Global Economic Recession

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Recommended: What caused the 2008 recession

An economic recession is described as “a widespread decline in the GDP and employment and trade lasting from six months to a year.” (Word Net) The economic recession is an international problem that has been affecting countries like the United States, China, United Kingdom and others for over two years. The latest recession began when house prices and sales began to fall and large drop offs in business investments started. Another causing factor of the recession was citizens with bad credit buying houses and real-estate and mortgages not being paid. Countries began taking action in 2008 by implementing stimulus packages and bailout plans, which can help a country locally, federally and on a global scale. The United States stimulus package has been in effect for over a year and they have been distributing bailout money to large corporations, investing in infrastructure and public services as well as investing into green incentives. The States were one of the first countries to begin a stimulus package in 2008 under the Bush administration.

In 2008, the United States began too feel the harsh effects of the economic recession. Large auto companies and banks were suffering and were on the brink of bankruptcy. Bailout money was sent to hundreds of large companies, generally automotive companies and banks. Approximately $70 billion was given to the bank AIG and nearly $50 billion was given to General Motors (Pro Publica). The reason for these bailouts were so the years worth of investments from American citizens could be kept safe and the jobs of a few million citizens could be kept safe. This bailout money would stimulate and keep these corporations running for an appropriate timeframe that they could rethink their plans ...

... middle of paper ...

...blem, like Canada or the UK, follow similar plans, there can be a greener, more prosperous and safer future for a large portion of the globe.

Works Cited
"Bailout Recipients." Pro Publica. 11 Jan 2010. Pro Publica Incorporated, Web. 11 Jan 2010. .

Hossain, Farhana, and Amanda Cox. "The Stimulus Plan: How to spend $787 Billion." New York Times. 18 Nov 2009. The New York Times Company, Web. 11 Jan 2010. .

West, Larry. "U.S. Economic Stimulus Package Includes Billions for Energy and the Environment." About.com. The New York Times Company, Web. 11 Jan 2010.

"WordNet Search 3.0." Word Net. Princeton University, Web. 11 Jan 2010. .

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