Recession In America

• The data display’s a number of different years that the country was in a time known as a recession, here the country was in a state of negative economic growth. The period from 1930 to 1933 was known as the Great Depression, this was the worst time in America’s history that the economy preformed so poorly. Demand for goods was very low and people attempted to save money to weather the poor economy but this created stagnation which prolonged the depression. The Great Depression ended through the government’s increased involvement in the economy, in the short run. The economic downturn that America experienced in 1946 was due to a decrease in productivity because World War 2 was coming to a close. According to the article Stimulus by Spending
Cuts: Lessons From 1946 discusses how the government released 10 million workers from the military to civilian life that year. After WW2, a large talent pool was created from the left over workers that were previously used for the war. The economic downturn of 1949 had the causes as 1946, which were largely due to WW2 ending and the country attempting to transition out of this period in history. Finally the recession in 2009 was due to the high levels of unemployment in the U.S. economy. According to the article the Recession of 2007-2009, in June of 2009 the recession peaked at 9.5%. Construction and manufacturing industries experienced the greatest declines in jobs. Mass layoffs and a lack of available jobs created a state of hopelessness in America; this was one of the worst recessions since the Great Depression. An economy relies on workers acquiring higher skills, more capital, improved management and technological advancement to increase productivity and improve the economy. As viewed throughout history, the country experiences recessions after periods of great growth. It is imperative that a government introduces innovative ways to combat recessions by finding ways to stimulate economic growth.