article response 1 - decreases in employment, production...

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Article Response Jamie Connell Zhou Yu Article Title: “Lost Decade for Family Income” Article Source and Date: The Wall Street Journal; Friday, September 17, 2010; by Conor Dougherty and Sara Murray Economic Topic (and Chapter): The Business Cycle - Chapter 6 What is the article about? Briefly summarize the issues in a non-technical way. New Census data has shown that due to the recent recession, the income of the American family is declining. The percentage of Americans living in poverty has increased, along with a decrease in the income of the median household. Side effects of this decline include preventing young adults from leaving home, an increase in child poverty, and an increase in shared households. What are the economics of the article? How does a recent topic covered in the course explain the subject matter of the article? This article is an example of the impacts of the business cycle in the real world. The business cycle shows fluctuations between economic downturns and upturns, manifest as increases and
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Unformatted text preview: decreases in employment, production and prices. A downturn in the business cycle is known as a recession, which effects the ability of workers to hold and find jobs. This article shows how the current recession has made it difficult to find employment, as well as lowering the overall well being of the American family and lowering the average income. As the graph below indicates, data shows that fluctuations in the family income are concurrent with downturns and upturns in the business cycle. By comparing these two graphs, it is clear that the rise and fall of the business cycle correlates with the rise and fall of income. For example, the recession began in 2008. The graph of the business cycle shows that during this recession, employment and output have de-creased. The graph of family income shows that during this recession, family income has also decreased....
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This note was uploaded on 02/02/2011 for the course ECON 102 taught by Professor Rossana during the Fall '08 term at University of Michigan.

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