...they found themselves without lines of credit, lack of business, and the daisy-chain collapse of their support networks. Who paid the final price? Companies cut costs through pay cuts, layoffs, and closings. While this may have saved jobs for many, the feeling of loss and vulnerability permeated corporate American in all ranks. The Great Recession was a rude awakening for those living the American Dream at the turn of the century. The 2000’s were the new 80’s, but for all. People lived off credit, borrowed time with Home Equity Lines of Credit and lived through every cent they made. As people felt corporate American tightening its belt, that belt became a noose around America’s neck. In a 2009 “ABC News/Washington Post poll, 61 percent of Americans said the economy is causing stress in their lives; a third said the stress is "serious." And those who said they've been hurt "a great deal" by the recession reported stress levels more than double those who said they were just "somewhat affected" by the recession.” (ABC World News with Diane Sawyer, 2009) People’s stress level directly correlated to the responses of businesses to the Great Recession. This was felt either through direct job loss or by knowing someone affected. People who otherwise felt comfortable and lived within their means were now feeling fearful of the future. Maslow’s hierarchy of needs was flipped around as people tumbled down...
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...Analysis 3 The impact of the Great Recession on Workplace Stress Saint Leo University Dr. Webster Baker MBA 530 – Organizational Behavior Overview The greatest downturns of the economy collapsed many industries in the period of the great recession. People found themselves with lack of job security, expensive educational system, and undervalued house price (Nelson & Quick, 2013, p.270). This negative behavior of the economy leads businesses to be tough in such cases. Furthermore, companies reducing costs strategy affected on the employees mind negatively (Nelson & Quick, 2013, p.270). The emerging effect of the high recession caused people’s stress level much higher. The negative responses of organizations like declining number of employees, lack of management support, decreasing compensation plan, holding same salary structure have created work related stress among the employees in the period of recession (Nelson & Quick, 2013, p.270). The great recession to be enhanced demands on the employees which in turns declined employee’s recreational time that created bitterness in the working place. The employers of the companies were running out of solutions at that tenure of recession. Many laws like Yerkes-Dodson law can be helpful to understand the impact of the great recession on people’s stress levels at work. Although, economic recession is a regular phenomenon in the economy that does not mean employees have to take the stress against the recession all the time...
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...Lehman Brothers and the Impact to the Great Recession The question before me is if Lehman Brothers had been bailed out and not allowed to fail and declare bankruptcy, would it have prevented the Great Recession. My answer based upon my reading and research would lead me to the conclusion of no it would not have prevented the Great Recession. However, their failure did have an impact on the Great Recession. Lehman Brothers filed bankruptcy in September of 2008. It was the largest bankruptcy in the history of the United States (MacEwan and Miller, p.110). They were the fourth largest investment bank in the nation and had been in existence since 1850. Their collapse was the result of being heavily invested in the subprime mortgage market that was a major factor in the US housing bubble. Prior to Lehman Brothers failure, there had already been a bailout by the US government of another large financial institution, Bear Stearns. The bailout involved the Federal Reserve insuring J.P. Morgan Chase against loses of up to $29 billion on the “ill liquid” assets it was obtaining in the purchase of Bear Stearns. This was the beginning of the bailout of the financial sector by the federal government and would reach unprecedented levels by the end of 2008. Ben Bernanke, the chairman of the Federal Reserve, justified these actions to Congress with an argument that had Bear Stearns been allowed to fail, the result would have been chaos and would not have been limited to...
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...Impact of Recession on Disabled Workers The timetable for the Great Recession started in December 2007 and officially ended in June 2009. Jobs lost during this time span totaled over 8.4 million and is considered to be the largest loss of jobs in the history of recessions in the United States. (Mishel, Bivens, Gould, & Shierholz, 2012). Job markets across the board suffered incredible job losses. The recession did not discriminate between workers with disabilities and those without disabilities. Both sectors lost jobs in unprecedented numbers (Fogg, Harrington, & McMahon, 2010). According to Fogg, et al, as a percentage, workers with a disability had a 5% higher unemployment rate than workers without a disability. There are two major reasons for this disparity which affected workers with disabilities during the Great Recession. Education Levels Education levels played an important role during the Great Recession. Workers with higher levels of education were less likely to experience the effects of unemployment and this was also the case with disabled workers. Disabled workers with a degree in higher education suffered less unemployment than disabled workers with only a high school education. Although higher education levels gave some cushion for workers with disabilities the cushion was less likely to occur than with workers without a disability (Fogg, et al, 2010). Across all educational levels of workers those with a disability saw a higher level of unemployment...
