Essay About Economic Crisis

Global Economic Recession Essay
An economic recession is described as "a widespread decline in the GDP and employment and
trade lasting from six months to a year." (Word Net) The economic recession is an international
problem that has been affecting countries like the United States, China, United Kingdom and others
for over two years. The latest recession began when house prices and sales began to fall and large
drop offs in business investments started. Another causing factor of the recession was citizens with
bad credit buying houses and real–estate and mortgages not being paid. Countries began taking
action in 2008 by implementing stimulus packages and bailout plans, which can help a country
locally, federally and on a global scale. TheUnited States stimulus...show more content...
With the 2009 stimulus package, the focus shifted from bailouts and large sums of money given to
corporations, but too investing in infrastructure, health and other public services.
In the 2009 stimulus package, $111 billion was set aside for infrastructure only. This includes
federal buildings, municipal buildings, municipal recreational structures, roads and bridges and
several other areas of construction (Hossain, and Cox). Money was also invested into social
services, including education, where $53 billion has been dedicated to. This money has gone
straight into schools that need some extra funding to remain open, and to prevent cuts in staff.
This way, the level of education remains high, whereas schools closing would cause dropout rates
to be higher, and averages to be lowered. In 2009, the US government also invested $87 billion
into several States to cover Medic Aid costs (Hossain, and Cox). The government has also
investing large amounts of money to repair roads, highways, rail ways and important bridges.
Another focus for the US government is to make public transit easier to access for the public to cut
down on citizens driving to work every day.
Recently a large focus for countries in economic recession, namely the United States, has been to
begin a new green initiative. In the United States, a large amount of money has
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The 2008 Financial Crisis Essay
Introduction
In 2008, the world experienced a tremendous financial crisis which rooted from the U.S housing
market; moreover, it is considered by many economists as one of the worst recession since the Great
Depression in 1930s. After posing a huge effect on the U.S economy, the financial crisis expanded to
Europe and the rest of the world. It brought governments down, ruined economies, crumble financial
corporations and impoverish individual lives. For example, the financial crisis has resulted in the
collapse of massive financial institutions such as Fannie Mae, Freddie Mac, Lehman Brother and
AIG. These collapses not only influence own countries but also international area. Hence, the
intervention of governments by changing and...show more content...
The economy is known as a new emerging economy especially after entering WTO in 2007. The
Foreign Direct Investment (FDI) has increase considerably and the GDP is over 8% in the period of
three years (2005–2007). Nonetheless, it is clear that the economic instability occurs after WTO
accession of Vietnam 1 year. Consequently, the economy has suffered surginginflation as well as
trade and fiscal deficit. (Figure 1) GDPCPI
20058.48.3
20068.27.5
20078.58.3
20086.223
20095.36.9
Figure 1 : GDP and CPI 2005–2009 (% change per year)
Source: Asian Development Bank and Vietnam
B. Inflation
Inflation doubled in 2007 and reached a peak at 28% in 2008.The fiscal make up 4–5% GDP and the
trade deficit accounted for 20% GDP in which approximately $US17.5 billion dollars. The influence
of high fuel combine with food prices and high domestic demand lead to high inflation. The high
price of fuel in Vietnam illustrates global fuel prices and the high domestic demand of country
importing fuel. Furthermore, the increase in global food prices affect detrimental to the high
inflation in Vietnam.(Figure 2) Figure 2 : Fiscal Deficit and Trade Deficit (2003–2008)
Source : IMF, General Statistics Office of Vietnam
C.Impact on Trade
The global financial crisis has affected severely on Vietnamese exports. After joining the WTO,
Vietnam's trade has become depend on global

The Greek Financial Crisis Essay examples
The Greek Financial Crisis
Ever since the end of 2009, Greece has been involved in a financial and economic crisis that has
been record breaking and shattered world records in terms of its severity and worldwide effects. The
Greek government, since the beginning of the crisis, has attempted to take several governmental
measures to try and "stop the bleeding," including economy policy changes, dramatic government
spending and budget cuts and the implementation of new taxes for citizens. In addition to this, the
government has tried to alter the perceptions of Greek government and economy by the rest of the
world in an effort to appear both more liberal and more democratic. Greece has also been working
to privatize many previous...show more content...
As far as Greece's role in creating this crisis in the first place, it can be said that Greece is at fault
for a variety of reasons. The media has been focusing on the corrupt political system and
infrastructure, the lack of competition in the private sector, the wastefulness and inefficiency of the
public sector and a flawed tax system as causation for this mess. When the public sector was
expanded in the 1980's, Andreas Papandreou was given various agricultural subsidies and grants to
do with what he pleased. This enabled the funding of certain post–World War II groups to heal
political wounds and fund unions and other special interest groups to aid his political capital and
strength. The policies enacted in this decade allowed for the increase in power and funding of the
middle class by creating a vast amount of inefficient public sector government jobs for citizens. This
resulted in an increase in the levels of inefficiency, bureaucracy, corruption and wasteful spending
coupled with the increase in wages, pensions and benefits. This proceeded to drain through
government money and resources, and did not breed a culture of highly motivated, efficient and
effective government employees. A high amount of debts accumulated as the nation continued to
proceed in this way, using state money to subsidize failing businesses

