Changes

The '''Recession of 2008''' (also called the '''Recession of the late 2000's''' or the '''Great Recession''') is a major worldwide economic downturn that began in 2008 and continued into 2010. It was caused by the [[Financial Crisis of 2008]]; it is by far the worst recession since the Great Depression of the 1930s. The worldwide recession hit bottom in December 2009; however after five years there were few signs that the American economy started moving upward again.  5 million of the 8 million jobs lost<ref>The effectiveness of [[American Recovery and Reinvestment Act of 2009|Stimulus]]: [http://research.stlouisfed.org/fred2/graph/fredgraph.png?graph_id=112811 Job growth under President Obama's first term;] Source: United States Department of Labor.</ref> did not return - despite an increase in population of 10 million over the same span of time covering President [[Barack Obama]]'s first term.<ref>[https://research.stlouisfed.org/fred2/graph/fredgraph.png?graph_id=112809 U.S. Population growth during Obama's first four years in office.] Source: U.S. Census Bureau.</ref>   

The '''Recession of 2008''' (also called the '''Recession of the late 2000's''' or the '''Great Recession''') is a major worldwide economic downturn that began in 2008 and continued into 2010. It was caused by the [[Financial Crisis of 2008]]; it is by far the worst recession since the Great Depression of the 1930s. The worldwide recession hit bottom in December 2009; however after five years there were few signs that the American economy started moving upward again.  5 million of the 8 million jobs lost<ref>The effectiveness of [[American Recovery and Reinvestment Act of 2009|Stimulus]]: [http://research.stlouisfed.org/fred2/graph/fredgraph.png?graph_id=112811 Job growth under President Obama's first term;] Source: United States Department of Labor.</ref> did not return - despite an increase in population of 10 million over the same span of time covering President [[Barack Obama]]'s first term.<ref>[https://research.stlouisfed.org/fred2/graph/fredgraph.png?graph_id=112809 U.S. Population growth during Obama's first four years in office.] Source: U.S. Census Bureau.</ref>   

[[Greece]], [[Portugal]] and [[Ireland]] remain in serious trouble, while [[China]] and [[Brazil]] have rebounded and are growing rapidly.  Concerning the United States economy, proponents of [[free market]] capitalism declare that  [[Federal Reserve]] Chairman [[Ben Bernanke]] should not have bailed out failing firms and instead should have allowed free market capitalism to quickly recover as it did in the depression of 1920 without government intervention (free market capitalists assert that government intervention merely drags out recessions and depressions).<ref>http://www.youtube.com/watch?v=zzTXaAXusiI</ref><ref>http://www.youtube.com/watch?v=czcUmnsprQI</ref> A 2005 study found that government corporate bailouts are often done for mere political considerations and the economic resources allocated exhibit significantly worse economic performance than resources allocated using purely business considerations.<ref>http://papers.ssrn.com/sol3/papers.cfm?abstract_id=676905</ref>

[[Greece]], [[Portugal]] and [[Ireland]] remain in serious trouble, while [[China]] and [[Brazil]] have rebounded and are growing rapidly.  Concerning the United States economy, some proponents of [[free market]] capitalism declare that  [[Federal Reserve]] Chairman [[Ben Bernanke]] and the United States Congress should not have bailed out failing firms and instead should have allowed free market capitalism to recover as it did in the depression of 1920 without government intervention (free market capitalists assert that government intervention can drag out recessions and depressions).<ref>http://www.youtube.com/watch?v=zzTXaAXusiI</ref><ref>http://www.youtube.com/watch?v=czcUmnsprQI</ref> A 2005 study found that government corporate bailouts are often done for mere political considerations and the economic resources allocated exhibit significantly worse economic performance than resources allocated using purely business considerations.<ref>http://papers.ssrn.com/sol3/papers.cfm?abstract_id=676905</ref>

Likewise in the U.S. the economy has stabilized but has not shown signs of recovery, apart from the stock market going up. Serious weaknesses continue in housing, commercial real estate, banking, automobiles, and retail trade. [[Unemployment]] continues to worsen, reaching 10.2% in October, 2009 and slipping to 10.0% in November, with conditions especially poor in California, Michigan and South Carolina.

