Published: 2021-09-10 14:40:09
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Category: Business

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As our country inches out of the recession, we have to look at how our country has bounced back in the past. This is not the first time that we have had a recession, nor is it the worst. In just a short time America has become the strongest financial power in the world. It has not always been easy with times like the great depression and the short recession in 2001. Our economy has a history of up times and down times, it is the natural way of things. Recently our economy has taken a sharp down turn, caused largely by banks failures and the financial crises, the "Bush tax cuts" and the recent extension of the 'Bush tax cuts and our government biggest deficit in history are all making the recovery from this recession problematic. In 2009 President Obama came out with a stimulus package to jump start the economy, and it may have quickened the recovery however the Republican Party was successful in demonizing the stimulus package that in the 2010 mid-term elections they were able to take control of the House of Representative and the focus in congress is now on deficit reduction. We will never know if the stimulus package, like President Roosevelt's New Deal, would have been successful in getting Americans back to work and. It is best to keep in mind that recessions are a natural occurrence and we have always bounced back to be even stronger.

As the world remains in the worst economic times since the Great Depression, several factors begin to play in your life. Throughout this paper, we will discuss what can cause a recession and how it may affect our personal lives. As you read, keep in mind that there is always a bright side to everything. As I will discuss, the effects of a recession for some, mostly those that have the fortune to have and keep their job, will have positive and even advantageous effects.
What is a recession? This question does not have an easy answer and depends on who is trying to define the word. For example, retailers describe a recession as a drop in sales. However, not all retailers agree on how much of a percentage drop constitutes a recession. Some will say a 5% drop; others will say a 20% drop in sales signifies a recession. Manufactures measure a recession by a reduction in production. Labor leaders measure a recession by rising unemployment (Time, 1953). The National Bureau of Economic Research (NBER) describes a recession as a "decline in a country's gross domestic product (GDP), or negative real economic growth. They provide the guidelines for judging a recession and determine the exact date it begins and ends. According to the NBER, a recession is a significant decline in the economy that lasts for more than a few months. This decline in the economy reduces the gross domestic product (GDP), real income, employment, manufacturing, and retail sales (Time, 2008). Simply stated, a recession can be described as:
* People buying less
* Decrease in factory production
* Growing unemployment
* Drop in personal income
* Decline in the stock market
Recessions, or periods of economic slowdown, are common occurrences and vary in severity. According to economists, since 1854 the US has experienced 32 different periods of economic expansions and contractions. The average expansion period lasted 32 months and the average contraction period lasted about 17 months (US Dept of State, 2008). The current recession rivals the Great Depression and is compounded by our political process and our current period of partisanship.

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