American Bankruptcy Case Study
Starting from the problems of failure to pay housing loans (subprime mortgage defaults) in the
United States (U.S.), then bubbled damaging crisis banking system not only in America but
expanded to Europe and to Asia. Successive causes a domino effect of the solvency and liquidity of
financial institutions in these countries, which among others led to the bankruptcy of hundreds of
banks, securities firms, mutual funds, pension funds and insurance. The crisis then spread to parts of
Asia, especially countries such as Japan, Korea, China, Singapore, Hong Kong, Malaysia, Thailand,
including Indonesia, which happens to have long had precious letters these companies.
Of the various criticisms of the experts, that the problem was triggered...show more content...
Lehman Brothers announced a gradual loss before bankruptcy. On June 16, 2008, the company
announced losses worth 2.8 billion U.S. dollars for the second half of 2008. Followed by a loss of
3.9 billion dollars in the third half of 2008 (September 10) and resulted in bankruptcy announcement
on September 15, 2008. A similar shock is almost the same experienced by Merryl Linch, Citigroup,
AIG and various other large financial institutions.
This reflects the weakening of the real sector with the bankruptcy of major U.S. companies like
General Motors, Ford, and Chrysler that threaten thousands of its employees work. Sure enough,
the U.S. unemployment rate reaches 6.7% increase in line with the increase in pessimism among
consumers and investors during the period September to November 2008. It is the job separation
rate (FLE) in the 34 largest last year. Recorded 533,000 employees laid off and reached a total of
1.91 million in 2008. (source: the U.S. labor department). Along with that, on November 30, 2008,
the U.S. government also announced a reduction in the value of real GDP for the part–III of 2008
by 0.3%.
Similarly also in Europe, the banking crisis in Europe was marked by problems at a small bank in the
UK, the Bank Northen Rock, in mid–2007. Northern Rock is a true small–scale private bank in the
UK. However, when there Gonjang–ganjing crisis in August 2007 and the bank became the
spotlight. Withdrawal of major funding by the client

Essay on Russia Ukraine Crisis
Why Russia–Ukraine crisis was caused by Russia's attempt to protect its economy and sovereignty.
The topic of international relations has been gaining significance in the modern world following the
increase in the popularity of globalization and the need for peaceful coexistence between nations.
The high rate of advancement of communication technology, complex global economy, faster means
of transport and an increase in value for cooperative relationships are vital to the global society
(Almoni 1). A positive relationship between countries, especially the neighboring ones is expected to
facilitate the formulation of effective trade agreements. In addition, the issue of immigration or
movement of people from one country to another cannot...show more content...
However, Russia refused to acknowledge the new leadership stating that it came into power through
unconstitutional means and armed insurrection. This was cited as the major excuse for Russia to
deploy troops in Crimea to protect the majority Russian residents from extreme right forces.
The two countries, Russia and Ukraine, had different reactions towards the armed violence and
impeachment of the Ukrainian president. Although the majority of the Ukrainians opposed Viktor's
decision to procrastinate the signing the EU–Ukraine integration agreement, all the ex–presidents
accused for its interference with the affairs of Crimean. The former presidents of Ukraine, including
Leonid Kravchuk and Leonid Kuchma described the present crisis as Russia's political interventions
designed to interfere with the internal affairs of Ukraine and its relationship with the European
Union (Hanschke 1). The people of Crimea have not been seeking for secession from Ukraine, but
their interest is to have extended autonomy and rights to govern the Crimean affairs with minimum
involvement of the government of Ukraine. Russia, on the other hand, have dismissed the
accusation and stated that it is pursuing the interest of the people of Crimea to join the Federation
of Russia. Russia holds that the people of Crimea have the power to decide the future of their
territory and Russia will be ready to respect their decision. Study shows that about 90

Economic Crisis
Stabilization in the Wake of Economic Crisis Perhaps the most significant reason Pittsburgh was
able to recover from the collapse of steel was the decision, made early on by city officials and local
developers, to seek out new industries rather than cling to the vestiges of the old. Beginning in 1981,
the Allegheny Conference (ACC), a non–profit coalition of local business and political leaders, made
economic diversification their primary goal. The conference established a committee whose sole
task was to promote new industries. The committee's chairman said, at the outset, "we must
diversify...this time we must build new industries, new jobs." Over the next decade, the ACC helped
secure financing for development projects throughout the...show more content...
Symbolic of the success of that initiative, in 1990, Pittsburgh succeeded in capturing a $370 M
investment in from the Sony Corporation to build their two newest television manufacturing plants.
Overall, these measures to stabilize Pittsburgh's economy were remarkably successful. Between 1982
and 1990, Pittsburgh's employment rate dropped 12.6% (from 17% to 4.6%). For the remainder of
the decade, the unemployment rate hovered В±0.5% compared to the national average. Thus, the
successes of the late 1980s gave Pittsburgh had the breathing room to pursue longer–lasting,
economically sustainable reform. New Pittsburgh (1986–Present) Much of the success of the mid
/late–1980s were the result of massive economic stimulation measures rather than organic growth.
Therefore, after the city recovered from the collapse of the early 1980s, city officials and local
developers continued their plans for further economic development. City officials used the successes
of the late 1980s as a springboard to create the highly diversified economy necessary for sustained
economic growth. Since 1990, the focus of economic growth in Pittsburgh has been in three largely
codependent sectors: education, healthcare, and high–technology. Higher Education Since 1990,
Pittsburgh's institutions of higher education have largely driven its economic

