美国发生经济危机英语（The Great Recession of the United States）

The Great Recession of the United States

Introduction:

The Great Recession of the United States is an economic crisis that began in 2007. It is considered one of the worst financial crises in the country's history. This article explores the causes of the economic crisis, its effects on the economy and its people, and the measures taken to mitigate the crisis.

Causes of the Great Recession:

The Great Recession was primarily caused by the housing bubble and the subprime mortgage crisis. The housing bubble was caused by the increase in demand for houses and the low interest rates on mortgages. This resulted in a surge in housing prices, and when the demand decreased, the prices of houses dropped, leaving many homeowners with negative equity (when the value of the mortgage is higher than the value of the property). This led to defaults on mortgages and foreclosures.

The subprime mortgage crisis refers to the issuance of mortgages to borrowers with low credit scores or low income. These borrowers were unable to pay back these loans, which led to the accumulation of bad debts for banks. The subprime mortgage crisis created a domino effect, where banks and financial institutions were unable to make repayments on their debts, leading to a liquidity crisis.

Effects on the economy and its people:

The Great Recession had a severe impact on the economy and the people of the United States. The economy experienced a significant contraction, and the unemployment rate increased, leading to a decline in consumer spending. The housing market crashed, leading to a decline in house prices, which left many homeowners in negative equity. The effects of the recession were not limited to the United States, but it had a global impact on the economy.

People lost their jobs and their homes, and many businesses went bankrupt. The recession had a severe impact on the stock market, with significant declines in stock prices. Many people lost their life savings due to the recession, and the cost of living increased, leaving the average citizen struggling to make ends meet.

Measures taken to mitigate the crisis:

The United States government took several measures to mitigate the Great Recession, including the creation of a bailout package for banks and financial institutions. The government also created the Troubled Asset Relief Program (TARP) to purchase bad assets from banks, providing them with liquidity. The Federal Reserve implemented a policy of quantitative easing, whereby it purchased treasury bonds and mortgage-backed securities to inject liquidity into the economy.

The government also implemented fiscal policies, including the American Recovery and Reinvestment Act (ARRA), providing stimulus packages to the economy. The ARRA aimed to create new jobs, provide tax relief to individuals, and invest in infrastructure projects to stimulate economic growth and reduce unemployment.

Conclusion:

The Great Recession was a catastrophic economic crisis that had severe consequences for the United States and the world. The housing bubble and the subprime mortgage crisis were the main causes of the crisis, leading to a severe contraction in the economy, high unemployment rates, and a decline in consumer spending. The government took several measures to mitigate the crisis, including the implementation of monetary and fiscal policies, aimed at injecting liquidity into the economy, creating new jobs, and providing stimulus packages. The effects of the recession are still being felt in many parts of the world, and the lessons learned from the Great Recession continue to shape economic policy and decision making.