosperity. In 2008 the United States...
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...major focus on this paper, an overview of personal review of consumer bankruptcy helps in understanding, bankruptcy trends in both United States and Canada. Every year, over 100, 000 Canadians usually file for a consumer proposal or personal bankruptcy. In 2013, close to 120,000 Canadians filed for a consumer proposal and bankruptcy (Modest Money. 2014). While the percentage of personal bankruptcies dropped by 3 percent, the number of consumer proposals increased by 5.5 percent. This rise in the number of filing for debt relief illustrate a long term trend about the increasing number of Canadians whose debt has grown faster than their earnings. Statistics Canada report revealed that...
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...Abstract This paper analyzes the demand of Information Technology during different market conditions. This paper discusses the role of IT and its significance in the current world. It also discusses various market conditions that prevailed over the last few decades and their impact on IT. This paper mainly focuses on the recent recession and how is IT impacted and transformed during these conditions. Having discussed the history of IT in different market situations, this paper throws a light on future conditions and growth in the field of IT. DEMAND ANALYSIS OF IT IN DIFFERENT MARKET CONDITIONS Introduction Demand is an economic principle that tells us about consumers' want, readiness and their capability to pay a price for a specific good or service. It is a common belief that greater the demand, greater is the price of a good or service. But, what leads to the demand of a particular good/service is a complex analysis and is different for each good/service. Any business, before development or expansion, studies the demand for its product. This study of demand is a complex process. Based on this demand analysis report, a firm leadership would decide on extension or starting of the business. The demand analysis might help determine or justify a desire for expansion in a particular sector or just to assess the health of a particular sector. Even though the demand analysis procedure is performed differently based on the type of business or study, participants...
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...decision-makers and get along better with co-workers. They also have fewer absentee, late, and sick days than people who aren’t having fun” (Rau-Foster, 2000). Explanation CNN Money has ranked Google as #1 for the “100 Best Companies to Work For” for 2013. Why is this? In 2006, Genentech a company that makes medicine that fights cancer, was ranked #1. Employee’s working for Genentech stated, “What’s better than being a valued member of a cancer-fighting team? Having a great time while you’re at work” (CNN Money, 2006). This company had a 5 percent turnover rate and 20 percent job growth. Now remember the year 2006! Google was on the bottom of this list in 2007. This leaves many people wondering how Google climbed its way up to the top. What research has found is that Google is a Silicone Valley Company that is now setting the standards on having fun in the workplace. They offer free meals, swimming, spas and free doctors onsite. They have three wellness centers and a group of other activities. Google has been ranked #1 four times. From the year of 2006 to 2012...
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...Bank notes PREM AUGUST 2009 N U M B E R 141 ECONOMIC POLICY The Global Financial Crisis: Comparisons with the Great Depression and Scenarios for Recovery Milan Brahmbhatt (PRMVP) and Luiz Pereira Da Silva (DECVP) A recent paper by Eichengreen and O’Rourke on “A Tale of Two Depressions” (publicized by Martin Wolf in the Financial Times) has highlighted some close correspondences between economic performance during the present world recession and that during the early months of the Great Depression that began in late 1929.1 World industrial production from April 2008 to April 2009 fell as rapidly as during the first year of the Great Depression, while stock market prices and world trade volumes have fallen more rapidly than in the comparable period. These comparisons lead Eichengreen and O’Rourke to draw the alarming conclusion that “[I]t’s a Depression alright.” They note, however, that fiscal and monetary policies are likely to be much more supportive of economic activity in the next 1–2 years than they were during the first few years of the Great Depression. The first part of this note outlines some other important structural differences between the world economy today and in the 1930s that are likely to affect how the present recession plays out relative to the Great Depression. The second part of the note discusses possible recovery paths out of the current crisis. 1. Comparing the Great Depression with the Present Global Financial Crisis Larger role of faster-growing...
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...By Prof. Dipika Lecturer in P.G. Dept. of Commerce K.L.S.D. College Ludhiana Global Recession and Impact on Various Sectors of Indian Economy ABSTRACT The word 'Recession' denotes a temporary period of economic decline during which trade and Individual activities are reduced. Till date, the world has witnessed a number of economic recessions that brought the trade market to a standstill and left the economists and analysts with valuable lessons to be learnt for future. Globalization and liberalization have contributed a lot in making the entire world a close knit economic unit. In an interconnected global economy recession and economic turbulence in one part of the world has the potential to disrupt the economies of other countries in a major way. The economic slowdown in US economy in 2008 caused by the burst of housing bubble engulfed the entire world in its grip. This research paper aims to give a detailed account of US Recession-2008 and its impact on Indian Economy. The financial crisis has not only affected United States of America, but also European Union, U.K and Asia. The Indian Economy too has felt the impact of the crisis to some extent. Though it is difficult to quantify the impact of the crisis on India, it is felt that certain sectors of the economy would be affected by the spill over effects of the financial crisis. INTRODUCTION The current global financial crisis is rooted in the subprime crisis which surfaced over a year ago in the United...
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...Running head: CAUSE OF ECONOMIC CONDITIONS IN THE UNITED STATES AND THE UNETHICAL BUSINESS THAT LED TO IT Final Paper James Smith Hodges University GEB/PAD 6376 Dr. Forrer Week Due: 14 Due: 08/14/2011 Submitted: 08/10/2011 INTRODUCTION (Part 1) Why has the unemployment rate been above 12 percent for the last several years? Why have so many prior successful businesses closed in the last four years? Why have so many major corporations and publicly traded companies filed for bankruptcy? Why did a house that used to cost $200,000.00 just sell for $40,000.00? Why are foreclosures at the highest rate in US history? Maybe the question to ask is what has caused all of this? There are so many questions to be answered when it comes to the economic conditions in the United States. How did it get into the current condition? What were the signs of slipping into the crisis (economic indicators)? Whose actions were responsible? Was the responsible party also guilty of unethical behavior (big issue) or was it accidental. How long will it take for the economy to get back to being productive? In the past, America has been a very productive, successful country. There have been other recessions and a depression that have affected the U.S. but for some reason this current crisis was started by a completely different chain of events. What was the chain of events that triggered this current...
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