Venezuela Crisis Essay
The oil–rich Bolivarian Republic of Venezuela, located on the northern coast of South America, was
for many decades considered among the wealthiest nations in the entire continent. While having the
largest proven oil reserves in the world has often proved a tremendous boon for Venezuela, the very
black gold that has been the cause of its success has also proven to repeatedly be its kryptonite.
Over half of the nation's Gross Domestic Product stems from petroleum exports – which equates to
approximately 95% of total exports. It is really not too hard to imagine what drastic consequences
shifts in global oil prices could have on the economy. With the huge glut in old prices that began in
2014/15, the Venezuelan economy took a complete nosedive....show more content...
He had established Mercals, or people's markets, where various basic goods were distributed by the
state at highly subsidized prices. A few years into power, in 2006, just short of 16,000 stores
across the country was offering subsidized goods at approximately 30 percent less than market
prices (Weisbrot and Adndoval 2007, 2). This led to over 9 million people purchasing their food at
Mercals by

Essay about U.S. Economy
The United States economy is currently not looking very good. Over the past couple of months
the economy has taken a turn for the worst and we could be headed into a recession in the coming
months or years. The biggest problems are in the real estate and mortgage markets. In 1999,
housing prices rose at huge rates and lenders began offering riskier mortgages, which caused
homeowners to keep piling up huge debts. People were taking out loans and balloon mortgage
payments that they really could not afford. The problem began in late 2007, when housing prices
began to fall and the system fell apart causing huge numbers of defaults on home loans and
foreclosures. Currently, 5.6% of mortgages are delinquent, the highest rate in 21 years, and...show
more content...
The housing crisis that I mentioned earlier and resulting backlash through the entire economy has
been building for awhile now but it has just came into the forefront in the past couple of weeks.
We really haven't faced a downturn like this since the Depression. Last Tuesday, January 22, the
Dow Jones industrial average fell almost 600 points and was already down 9% in 2008 (Gross 1).
Immediately the Federal Reserve took action and cut the interest rates three–quarters of a percentage
point, the biggest cut in 24 years. Today, not even a week later, the Fed again cut interest rates, this
time by a half–point (Aversa 1). This move is an effort to keep the economy out of a recession by
getting money back into the banks and encouraging them to keep lending credit to turn the
economy upward. Whether or not it will work remains to be seen in the coming months. The
government also announced another move to a couple weeks ago to help get the economy going
again and avoid or slow down a recession. President Bush and the House are currently developing a
$145 billion stimulus plan that would give tax relief to citizens by sending them individual checks
for $300 and up. The plan would put over $100 billion into the hands of consumers and the
government hopes that money would be spent and put back into the economy (Wolf 1). While all
these things are good news for the struggling economy, most economic experts believe that a
recession of some kind may be impossible to avoid

Economic Problem Essay
Along with the development of the earth is a series of social events need to be addressed, such as
population growth, food shortages and water shortages in many parts of the world. Specifically,
people in Australia are facing with the threat of water shortage in the future. This problem has
created an economic problem and urged the Australian government to find the solutions for this
problem. This essay will explain the economic problem and answer the question how do markets
attempt to solve the problem of water scarcity in Australia, focusing on the economic problem, water
scarcity in Australia, the role of markets and water market in Australia.
The economic problem can be known as the competition between unlimited wants and scarce...show
more content...
In order to solve the economic problem, we must choose how to use our scarce resources efficiently.
If the choices are made, sources can be used efficiently. For instance, the Australian Governments is
restoring the Balance in the Murray–Darling Basin to keep the water in this basin and protect the
environment. They are making decision since the water is scarce. Australian Governments (2010)
showed that water which available in Murray–Darling Basin declines, so this basin is likely to
become worse. The problem is water in Australia is not unlimited. We therefore have to make
choices. The choice can be known as opportunity cost. Since we never have enough resources at
our disposal, we have to give up something in order to get another thing we want. For example,
Morton and Shippen have to make the decision between selling water to the government or keeping
the water for their using and their agriculture. If they decide to keep the water, the money from
selling water is forgone and vice–versa. So, scarcity forces making choice.
The role of market can help solving the economic problem. A market can be known as an actual
place where buyers and sellers interact to trade goods, services for money. They interact in the
market to determine the price.
The diagram shows the way market finds the price for water. At point E, quantity demanded equals
quantity supplied and the price of goods that customers are willing and able to buy equals the price
of goods

Essay About Economic Crisis

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Essay About Economic Crisis