The Economic Effects Of The Great Recession Essay

2088 Words Dec 5th, 2016 9 Pages
The Great Recession began at the end of 2007 and ended in the middle of 2009, which makes it the lengthiest recession since World War II. Beyond its period, the Great Recession was particularly damaging in several ways. The gross domestic product (GDP) fell 4.3% from its peak in the fourth quarter of 2007 to its trough in the second quarter of 2009, the largest decline in the post-war period (based on data as of October 2013). The unemployment rate, which was 5 % in the end of 2007, rose to 9.5% in The middle of 2009 and peaked at 10 % in October 2009.
The economic effects of the Great Recession were similarly outsized: Home prices fell approximately 30 %, on average, from their mid-2006 peak to mid-2009, while the S&P 500 index fell 57 % from its October 2007 peak to its trough in March 2009. The net worth of US households and non-profit organizations fell from a peak of approximately $69 trillion in 2007 to a trough of $55 trillion in 2009.
As the economic crisis and recession deepened, measures intended to revive economic growth were implemented on a global basis. The The US, like many other nations, enacted fiscal stimulus programs that used different combinations of government spending and tax cuts. These programs included the Economic Stimulus Act of in the year in the year 2008 and the American Recovery and Reinvestment Act of 2009.
The State Reserve’s response to the crisis evolved over time and took a number of non-traditional ways. Initially, the state employed…

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