The Great Recession
In 2008, the great recession occurred that was started by an 8 trillion housing fund plan to fall into pieces causing a domino effect. The failed housing fund resulted to the loss of wealth which eventually led to sharp cutbacks in consumer spending, by that time investors were in panic, but the worst is yet to come as financial market was also in deep decline.
In those troubles times the U.S. labor market lost 8.4 million jobs, which was equal to 6.1% of the total payroll in the country. This was the most dramatic employment since the great depression which occurred in 1981.
The U.S. Economy Now
The U.S. Federal Reserve released a statement saying that the world output has grown moderately but the path of the economic recovery has been brittle and inconsistent, but since the great recession, the country has managed to grow, 12 percent to be exact.
Although the recovery continues to grow weak according to the International Monetary Fund (IMF), The Huffington post stated that the U.S. Economy has recovered quicker than most countries that have been affected by the great recession.
American households can still feel the depressing state that was left behind by the events of 2007-2009 recessions. The U.S. Census conducted a survey, which shows that families in the middle class have significantly less buying power.
Another research firm conducted that at the pace the U.S. economy is right now, the number show that it is going to take until 2019 for the median household income to return to the levels that the people are more used to.
But why does the process of recovery seem to feel like the country is still in recession, this is because the economy is still on the process of bouncing back and there still a few years away from regaining everything that was lost during downturn.