U.S. Economic Crisis Essay - 870 Words

The United States is currently experiencing the biggest financial crisis after the Great Depression, in this paper we will discuss what caused the current economic crisis and why? Two What is the relationship between mortgages, the housing crisis and Wall Street? Third, how has this crisis affected fiscal policy and what are some of the drawbacks of government intervention. Four, what is the recession doing to GDP, economic growth and inflation and how are other countries faring. Five, discuss the different types of unemployment and why is underemployment becoming an economic issue and lastly, what should be done to get the economy back into expansion mode. One main factor that caused the current economic crisis†¦show more content†¦These loans were result of large acquisitions or lack of due diligence on loan purchases by these large firms according to Muolo, P (2007). Fiscal policy is the government expenditure and revenue collection to influence the economy before the current economic crisis the government policy was increasing home ownership. This crisis has affected fiscal policy and the government has intervened by providing simultaneous packets to companies that have been affected by the economic crisis. In February 2008 President Bush signed into law a $168 Billion economic stimulus packet, which was intended for the consumer to simply spend their rebates to cover higher food and fuel prices. Then in February 2009 President Obama signed the American Recovery and reinvestment act of 2009, a $787 billion stimulus package that was allocated to help struggling homeowners. Some other programs the U.S Government passed was the Emergency Economic Stabilization Act of 2008 or Bailouts of Major financial institutions. There were some drawbacks by government intervening pose risks to price, financial, and fiscal stability. According to the economy of United States are the worlds largest it’s normal GDP was estimated to be $14.2 trillion in 2009. The total U.S Federal debt was $10.62 trillion, while the U.S public debt is the world’s largest in absolute size. This debt as aShow MoreRelatedThe Economic Crisis Is the Greate r Challenge than Pandemics to U.S. National Interest535 Words   |  2 Pagestransform interconnectivity between sovereign nations’ political, social and economic cultures. For centuries, globalized improvements in infrastructure (communication, economies, trade, and ideas) have allowed sovereigns to improve interdependence with others. This essay will present why the economic crisis, a global issue, is the greater challenge than pandemics to U.S. national interest. Regarding pandemic challenges, the U.S. has among the world’s best health care. 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