An Analysis of the Great Recession in the US
My motivation for choosing this topic came from the fact that while the Recession was beginning in 2007, I was first in basic training than subsequently in Iraq. This Recession affected many of my family members and friends negatively and me not being here for it lessens its impact and my understanding of how it affected the entire country. I was employed, never worried about a paycheck, and had very little access to the outside world so I was literally out of touch with reality for a three year period of time and to acquaint myself better with this economic period of time in the US I decided to study it. I chose to compare this period in the US to Canada and Mexico to show simultaneous regressions. These two countries in contrast with the US will help to further illustrate the reasons for recession from 2007 to 2011. To illustrate what actually happened in this period of economic times we must first understand how we arrived at this point. We as Americans rely so heavily on outside sources for oil, more than half of our supply come from exports mainly from the Middle East. After 9/11 gas prices rose because of tension then subsequent wars in the Middle East so between 2001 and 2006 gas prices doubled by the barrel. They doubled again by the barrel in 2006 to 2008 because of the ongoing wars in Iraq and Afghanistan. Higher gas prices ate into consumers' budgets and many individuals fell behind in their mortgage payments and bank foreclosures more than doubled in the same period which led to a deteriorating housing market. Not soon later came a drop in the value of the dollar and the US trade deficit peaked at $840 billion in 2008. All of the domestic economic issues and the global economic downturn pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression...
Cited: OECD (2013), "Country statistical profile: Canada", Country statistical profiles: Key tables from OECD. doi: 10.1787/csp-can-table-2013-1-en
OECD (2013), "Country statistical profile: United States", Country statistical profiles: Key tables from OECD. doi: 10.1787/csp-usa-table-2013-1-en
OECD (2013), "Country statistical profile: Mexico", Country statistical profiles: Key tables from OECD. doi: 10.1787/csp-mex-table-2013-1-en
CIA (2013), “Country economic data: United Sates”, Country economic data: United States from CIA World Factbook. doi: www.cia.gov/library/publications/the-world-factbook/geos/us.html
BLS (2013), “International Labor Comparisons”, International Comparisons of Annual Labor Force Statistics. doi: www.bls.gov/fls/flscomparelf/tables.htm
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