The Recession Since World War II Essay

2474 Words Dec 1st, 2016 10 Pages
In late 2007 until mid-2009 there was the Great Recession. This Recession was the longest Recession since World War II. Some of the most notable impacts of the recession are that the Gross Domestic Product (GDP) dropped 4.3 percent, the unemployment rate was the highest at 10 in October 2009 (2). The Recession had not only effected the GDP and the unemployment rate, it had also effected the S&P 500 which had dropped almost sixty percent from its high in 2007 until March of 2009. As the financial market was crashing, so was the net worth of households in the US and the nonprofit organizations (2). When the financial crisis and the recession was getting worse with time the government implemented economic growth measures all over the world. In particular, the United States stimulus programs that used a combination of government spending and tax cuts (2). The Federal Reserve in particular responded in different ways than before. At first, they went their normal route of reducing the federal funds. The Dodd-Frank Wall Street Reform and Consumer Protection Act was passed into law in 2010 (2). This law regulated the Wall Street the most that it has ever been in history. This act was created to reduce the chance that if one takes a lot of risk in the market then that will lead to a financial crisis, as it did in the Great Recession. This law is also to give protection against families that will ensure that pay-day lenders and mortgage companies are not exploiting their customers…

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