Title

Are we at Risk for Another Great Recession

Document Type

Article

Publication Date

2017

Department

School of Business

Abstract

The Great Recession, which occurred from December of 2007 until June of 2009, threatened to cripple the United States (US) economy. Simultaneous to the Great Recession was the "infamous" financial crisis of 2008. Each of these events heightened the severity of the other. The financial crisis alone would have created economic woes for the U.S. But, the financial crisis caused instability in the financial markets at a time when the economy was already contracting because of an existing global and national recession. During the Great Recession the nation suffered several quarters of high unemployment, plummeting real estate values, and stagnate to decreasing national Gross Domestic Product (GDP) production. In addition, the nation's consumer markets experienced decreased confidence largely because there was general concern about the financial stability of the U.S. banking system (Kadlec, 2013). In an effort to stabilize the financial and consumer markets, the U.S. government provided funds to bail out large banks and passed new legislation to further regulate the banking sector. A thorough understanding of the factors that contributed to the Great Recession may reduce the likelihood that such an events will trigger another severe recession. As such, the purpose of this paper is to reflect on the factors that lead to the "Great Recession" and consider whether contributing causes still persist.

First Page

30

Last Page

39

Volume

17

Issue

1

ISSN

23813105

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