Mid-2009 Great Recession Analysis

United States has one of the best and stable economy in the world, but all economies have its ups and downs. Well from late-2007 through mid-2009 USA experienced one of the worst if not the worst recession in its history. Many people compared it to the Great Depression and were saying we will be in another depression. Well the government and the Federal Reserve were doing almost everything in their power to prevent that. They succeeded in keeping us out of a depression and took us out of the recession. The Great Recession which took place which took place from late-2007 through mid-2009. The economy steeply plummeted and nearly 8.7 million jobs were lost. The unemployment rate got as high as 10% during the recession. Most of the people that …show more content…
He was working closely with congress on this issue. One of the things they did was pass the American Recovery and Reinvestment Act. The Recovery Act was the boldest countercyclical fiscal stimulus in American history. One of the things this act did was cut on taxes and cut on the spending which was $787 billion. It is estimated that the Recovery Act has saved or created roughly 2½ million jobs for Americans. Also, the administration worked with Federal Reserve to help and repair the financial system. They also worked on stabilizing home market and foreclosures. Federal Reserve reduced mortgage interest rates, resulting in lower payments for the millions of Americans who refinanced their homes, to save money by paying less on their mortgage. They also set up programs to help Americans that were in hard times and couldn’t pay the …show more content…
government’s response to the financial crisis and ensuing Great Recession included some of the most aggressive fiscal and monetary policies in history. Monetary policy involves changing the interest rate and influencing the money supply, which the Federal Reserve did and the interest rates are still at record breaking lows. Fiscal policy involves the government changing tax rates and levels of government spending to influence aggregate demand in the economy, which Obama administration did by passing many policies like the American Recovery and Reinvestment Act. To this day the fiscal and monetary policies that were created or used during the Great Recession, almost every one of these policy initiatives remain controversial, with critics calling them misguided, ineffective or both. In all, close to $1 trillion, roughly 7 percent of GDP, was spent on fiscal policies. The benefits that the policies brought were that they would start fixing our economy right away. Also the threats that they brought with them were that they might not last long enough to get us fully out of the recession. Also that they might put us in a worse place then we were at, during the peak of the recession in