The Effects Of The Recession On The Economy And It s...

In the year of 2007 Americans were plagued with a recession that negatively impacted the US economy and it’s citizens. Economic activity slowed down, a downturn in the business cycle occurred, and the amounts of goods and services produced were reduced (Census). Many individuals will take their own opinion on this crisis, and the root cause. The truth is, there are many causes of the 2007 recession: the actions of the banks and their consistent lends on mortgages, the actions of humans and their inability to save and invest, and the unresponsiveness of higher authorities all contributed to this mess in several ways (Thomas, Bill). However, the main causes of the financial crisis are due to the optimism of experts, investor and human behavior, and the theory of evolution. In the following, I will demonstrate how these three factors lead to the recession. First, I will explain thoroughly the nature of these ideologies. Next, I will demonstrate specifically how these factors built up to the recession by stating facts and giving evidence. Finally, I will conclude this essay by demonstrating the importance of being knowledgeable of the main causes of the 2007 recession, and how it will help in future economic activity. Positivity is one factor that influences individuals in a variety of ways. Happiness brings forth more opportunities. In the world of economics, it has been known to create an opportunity for more spending. American optimism contributed to the financial crisis.Show MoreRelatedRunning Head: Great Recession 1. Great Recession5. . .884 Words   |  4 PagesRunning head: GREAT RECESSION 1 GREAT RECESSION 5 Great Recession Name Institution Great Recession There are times when a nation undergoes economic hardship for a long or short period of time. 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