In the Wake of the Great Recession: Long-Term Effects of Fiscal Policy

Since the middle of the 20th century, the United States (USA) has experienced a depression of 10 concerns (BLS, 2012). Recent recession in memory created a depression and officially continued from the end of 2007 until mid 2009 (BLS, 2012; Economic Policy Research Institute, nd). Keynesian supporters promote government intervention when the economic situation deteriorates to rebuild consumer confidence, encourage consumption and promote economic growth (Gaber, Gruevski, & Gaber, 2013) .

Compared with the Great Depression, the economic downturn in 1937 was considered secondary, but also in the worst economic recession of the 20th century. Three reasons for the economic downturn were explained: fiscal balance after New Deal spending, monetary tightening policy of the Federal Reserve System, and austerity fiscal policy due to reduced capital investment due to reduced capital investment. The decline in government expenditure after World War II led to a sharp decline in GDP, which led to a depression in technology. This is the result of demobilization and the transition from wartime economy to normal economy. The postwar year is abnormal in many respects (the unemployment rate is never high), and this era may be regarded as "depression at the end of special war"

At the end of the Great Depression, the economic downturn was caused by the Federal government's efforts to tighten fiscal policy to balance the budget, Fed attitudes towards tightening monetary policy, and a reduction in corporate investment. As a result, the unemployment rate will drop to 19%, GDP will drop to -18%, and the economy will be confused. The collapse of the banking industry seems to trigger the Great Depression of the 1930s and a long recession, but there are many other factors such as lack of policies and direction for the government to apply broad tariffs in the 1920s there is. Because millions of people are still unemployed, this is the worst economic disaster of the 20th century.

Major depression in 2007 and the collapse of the real estate market: Why so many builders fail? Mohamad Ali Hasbini University in South Florida, hasbini @ mail.usf.edu