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State of the United States Economy

In: Business and Management

Submitted By ed07ph
Words 1290
Pages 6
Evan DiLauro
ECON 152
12/3/13

The State of the United States Economy

By looking at the past five years of data, it is clear that the United States economy is in a state of rebound from the Great Recession. The data shows that before the recession the United States’ economy was operating at a solid level. The recent numbers show that the economy is on its way back to the state it was in before the recession hit.
The Great Recession began in December 2007 due to major factors that lead to economic turmoil. Causes of the recession include failure of the federal to stem the tide of toxic mortgages, breakdowns in corporate governance, a excessive mix of risky barrowing by the households and wall street, key policy makers were not prepared for the crisis, and breaches in accountability and ethics at all levels. Due to the combination of these factors the Great recession was started and did not officially end until June 2009. During this time the unemployment rate took an all-time high and GDP growth was slowed down and at one point went negative. This was a rough time for the United States financially. Many people were in debt and did not have a job. The housing market also crashed, leaving Americans with little money and high prices on real-estate. Consumer cutbacks took a major increase, which also increased inflation, which lead to the decrease in GDP.

Although the recession ended in 2009, it was the worst year for the United States unemployment rate. The annual unemployment rate in 2009 was 9.2%. The most recent unemployment rate release was 7.0%, which is the lowest it has been since 2008. Just last year the annual unemployment rate was 8.1%. In 2007, which was pre-recession, the unemployment rate was 4.6%. If the numbers continue to fall at this level the unemployment level will be back at level it was before the recession hit. One way the government

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