In 2008 was the Great Depression, this was the last time the United States had a recession. This was the worst recession since the Depression in 1929. This recession was the longest lasting recession, a total of 18 months. "It was caused by the Y2K scare, which created a boom and subsequent bust in Internet businesses" (How the 9/11). This recession lead into the country’s financial crisis. Financially, businesses collapsed. This was a huge meltdown for the United States, we called this recession the “Great Recession”, it affected each and everyone so quickly. As a country recessions are hurtful to the economy. Recessions are identified as a decline in activities dealing with the economy. Citizens across the country were affected tremendously. …show more content…
Our nation circulates around money. Without having money, as a country it is difficult for things to flow as we would like them too. One of the effects of a recession could be lower wages. Employed workers would notice a wage cut. In order for the government to save money somewhere money spent has to be taken away. But by doing so, workers as consumers won't have any spending money to spend and there will be no money generating in the economy. There would be no investments being made and no stocks being bought. The beginning of any recession is a decline in a countries GDP. GDP stands for our gross domestic product. "Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period" (Gross Domestic). When one thing isn't going as plan or how it's suppose to be, there is a domino effect. A recession is an example of that. Because a recession causes for businesses to fail, the businesses then proceed to lower wages. Lower wages are just the half of it, businesses will the start letting people go. The unemployment rate begins to increase. The way our economy works as if it was a chain. Everything is linked in some way shape or …show more content…
A decline in GDP will cause the unemployment rate to rise quickly. This is because some firms will go bankrupt and all workers will lose their jobs. The workers will lose their jobs because there will be no money coming into the business. Businesses will cut back on hiring new workers because they would not be able to pay them. Without having jobs, individuals are not able to support their families. Things would get so bad that the outcomes would cause them into losing not only their jobs, but their homes and cars. During a recession while everyone is affected, they are not affected equally. Unemployment often affects young people the most because the firms already have enough workers and they can't afford to hire new workers. The younger ones such as teens will not have the opportunity of making money for their own, but having to depend on their parents who not making enough as is. The more people that are unemployed the less businesses will make. It would be a major drop on consumer spending because people don't have the money to spend once they are unemployed. When businesses make less money and aren't bringing in enough money they tend to lay off a lot of workers. When businesses lay off workers the unemployment rate increases even