Trent Kelley
Central High School
Abstract
This paper will examine how the economy has affected unemployment in Phenix City, Al over the past 10 years. The paper will examine how the economy and unemployment both affect the average American individual.
What effect has the economy had on employment in Phenix City in the last 10 years?
America has been through many events over the past ten years, many of which have affected the economy. These economic changes have had both a positive and negative impact on employment, personal life, politics, and America as a whole. Some of the negative events include The Great Depression and the 2008 market crash. …show more content…
Signs of a recession can include low investments, a high unemployment rate, low average incomes, low equality, and a high amount of government borrowing. The official definition of a recession is “two consecutive quarters of negative growth in gross domestic product (GDP)”. A recession leads to low investments. These low investments can lead to productive capacity of the economy being affected. If the recession is not long-term, the amount of investments will increase in a relatively short amount of time. Companies will try to cut back on spending, thus hiring fewer workers, which in turn raises the unemployment rate. A company may completely stop hiring if the recession hits too hard. Companies may go bankrupt making all of that specific company’s workers lose their jobs. If fewer workers are hired or if more workers are laid off, more work will have to be done by fewer workers. Companies and firms will also try many methods to cut back on spending. Companies might keep wages low to reduce …show more content…
Families have to reexamine their priorities in their lives and in their financial plans. Studies show that 88% of Americans will watch how they spend their money and 89% of Americans may make major changes in their financial plan. Many Americans have to change the way they live as an effect of the recession. Some American families carpool and share cars to save money. Other families cut down on unnecessary spending, such as eating out or shopping. As a result of the economic situation, roles are temporarily being reversed. Women are getting a paycheck, while men now have to stay at home and take care of children as well as household responsibilities. When money seemed to never stop coming, families lived like it would never stop. Now that the money is limited, families have to live on limited amounts of money. Families are downscaling because of the economic