Choose An Economic Period In The United States ✓ Solved

Choose An Economic Period In The United States Within The Past 100 Yea

Choose an economic period in the United States within the past 100 years. Catalogue what was happening in the economy during your chosen period. Explain what actions the government took in reaction to the state of the economy during this period. Explain if budget deficits and divisiveness in government increased or decreased during this period. Describe what, if any, fiscal policies came out of this period and why those fiscal policies were enacted. Include pictures, graphics, graphs, quotes, etc. to represent your findings, as well as three to five scholarly sources. Include speaker notes below each content-related slide.

Paper For Above Instructions

The economic landscape of the United States has witnessed numerous transformative periods over the last century, each characterized by unique challenges and government responses. This presentation will focus on the Great Recession, which spanned from late 2007 to mid-2009. The Great Recession was the most severe economic downturn in the U.S. since the Great Depression and had profound effects on the economy, the government’s fiscal policy, and the public's trust in government institutions.

Understanding the Great Recession

The Great Recession was primarily fueled by the collapse of the housing bubble, which had been fueled by dubious mortgage lending practices, complex financial products, and rampant speculation. As housing prices peaked in 2006, they began to plummet, leading to massive foreclosures, loss of household wealth, and a sharp increase in unemployment. By October 2008, the financial crisis reached its zenith with the bankruptcy of Lehman Brothers, triggering widespread panic in the financial markets (Mian & Sufi, 2014).

Government Actions During the Great Recession

In response to the burgeoning crisis, the U.S. government enacted several fiscal and monetary policy measures aimed at stabilizing the economy. The Troubled Asset Relief Program (TARP), implemented in October 2008, authorized the Treasury to purchase or insure up to $700 billion of "troubled assets" from financial institutions (U.S. Treasury, 2009). This was complemented by aggressive monetary policy strategies employed by the Federal Reserve, which included slashing interest rates to near-zero levels and implementing quantitative easing (Bernanke, 2012).

Impact on Budget Deficits and Government Divisiveness

The Great Recession led to a significant increase in the federal budget deficit, driven by both decreased tax revenues due to high unemployment and increased government spending on relief programs (CBPP, 2015). In 2008, the federal deficit stood at approximately $459 billion but ballooned to over $1.4 trillion by 2009, reflecting the extensive government intervention necessary to stabilize the economy (Office of Management and Budget, 2010). Furthermore, this economic turmoil deepened existing political divides, as disagreements over the effectiveness of government intervention versus market-based solutions intensified (Drew, 2016).

Fiscal Policies Arising from the Great Recession

Several key fiscal policies emerged from this dire economic situation, most notably the American Recovery and Reinvestment Act (ARRA) of 2009, which was aimed at stimulating economic growth through tax cuts and increased government spending on infrastructure projects (Congressional Budget Office, 2010). These policies were enacted with the intention of creating jobs and reversing the course of the recession, thereby laying the groundwork for future economic recovery.

Conclusion

In summary, the Great Recession was a critical period in U.S. economic history, marked by significant challenges that prompted the government to take unprecedented actions. The combination of budget deficits, increased divisiveness, and the introduction of new fiscal policies reflects the complexity of responding to economic crises. Moving forward, lessons learned from the Great Recession continue to inform current economic policy and strategies aimed at preventing similar downturns in the future.

References

• Bernanke, B. S. (2012). The Federal Reserve and the Great Recession. Journal of Economic Perspectives, 26(4), 3-28.
• Congressional Budget Office. (2010). The Budget and Economic Outlook: An Update.
• CBPP. (2015). The Budget Outlook: Overview and Key Issues.
• Drew, E. (2016). The Political Economy of the Great Recession: Lessons and Challenges. Political Science Quarterly, 131(3), 525-549.
• Mian, A., & Sufi, A. (2014). House of Debt. University of Chicago Press.
• Office of Management and Budget. (2010). Historical Tables.
• U.S. Treasury. (2009). Troubled Asset Relief Program: Report to Congress.