European Crisis Essay

1127 Words 5 Pages
The European crisis has affected numerous individuals over the years, and still continues to affect several of them. As stated in the article “Why did the Crisis happen?” It all began “When a slowdown in the US economy caused over-extended American homeowners to default on their mortgages, banks all over the world with investments linked to those mortgages started losing money.” (2014) Our fourth largest bank in America collapsed, and other banks feared the same would happen to them. As a result they put their foot down, and stopped lending money to other banks. Due to this disaster, all the European banks that had invested in American mortgage markets were knocked down the most. The government stepped in to try to resolve the problems that were created, but for some countries it was too late. Europe went from a peak to trough; they had hit a recession in 2009. The European Crisis caused debt, …show more content…
The increase in unemployment has affected several people, however the youth are the ones struggling the most. Individual countries part of the European union each has specific problems they’ve encountered. Some of these include the differences in employment policies, educational systems, and economic performance. Yet there are problems that have risen throughout the entire EU. The European crisis has put a burden on the economy and as a result jobs are diminishing in the labor force. The high youth unemployment rate has caused young individuals to desperately search for jobs, and at this point any job available in the labor market will do. Since they have a lower job security then most employees, they are more likely to lose their job more quickly during a recession. However individuals coming right out of college with high levels of knowledge get upset the only job they can get is below their expertise. While they work, they don’t put as much effort, therefore the company they work for doesn’t grow to its full

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