Economic Crisis: Effects on the Economy Essay

1480 Words Sep 11th, 2010 6 Pages
Running Head: ECONOMIC CRISIS: EFFECTS ON THE ECONOMY 2
Abstract

The United States is obviously in a state of economic despair. This essay has supporting facts that prove the economy is definitely not on the mend. The public has been led to believe that this downward spiral is almost over. What will be proven in this paper is that foreclosure rates are still dramatically increasing and that the total in unemployment rates is deceiving. Without more jobs, consumers won’t see the gains in income needed to encourage them to spend more. The only thing that does seem to be on the rise is the amount of people seeking help for psychological distress which comes from losing their jobs. It is time for America
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It could be due to the fact that the public was promised renegotiations on about 3 to 4 million loans and now banks are balking at rewriting mortgages at all. “In reality only about 400,000 loans have been renegotiated” according to (Wong, 2010). No matter what negotiations are made or not made, if the problem is not taken care of at the root it will continue to be an issue. So let’s take a look at why people are lapsing on their mortgage payments. RealtyTrak states that “unemployment has become the major reason for foreclosures” (Sharga, 2010, p.1).

Running Head: ECONOMIC CRISIS: EFFECTS ON THE ECONOMY 4
Unemployment is one of the major economic problems affecting our nation. The United States, usually one of the most vibrant economies in the world, is currently suffering from a huge unemployment crisis with millions of people in the workforce without jobs. The government says that stimulus packages are there to help, but what people really need more than money in a big lump sum is a glimmer of hope for new jobs that would mean financial stability for the long term. One of the biggest issues Americans face today is that there are not enough jobs for all the people that need them. “The number of people who have been unemployed for more than six months is about 7 million and millions more are believed to have

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