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The coming depression blog | May 23, 2019

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Unemployment and Recession in US Economy – A vicious circle

A series of studies, statistics, forecasts and financial forecasts, the stock market’s statistics, real estate forecasts clearly demonstrate the economic recession in 2011. U.S. GDP fell by 0.2% in the third quarter of 2008, and economists expected the decline of 0.8% in the fourth quarter. For the recession now in 2011, we have a president whose message of hope got some rave reviews. The Recession our country is in now, has so many components, so many reasons. Looking back at previous recessions there were ever so many distinct causes of recession in the beginning.

The unemployment rate has increased, the gross domestic production has decreased significantly and personal income has been reduced. A key indicator of home sales that took a 30% month over month decline, happens to be the largest ever recorded. U.S. unemployment figures points from month to month, so the labor market will remain under pressure for some time. A major reason was the low wages. So to avoid a repeat of the crisis is creating more jobs, but with higher wages.

Unemployment in the country may be due to common reasons like population growth and competition. Millions of Americans are still struggling to find work, even after searching hard for an entire year. Some reasons are to blame for the unemployment rates. The recession led to a reduction in global economic growth of U.S. economy as the world is also in recession, with unemployment levels reaching record highs in many places.

The banking sector is under a cloud during the economic downturn, because it is easily seen that the number of bankruptcy filing has increased dramatically in the United States. If housing prices decline, as expected, it will only prolong the recession, as housing is the single biggest psychological impact on consumers, and when house prices fall, spending falls and the savings go up. This can lead to rushing-in of dollars to boost the sub-prime mortgage market. But since nothing real has been created the empty balloon will explode. It makes no sense to build houses for people who do not have a job at the end. There was nothing to support the economy, but an empty flask.

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