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The recession mirroring the GreatDepression

By

Erik Sterner

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At the end of the Roarin 20s,America entered the worst

economic position it has ever been in. This period ofeconomic turmoil is known as the great depression.

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Being at war with Iraq stuck a huge blow to theAmerican economy, with money being spentoverseas, less money was flowing throughout the

states.

At the height of the recession prices for gas and oilsky-rocketed, jobs were hard to come by, andbanks went bankrupt.

This is one of the worse economic situations wevebeen in since the great depression.

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The United States material demand shadowsthe rest of the worlds demand.

The U.S. military has one of the biggest U.S.budget.

Outsourcing for oil puts a toll on the UnitedStates funds.

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The U.S. ever growing has had a high demandfor oil ever since the industrial revolution.

In 2007 the U.S. consumed 20,680,000bbl/day.

One bbl is equal to 42 gallons.

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March 20, 2003 President Bush declared theinvasion of Iraq.

As well as being seen as a commercial war onterrorism, the another motive was to protectthe United States oil interests in the MiddleEast.

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The U.S. accounts for 46.5% of the worldsmilitary spending since 2009.

The U.S. spends $684 billion a year on itsmilitary.

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The real estate problem played a huge part inthe decline as seen with the rapid growing ofthe market coming to a sudden halt.

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Housing bubbles are rapid increases in value of real property in acertain area until unsustainable levels are reached relative toincomes.

This leaves homeowners with a negative equity, a mortgage debt

higher than the value of the property. So many homeownerscouldnt pay for the houses they lived in

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The markets rapid growing was due to U.S.citizens loaning vast amounts of money fromBanks.

These people didnt have the incomes to paythe banks back. So banks were losing moneyalong with other peoples money as well.

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With the booming real estate market who wouldntseize the opportunity to make money?

This attitude resulted in many banks cutting many jobs

and in some cases the banks closing On October 3rd 2008, banks across America received a

$700 bailout to save what was left of the economy.

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UnemploymentUnemployment Since the recession of

2008/09 has hit, many find

their wealth vanishing andmany worry for their jobs.

In the U.S. alone,unemployment has risen

8.5% During November 2008,

employers shed 553,000 jobs,the biggest downsize in 34

years.

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Layoff is temporaryunemployment of anemployee or group ofemployees.

When a business doesnthave much moneytemporary layoffs are oftenthe solution.

Just in August of 2010, 403mass layoff events tooplace, over 150,000 workerswere laid off.

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The stock market is a key indicator of how theeconomy is presently.

As the economy improves, businesses makemoney, so their market value increases.

Declining business profits caused by anything,causes a weakening economy which results infailing businesses, therefore falling market values.

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Today, the economy is stillpretty bad, we are still paying for the

war in Iraq and are having bugetingproblems. With many so-calledsolutions to the economic crisis, therehasnt been a perfectly fitful plan to

save our economy. If lucky in thenear future we will see animprovement in the economy.

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http://www.nationmaster.com/graph/ene_oil_con-energy-oil-consumption

http://en.wikipedia.org/wiki/Recession

http://en.wikipedia.org/wiki/United_States_housing_market_correction http://useconomy.about.com/od/criticalssues/a/govt_bailout.htm

http://www.globalissues.org/article/75/world-military-spendingbyAnup Shah Created:Monday, July 20,1998Last Updated: Wednesday, July 07, 2010

http://www.cdi.org/issues/usmi/

http://www.bls.gov/news.release/pdf/empsit.pdf

http://applicant.com/from-4-129-the-state-of-unemployment-across-us/

http://www.bls.gov/mls/

http://en.wikipedia.org/wiki/Layoff http://facts.randomhistory.com/2009/04/12_great-depression.html

http://mises.org/daily/4654