...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....
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...Neglect from banks and others also led to the Great Recession. The subprime mortgage crisis could have been avoided if accountants were more aware because large banks were violating regulations and concealing the investments that were unstable. Moreover, accountants did not recognize these violations, allowing banks to continue lending subprime mortgages. (Rosenberg 2). Greater awareness from the part of accountants would have prevented many bank failures. On the other hand, the negligence of the Federal Reserve in maintaining low-interest rates could have had been prevented by corporations themselves. Due to the bankruptcy of Enron in December 2001 due to bad management and greed, the Federal Reserve needed to add money to the economy by lowering interest...
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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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...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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...ended in May 27, 2012, an increase of 7% from $7.14 billion during the similar period last year” (Bloomberg BusinessWeek, 2012). The company reported net sales ending in a thirty-nine week period of $71.28 billion, “an increase of 10% from $64.75 billion during the similar period last year” (Bloomberg BusinessWeek, 2012). Many may wonder why Costco Wholesale Corporation is the leading wholesale business in the industry. To provide a good understanding of why Costco Wholesale Corporation is the leading warehouse distributor in the industry, this paper will help provide understanding by discussing strategic initiatives of the corporation and how they have to adapt to organizational and operational changes in the market. Through research, this paper will also provide understanding of how the corporation is prepared to adapt to changes in the market which are related to issues of economic trends such as economic downturn and recession. This paper will then proceed to discuss tactics that the company has implemented to achieve their...
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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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...Research Paper The Effects of the Great Recession on the Auto Industry Submitted by Luis A. Castro Prepared for Professor John Machnic BUSN 6120, Managerial Economics Summer 1, 2012 Section: OE Webster University July 24, 2012 CERTIFICATE OF AUTHORSHIP: I, Luis A. Castro, certify that I am the author. I have cited all sources from which I used data, ideas, or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. ____________ 07/24/2012 Signature Date Introduction The automotive industry in the United States is a key factor in economic growth because of the significant impacts on all major industries and cultures. Automotive industry is one of the largest industries in the United States. Historically, it has helped 3 to 3.5 percent of gross domestic product (GDP). It directly employs more than 1.7 million people who are involved in the design, manufacture and distribution of parts, components to install, sell and service the components. The industry of auto uses $16 to $18 billion annually for the research and development of the products. By excluding the automotive sector, it is difficult to determine the effects of global recession with in United States (Gereffi, 2005). Recently, if the analysis is done it can be clearly seen that the automotive industry has fallen on hard times. However, the U.S. continues to...
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...SERIES IZA DP No. 6057 PAPER The Global Economic Crisis: Long-Term Unemployment in the OECD P.N. (Raja) Junankar DISCUSSION October 2011 Forschungsinstitut zur Zukunft der Arbeit Institute for the Study of Labor The Global Economic Crisis: Long-Term Unemployment in the OECD P.N. (Raja) Junankar University of New South Wales, University of Western Sydney and IZA Discussion Paper No. 6057 October 2011 IZA P.O. Box 7240 53072 Bonn Germany Phone: +49-228-3894-0 Fax: +49-228-3894-180 E-mail: iza@iza.org Any opinions expressed here are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but the institute itself takes no institutional policy positions. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. IZA Discussion Papers often represent preliminary...
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...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 developing countries...
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...Research Paper Renieka Payne July 29, 2012 BUSN300—Mon 6-7 American InterContinental University Professor Zara Sette-Roach Certification of Authorship: I certify that I am the author of this paper and that any assistance received in its preparation is fully acknowledged and disclosed in this paper. I have also cited any sources from which I used data, ideas, words, either quoted directly or paraphrased. I also certify that this paper was prepared by me especially for this course. Research Paper The United States began its roots in domestic trade products in three different centuries. By forming thirteen farming colonies, the economies made a living in which they could survive. Though, in 1776 the colonies felt the need to join together to form the United States and thus became an industrialized world by manufacturing coal, iron, and oil (Chitwood, 1961). Over the centuries the United States has been able to maintain high wages for jobs because of their assurance materials and social principals. This paper will entail some trends, forecasts, and statistics for the expected growth rate of the United States’ gross domestic products (GDP). It will detail how the GDP is determined and how it can be interpreted. Every month the Bureau of Economic Analysis (BEA) updates the trend, forecasts, and statistics for the GDP. It announces the growth of the GDP and depicts how quickly the economy has flourished from the last quarter. The BEA suggests that the quarterly...