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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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...IBUS 750-Exploring Global Business May 31, 2014 Economic and Social Challenges in the United Kingdom and Their Impact on Business. The Great Recession was a crisis that affected economies worldwide. During this time, some countries only experienced small declines in Gross Domestic Product (GDP) and declines in international trade while others experienced more severe repercussions such as increased unemployment rates, economic decline, increased poverty populations, higher crime rates, and other calamities. These challenges have caused the demise of businesses, mass employment layoffs, and a decreased ability to take financial risks across the world. Many countries and businesses are continuously struggling to rebuild their wealth and prevent major financial losses from occurring in the future. As a result of this crisis, the United Kingdom faced economic disparities due to a persistently high unemployment rate, stagnant economic growth, and excessive government borrowing. These factors have resulted in social and economic challenges that affect various businesses attributes including reduction in wages, availability of mortgages, talent constraints, global talent acquisition efforts, the need for innovation, global expansion, and an increase in self-employed individuals. The Great Recession had a major impact on the United Kingdom. One of the most detrimental affects of this crisis was the rise in unemployed citizens across the nation. Due to...
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...The social views and economic policies regarding the standard of living for Americans in the 1920s directly led to the Great Depression, which was extremely similar to the economic policies which led to the Great Recession in modern times. In this paper, I will be comparing and contrasting both of these major events. Firstly, I will be comparing and constrasting economic policies. Secondly, I will be comparing and constrasting social views. Thirdly, as well as lastly, I will be comparing and constrasting consquences. First off, the Great Depression and Great Recession had econonomic policies. The Great Depression had a severely negative impact on society as a whole. According to Better Homes Movement by Commerce Secretary Herbert Hoover,...
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...E-commerce Executive Summary: E-commerce is one of the most progressive sectors of the economy. E-commerce has had powerful impact on all the macroeconomic sectors. It is redefining business processes and consumer expectations. The internet backbone of e-commerce is connecting every vendor in the world to every buyer across the globe. Advent of mobile devices has made the whole process even more interesting. E-commerce has done really well in its own right during the course of its conception as an industry. The growth rate have been continually rising against traditional shopping every year. Although the Great Recession has impacted the retail industry as a whole, the ratio of e-commerce sales are still strong and increasing. There are some clear dominance for certain goods that are purchased only through the internet. However, the proportion of shoppers purchasing online and shoppers through brick and mortars are still low. While it seems that e-commerce is taking over traditional sales, it is not even close to full domination of the retail industry. E-commerce has had significant impact on financial markets. Revenue growth of this sector is higher than that of the economy. Contribution of e-commerce to the GDP is increasing at a substantial rate. This fast growing industry has low entry barriers and is highly dependent on technological advancements. Efficiency and cost of performance are rapidly changing in favor of the industry with the growth in the technology sector. With...
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...the “Great Recession” that occurred in 2008/2009. Information presented will be the state of the automotive industry before the recession, after the recession, how the industry is doing now and how the future looks for automakers. Contents The Automotive Industry Recovery 1 Transmittal Letter ii Contents iii Figures iii Executive Summary iv Introduction 1 Finding 1 Pre-Recession 1 Post Recession 2 How is it now? 3 The Future Outlook 3 Analysis 3 Summary 3 Conclusions 4 Reference 5 Figures Figure 1, Annual Auto Sales in the U.S. 2 Executive Summary The Automotive Industry was hit hard by the “Great Recession”. Jobs and sales declined rapidly as the economy and Americans were coming up short financially. After a couple years and some restructuring the automotive industry started making a comeback. Increasing sales by focusing on consumer needs helped bring workers back to work. Now the industry is booming again with continued growth in the future. The Automotive Industry Recovery INTRODUCTION PURPOSE The nationwide effect from the Great Recession on the auto industry was apparent everywhere. With the bail-outs of some of the big auto makers and loss of jobs, the economy really went into a slump. But with the automotive industry appearing to be on the up rise, there’s one question lurking in the many heads of the auto workers as well as the consumers. Will the U.S. automotive industry rebound to its pre-recession fame and...
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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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...large. The realities of the recession started hitting the nation officially in December 2007, signaled by the collapse of the housing market and subsequent losses on mortgage related financial assets which in turn resulted to great stress and significant turbulence in the financial markets. All this resulted to an overall fall in the broader economic activity. In an attempt to respond to the worsening economic conditions, the administration lowered the federal funds rate by half the percentage point and as the crisis intensified, Bush’s government instituted the federal tax cuts on all the tax payers (Palley, 2011). The recession came to an end in June 2009 but the resultant economic weakness continued to be experienced in the nation with significant high rates of unemployment levels. There were severe job losses, a fall in family incomes and a rise in poverty levels which impacted negatively on the social life of many Americans. The economic environment also suffered severe losses in terms of drastic fall in investments due to uncertainties in the economy’s future. The adverse effects and subsequent fall in the trading activities led to significant falls in the nation’s gross domestic product. The political atmosphere was not left at peace either. The impact of the economic conditions played a major role in the election outcomes. In particular, election of president Obama into presidency ranked as the most important political effect of the great recession. The American voters had...
