Recent recession in the US

This assignment explores the recent recession in the United States. It discusses the main reasons behind the recession, its impact on the US economy, and how it impacted the world economy.

The recession in the United States is often said to have begun in December 2007, when the economy officially began to contract. This event is typically considered the start of the Great Recession, which lasted until June 2009. The main reasons behind the recession were the housing market crash and the subprime mortgage crisis. These two events led to a decrease in consumer spending, which in turn led to a decrease in economic growth.

The impact of the recession on the US economy was severe. GDP growth fell from 3.3% in 2006 to -2.8% in 2009. This represented the biggest drop in GDP since World War II. Unemployment also rose sharply, from 4.6% in 2006 to 9.3% in 2010. In total, 8.7 million jobs were lost during the recession. The stock market also plummeted, with the Dow Jones Industrial Average falling from 14,000 in October 2007 to 6,547 in March 2009.

During the recession, the US government implemented a number of policies in an attempt to revive the economy. These included stimulus packages, tax cuts, and the bailouts of a number of large financial institutions. While these measures did help to some extent, they were not enough to prevent the recession from having a lasting impact on the US economy.

The recession also had a significant impact on the world economy. Trade and investment flow decreased sharply, as did economic growth in many countries. This was especially true in developed countries, which were more closely linked to the US economy. In Europe, for example, GDP growth fell from 2.7% in 2007 to -4.3% in 2009. The recession also led to an increase in government debt levels around the world, as governments stimulus packages and bailouts.