Lecture+16+-+The+Great+Recession - The Great Recession...

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Lecture 16 The Great Recession
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The Great Recession The recession began in December 2007 when the U.S. housing bubble burst.
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The Great Recession Economists define “recession” as two or more consecutive quarters of negative economic growth. According to this definition, the U.S. recession ended in late summer 2009.
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The Great Recession Ordinary people use the term “recession” to describe a period of ongoing economic hardship. Most Americans believe the United States is still in a recession.
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National Unemployment The unemployment rate has not only been high, it’s been persistent . In 2009, the average duration of unemployment surpassed 6 months (the highest on record, since the Bureau of Labor Statistics started tracking it in 1949). In February 2016, the average duration stands at just over 7 months.
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National Unemployment Persistent joblessness is terrible for the economy: Without work, people stop buying things, and without consumer demand, businesses lay off workers, reinforcing the cycle.
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Recession’s Effects on the Middle Class The social contract up until the 1970s: In return for job security, guaranteed benefits, and good pay, employers got loyal, productive workers. Security Mobility Prosperity
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Recession’s Effects on the Middle Class In the 1970s, the social contract began to fall apart. Wages stagnated or fell. Income mobility declined. College completion rates declined. Retirement security declined. Health security declined. Long-term savings declined.
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Recession’s Effects on the Middle Class The experience of the middle class today is not just about inequality , it’s about insecurity— the fear of falling down the economic ladder.
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Recession’s Effects on the Middle Class
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Recession’s Effects on the Middle Class Katherine Newman refers
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