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...Escaping the Recession 2007 Is Creating Recession? Han Tran Principles of Macroeconomics Mihaylo College of Business and Economics California State University at Fullerton December 2, 2010 Abstract The Economic Recession 2007 is the second worst recession in American history. It starts out within the housing market. Then, it expands and harms the other business sectors clearly. To illustrate, the U.S GDP failed by around 7%. Americans struggles who laid-off so unemployment rate shoot up to 9.7%. Many retirees lose their money due to the failure of many investment vehicles. The stock market performance declines because companies go bankrupt. Faced the threat of another Great Depression, the government and Federal Reserve Bank immediately interfere to boost up the economy using many fiscal and monetary policies. These efforts definitely help to improve or at least lighten the crisis’s impact on households and businesses. However, economists are concerned by the potential risks of future inflation and debts. 1. Introduction It started out as a failure of the housing market only. However, unexpectedly and quickly expanded, it flooded the whole economy with bankruptcy, unemployment and failure of stock market and other investment vehicles. It is the Recession 2007 whose damages are just less than the Great Depression. The following paper primarily demonstrates the causation of the Recession 2007, the responded policies of the government or the Federal...
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...Negative Impact of Economic Recession By Tejvan Pettinger on September 11, 2012 in economics A recession means a fall in GDP / national output. A recession will typically be characterised by high unemployment, falling average incomes, increased inequality and higher government borrowing. The impact of a recession depends on how long it lasts and the depth of the fall in output. The great recession of 2008-12 has shown many of the negative impacts of recession. Unemployment Not everyone is affected equally by a recession. A fall in GDP will cause a rise in unemployment. This is because: • Some firms will go bankrupt meaning all workers lose their jobs. • In an effort to reduce costs, firms will cut back on hiring new workers. Therefore, unemployment often affects young people the most. In this recession, unemployment in the UK has risen to over 2.6 million, though given the depth of the recession, you might have expected it to be even more (e.g. in 1980s, unemployment rose to over 3 million). However, in Europe, many countries in recession have seen a catastrophic rise in unemployment. With rates of over 20% in countries such as Greece, Spain and Portugal. [pic] Rise in Spanish Unemployment. Source ECB Lower wages Firms will also try to reduce costs by keeping wages low. Some workers (especially temporary workers without contracts may see wage cuts) This has been a key feature of the 2008-12 recession, also aggravated by rising costs of living. With...
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...“Trade protectionism is used by countries when they think their industries are being damaged by unfair competition by other countries” The fundamental commotion of the pre-Great Recession on the economic order that was based on the assumption of inherent value of unlimited trade and capital flows has led to the new emergence of debate on trade protectionism as the means of combating the present crisis. In particular, the European Union (EU) nations have seen increasing calls for the implementation of the more protectionist economic policies. However, given the integrated and interconnected nature of both modern and specific national economies, one may note that protectionist policies would be more likely to hurt economic recovery and contribute to the sharpening of international trade contradictions. This paper presents an account of both parties’ argument, with the recourse to respective quantitative data, in order to substantiate the claim on infeasibility of treating protectionism as a cure for global and European economies’ maladies. The Impact of Protectionism on Crisis and Post-Crisis Developments According to Henn & McDonald (2011), trade protectionist measures implemented by certain nations in the late 2000s did not have a significant impact on the relative world trade recovery after the Great Recession’s peak. However, the authors demonstrate that protectionist policies do have a negative influence on the world trade growth, generally decreasing the latter’s volume...
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...Professor Robyn Milliken-Setser G425/SYO4180 Section 07 Work and Family. Outline Introduction I. How much families have been impacted by the recession. II. How the family dynamics have changed including sharing of household duties and childcare. III. What effect these changes have made to father-child relationships. A. Positive changes B. Negative changes IV. How Society views working fathers A Inside home B. Outside home V. How have marriages been affected by these changes. A. Man's identity affected by ability to provide for family. B. Many wives have taken over as the main breadwinner because due to the Great Recession. Conclusion In four out of ten American households with children under age 18, mothers are the sole or main breadwinner. The recession has played a significant role in the increase of pushing women into the role of breadwinner. Many men were laid off during the recession because the brunt of their jobs were held in the construction and manufacturing businesses. For husbands and fathers, a significant part of their identity is related to their ability to provide for their family. How has this changed since the Great Recession? How are families adjusting? Sociologist Christine Whelan, asks the following questions in an essay "A Feminist-Friendly Recession" published in the 2009 State of Our Unions report: How is the family life of these unemployed fathers? Are they spending more time with their children...
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