What Really Caused the Recession in the United States in...

What really caused the recession in the United States in the 1980s? There was a great economic decline in the late 1970s and the beginning of the 1980s where there was a decline in trade and industrial activity. The 1980s was not a good time for the United States because the Regan Administration during this period began a 30-year period of financial deregulation. When president Regan was elected into office he promised the Americans that he would bring to an end the supply- sides economics. He argued that economic growth in the United States would be created effectively by lowering barriers for people to supply goods and services, as well as, invest. Therefore, his first move after he entered into office was to deregulate banks and oil. For that reason, there was a sharp expansion in the financial sector because there was also an expansion in the banking industry. There was an increase in the number of investment banks that went public; hence, bringing a very huge sum of the stake holder capital. This essay aims at looking at what caused factors led to the recession in the 1980s as the period saw many employees being arrested for financial fraud. The economy of the United States had gone through a tremendous change as even employees’ salaries had been increased by a 25 % increase even those who were not working for the investment banks (Ehrman, 143). The employees working for the investment banks saw a 150% increment in their salary (Cynamon, Steven Mark, 67). TheShow MoreRelatedEssay about 1980 s Double Dip Recession1407 Words   |  6 Pagesï » ¿1980’s Double Dip Recession Overview I. Introduction The 1980-1982 Double Dip recession brings up the curiosity of how the stagflation of the seventy’s affected the early eighty’s in which it caused the Fed and the USA congress to be switching back and forth from stimulus and restraints causing us to fall to our first recession. Then not till later we will see that Paul Voucher Chairman of the Board of Governors use heavy monetary restraints to control the inflation and ending the first recessionRead MoreThe Success Of The 1980 S1648 Words   |  7 PagesIntroduction The 1980’s were a period of many different innovations, studies, misfortunes, and explorations in the United States. This was a decade full of outspoken, optimistic and assertive Americans, this was a time for change. It was really a period that kind of refreshed the US and created a more confident country. There were many people that were trying to find a voice for themselves and realizing that people have a voice and it should be used and heard. Not only were thingsRead MoreThe Crisis Of 2008 And Its Effects On The Economy1361 Words   |  6 Pagescaribbean, because that s where they get most of their money. A financial crisis is applied in various situations where a large number of financial institutions, including banks and credit unions lose a large amount of money due to the economy. Throughout the years economist have come up with various arguments about how most financial crisis develop, and how they can be avoided in the future. You can still expect to see the financial crisis around the world often, but the really bad ones occur aboutRead MoreThe American Dream And The Mortgage Crisis Essay1743 Words   |  7 Pagesinstance, in the United States, the â€Å"American Dream† to own a home had a huge influence on the mortgage crisis in 2008. However, the economy at that time period had been inducing people to buy new home. Likewise, in Greece, the growing trend of corruption and bribery among the people played a major role in shattering its economy. As a consequence of the dreadful economy, Greek people are revolting against their government. While Greece is trying to recove r from its devastated state, the overrated AmericanRead MoreThe Economic Situation Of Latin America2306 Words   |  10 PagesMexico: Experiences in the 1980’s and challenges for the future, and in, Latin American countries underwent the worst economic recession during the 1980’s. The distribution of incomes after the 1940’s was a radical change because there was a huge gap between poverty level and the elite members of society. After that point in history it has continued the same way up until contemporary times. The considerable difference in the income inequality and the high poverty rates is what interested me and in particularlyRead MoreThe Economic Situation Of Latin America2506 Words   |  11 PagesMexico: Experiences in the 1980’s and challenges for the future, Latin American countries underwent the worst economic recession during the 1980’s. The distribution of incomes after the 1940’s was a radical change because there was a hu ge gap between poverty level and the elite members of society. After that point in history it has continued the same way up until contemporary times. The considerable difference in the income inequality and the high poverty rates is what interested me and in particularlyRead MoreThe Republic Of Dominican Republic1338 Words   |  6 Pagespeople started to become interested in what the country had to offer. Problems began to arise when people did not have many jobs to support themselves with. Economically the country was suffering but many things were experimented to increase the overall income of the people. Soon, agriculture was not the only source of income. The country relied on tourism, agriculture, and many other things to help them provide jobs to the people. Around the late 1980’s and 1990’s, the GDP fell by 5% and price inflationRead MoreThe Importance of Low Aggregate Volatility in the US Economy2087 Words   |  8 PagesSince the mid 1980’s the United States economy has been characterized by low inflation and low volatility in the market. The Former Fed chairman Ben Bernanke has even gone as far to say that the Fed has tamed the business cycle. Supporters of this idea believed that deregulation of the financial sector and controlling inflation would bring long expansions and limited recessions. What were the factors that caused this period of stable economic growth? This period of low volatility was due to bothRead MoreEssay on The Credit Crunch2520 Words   |  11 PagesIn the late 2000’s what was known as the â€Å"Global Recession† or â€Å"The Credit Crunch† occurred. The only financial crisis comparable to the recent 2008 United State recession was the Great Depression, which occurred in the 1930’s. The financial crisis of the late 2000’s resulted in the downfall of the largest financial institutions as measured by market capitalization vales. The situation created the need for governments and regulators to bailout most banks and caused dramatic drops in stock marketRead MoreInformation Management Essay1355 Words   |  6 Pagesthese machines quickly evolved from punch card machines to mainframes and spools of magnetic tape. This led to the introduction of the Structured Query Language (SQL) in the 1970s. During this time, IBM mainframe computers were widely used in business3. The evolution of file-sharing and the World Wide Web in the 1990s as a medium of information archiving and organization had the biggest impact on the information management and consulting field. The introduction of the internet created an almost