Likewise in the U.S. the economy has stabilized but did not shown signs of recovery during President Obama's first term, apart from the stock market going up. Serious weaknesses continued in housing, commercial real estate, banking, automobiles, and retail trade. [[Unemployment]] remained above 8% til October of 2012 with conditions especially poor in California, Michigan and South Carolina.

The crisis is worldwide, with major impact in [[Britain]], Europe (that is the "European Union" or EU), [[Russia]], [[Japan]], the oil countries of the Middle East, and the Third World.  The economy of the EU (Europe) will shrink by 4% in 2009, with unemployment reaching 10%. Ireland, Iceland and parts of Eastern Europe are hardest hit.  Britain was hit hard with  its major banks in deep trouble. Recovery in Britain has been slow; its GDP fell 5.2% from 3Q 2008 to 3Q 2009.<ref>3Q is the third quarter, or the months of July,  August and September.</ref>

The crisis is worldwide, with major impact in [[Britain]], Europe (that is the "European Union" or EU), [[Russia]], [[Japan]], the oil countries of the Middle East, and the developing world.  The economy of the EU (Europe) shrank by 4% in 2009, with unemployment reaching 10%. Ireland, Iceland and parts of Eastern Europe are hardest hit.  Britain was hit hard with  its major banks in deep trouble. Recovery in Britain has been slow; its GDP fell 5.2% from 3Q 2008 to 3Q 2009.<ref>3Q is the third quarter, or the months of July,  August and September.</ref>

Global trade declined sharply--by 13% from August 20008 to August 2009, hurting exporters such as Germany and Japan.  [[China]] has avoided most of the troubles; it continues to grow at a phenomenal rate (8.9% annual rate in 2008-9).  

Global trade declined sharply--by 13% from August 20008 to August 2009, hurting exporters such as Germany and Japan.  [[China]] has avoided most of the troubles; it continued to grow at a phenomenal rate (8.9% annual rate in 2008-9). However its exports did shrink because of falling world demand, and its ability to fund global stimulus programs are being dampened by lower growth forecasts and shifting priorities to retain capital earnings for domestic development.

Global governments spent an astonishing $17 trillion to support the world economy in the form of bailouts, guarantees, and equity market purchases. That $17 trillion represents one quarter of global GDP, but only a fraction of that sum will actually be paid out. (How much will not be known afor a few years.) Global investment declined by 15% , and global GDP by shrank by nearly $4 trillion, or an amazing 6%.  Global industrial production in the advanced economies dropped a 15%, causing unemployment  to soar around the world, nearly doubling in the United States alone.<ref>David Smick, "Now What Do We Do?"  November 10, 2009 [http://www.lexingtoninstitute.org/library/resources/documents/Defense/DavidSmickSpeechattheColonyClub11.10.09.pdf online] </ref>  

Global governments spent an astonishing $17 trillion to support the world economy in the form of bailouts, guarantees, and equity market purchases. That $17 trillion represents one quarter of global GDP, but only a fraction of that sum will actually be paid out.<ref>One analyst in 2011 put the figure at $29 trillion. [http://www.levyinstitute.org/pubs/wp_698.pdf $29,000,000,000,000: A Detailed Look at the Fed’s Bailout by Funding Facility and Recipient], James Felkerson, University of Missouri–Kansas City, December 2011.</ref>  Global investment declined by 15% , and global GDP by shrank by nearly $4 trillion, or an amazing 6%.  Global industrial production in the advanced economies dropped a 15%, causing unemployment  to soar around the world, nearly doubling in the United States alone.<ref>David Smick, "Now What Do We Do?"  November 10, 2009 [http://www.lexingtoninstitute.org/library/resources/documents/Defense/DavidSmickSpeechattheColonyClub11.10.09.pdf online] </ref>  

[[File:Empl2009.jpg|thumb|400px]]

[[File:Empl2009.jpg|thumb|400px]]

==Origins==

==Origins==