Great Recession Research Paper
1. Several major trends that led to the Great Depression/Great Recession and how they build up to the negative multiplier effect.
a. Differences between commercial and investment banks were almost minute
i. There are two main kinds of financial banks:
1. Commercial, it takes bank deposits and makes loans.
2. Investment, where the bank can underwrite purchases of financial assets and bonds. ii. Prior to the Great Depression, there were little to no rules what a commercial bank and an investment bank can do. So essentially, both banks could perform the same action what the other bank can do. This led to commercial banks investing creditor’s deposits into stocks. Then the stock market crashed, wiping out any stocks …show more content…
In both cases broken window policing and war on drugs, there are specific groups that are targeted; low to middle income groups.
b. In broken window policing, about anything out of the ordinary neighborhood can be investigated by the police. Usually, occurrences of these policing actions appear in low income areas and several people were arrested in these instances. Jailing people prevents them of working; thus, reduces economic recovery (Hawkins).
c. The illegal use of drugs is varied in the income classes. It’s harsher in the lower classes because police are finding stronger drugs and possible racism. Arresting the low income offenders takes away workers from the economy, slowing down recovery as well (Hawkins).
5. How is the declining life expectancy of white male and females with a high school education or less affects the USA economy?
a. The declining life expectancy of white male and females with a high school education or less is evidence of the impact the Great Recession and top 5% class pulling ahead. Having a high school education can only get you so far in the income climb, low income jobs become limited, debt never leaves, and coping with the hardships with anything readily available …show more content…
Two of the main causes of the declining life expectancy
i. These people are mostly limited low income jobs and there is a lot of completion for these jobs. Because of the Recession, many of the middle class’s jobs were lost and offshore to other countries. Now there are more people competing for the same jobs everyone can take. So, people with a high school education or less will have less money. ii. With so little income earned, they can only buy so few things. The four items prioritized first are food, water, shelter, and clothing. Water and housing are usually stay the same in a family budget; food and clothing however, fluctuate based on income. On lower income, people tend to buy cheaper food to conserve money; most of the foods are unhealthy and leads to obesity. Additionally, they also buy mores smokes and narcotics than any other group. All of these health hazards build up to a shorter life expectancy.
6. Policy actions that push Greece’s recession in a