Why did the US economy go into such a recession and are we still in a recession? These are a couple very significant questions that affect pretty much everyone in this wonderful country of ours. The first one really affects us as college kids who are looking forward to the bright futures that lie ahead of us in which we need a solid economy that isn’t failing in order for us to have a solid chance in job placement. It affects all of our peers not in college and everyone else in the job market and or unemployed workers in hopes of a good job with high wages and a better life to look forward to. Which leads into the second question of are we still in a recession which obliviously affects everyone looking forward to what it’s going to entail for the country to pull ourselves out of it and be on better grounds and how long we’re going to have to wait till it’s over.
I think there are a couple factors that I know of but have to be many more that have to be contributors to the failing economy. One of the factors being that the insurance companies outstanding and unreal loans and mortgages they gave out to people knowing they were going to default on their payments and end up being foreclosed on. This ended up causing tons of companies to close in which put many workers out of a job. Once big companies started failing (not just in insurance companies but many other types of companies ex. Banks) it caused a domino effect of other problems throughout the economy causing it to collapse.
I plan to go in depth to why all of these companies started to go bankrupt which in turn leads me to why the economy started failing. Also this will hopefully give me a clearer view on if or when this economy might have a brighter future in its sights.
Your should watch the documentary Inside Job, which won an academy award (I believe). I saw it a couple months ago, and it was quite scary in what it reveals about the financial industry and the recession. This would be a GREAT research source for you!
ReplyDeleteI have to say, I think about this a lot throughout the week. When I go to work, all I can think about is getting a new, higher paying job and realize the only way to get that these days is by going to school. I can't wait until I get my paycheck after 2 weeks, then realize my excitement is destroyed by several bills that need to be paid before I can have my fun over the weekend. The recession has taken a toll on college students, that is true. It is also true that it has taken a toll on our parents, and if it continues our social security may not be available because the government is losing money.
ReplyDeleteReading this reminded me of a time one of my friends and I were on our way to dinner and she was talking about something that didn't really strike me as important :) then she said "..because we are in like a recession or something.." After hearing those words spill out of her mouth I really could not help myself from laughing. As you can guess we are not friends any longer but this is a great topic to research.