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...Economic Recession: Causes and Effects Student’s Name University Affiliation Economic Recession: Causes and Effects An economic recession is a slowdown in economic activities such as employment, distribution, production, real income and real GDP. The 2008-2009 economic recession was the longest in duration and deepest in contraction since the great depression of 1929-1932, (Roberts, 2009). Its causes were mainly preventable through a series of legislations and so it can be avoided in the future. This paper champions the thesis that the recent economic recession was largely avoidable, but the application of inappropriate economic strategies as presented below caused its occurrence, and has so far had overarching effects on the world. According to (Simpson, 2009), the recession was the direct and unavoidable result of the credit boom that preceded it. First, the credit boom was partly a result of low interest rates that lasted too long, facilitated by governments and their central banks. This resulted in the build-up of a credit bubble. Secondly, governments failed in the role of regulating the credit market. This encouraged borrowing of those who were least able to repay, resulting in an increase in demand of properties, (Bessler, Leatham and Zhang, 2006). Once demand had risen, property prices went up, attracting more investors into the market. Then the desire for profit was overtaken by the fear of loss as the market was flooded with...
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...economic recession that hit the world in 2007 resulted in global downsizing in many prestige organizations and its effects of workers productivity. This literature reviews focuses on affective organizational commitment among survivors of organizational restructuring and downsizing. It focused on middle level managers and employees in supervisory positions because survivors of this group are often called upon to assume expanded roles, functions and responsibilities in a post restructuring and downsizing environment. This paper also explores the impact of recession for those still in employment by looking at a key indicator of employee wellbeing, work pressure staff reductions and company reorganization both increase work pressure, as does current job insecurity. Other job changes, like large pay cuts, increases in responsibility, autonomy and monitoring also increase work pressure. Keywords: Recession, downsizing, layoffs, economic downturns, organizational behavior, commitment, motivation, loss and grief, leaders, employees, stakeholders. 2 INTRODUCTION The great recession of 2007 started on the month of December. National Bureau of Economic Research (NBER), the prestigious private research institute declared it officially. The government of US acknowledged the NBER's declaration, aware of the downfall since August 2007; the White House did not change its course on coping with the financial crisis. This was the third longest since The Great Depression. The Great recession...
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...2008 GREAT RECESSION COMPANIES WHO SURVIVED AND ALTERNATE METHODS TO EMPLOYEE LAYOFFS MGT 310-06 PROFESSOR CAS CASWELL BY DE’-LISA BARNES INTRODUCTION In 2008, the end of the first decade of the 21st century, the world market experienced the worst economic decline, known as the Great Recession. The overall impact was described as being the worst global recession since World War II. The precise magnitude and timing of the recession is widely debated and varied from country to country. The years leading up to the crisis were characterized by a highly excessive rise in asset prices, combined with a boom in economic demand, which inflicted a clear hardship for businesses and families. To further explain my research, this paper will focus on the following: What caused the great recession, Effects of the recent recession, Types of Businesses that survived the recession, Companies that hired during the recession, Companies that choose shared-worked programs over layoffs, Various states that participates in the work shared programs, and the Advantages of the work share program. WHAT CAUSED THE GREAT RECESSION The Great Recession actually began in December 2007, which is long before most people ever realized what was to soon transpire. Although there are many speculated factors or causes that led to the recession, the American people strongly believe that the following groups are responsible for the Great Recession of 2008: Government, Mortgage Companies, Banking...
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...through in order to survive during the recession. Research Paper Supervisor: Mrs. Gaitor Name: Ariana McWeeney Word Count : 2,518 Table of Contents Page Cover Page ………………………………………………………………. 1 Abstract …………………………………………………………………….3 Introduction…………………………………………………………… 3-4 Body ………………………………………………………………………. 5-14 Conclusion …………………………………………………………….. 15 Bibliography……………………………………………………………16-17 Abstract In this research paper I will be studying how Bank of The Bahamas continues to survive through the recession and the extents in which they went through in order to not suffer. The purpose of this research paper is to analyze the bank and the efforts they undertook to survive such a devastating time to the economy. The key resources used in this research paper was primary research in which I had an interview with the managing director of Bank of The Bahamas. In addition to that I’ve used reliable online articles and IB Business and Management textbooks to investigate this topic to my fullest extent. INTRODUCTION This investigative report will demonstrate the extents in which Bank of The Bahamas went through in order to survive during the recession. This topic interests me because the recession is impacting not only The Bahamas but also everyone around the world. Many banks and businesses have had to close but Bank of The Bahamas in particular went through many different extents to survive through the recession and continue to grow which is a remarkable...
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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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