The Great Recession: Difference between revisions
Truthseeker (talk | contribs) Created page with "{{Short description|Global economic downturn from 2007 to 2009}} The '''Great Recession''' was a severe global economic downturn that began in the United States in late 2007 and lasted until 2009. It is widely regarded as the most significant economic crisis since the Great Depression. == Causes == The Great Recession was caused by a combination of factors, including: * The collapse of the U.S. housing market * Widespread use of high-risk subprime mortgage lending..." |
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== Causes == | == Causes == | ||
The Great Recession was caused by a combination of factors, including: | '''The Great Recession was caused by a combination of factors, including:''' | ||
* The collapse of the U.S. housing market | * The collapse of the U.S. housing market | ||
* Widespread use of high-risk subprime mortgage lending | * Widespread use of high-risk subprime mortgage lending | ||
Latest revision as of 16:04, 2 January 2026
The Great Recession was a severe global economic downturn that began in the United States in late 2007 and lasted until 2009. It is widely regarded as the most significant economic crisis since the Great Depression.
Causes
The Great Recession was caused by a combination of factors, including:
- The collapse of the U.S. housing market
- Widespread use of high-risk subprime mortgage lending
- Excessive leverage in financial institutions
- Weak financial regulation
The crisis intensified following the collapse of Lehman Brothers in September 2008.
Economic impact
The recession resulted in widespread job losses, sharp declines in household wealth, and a global contraction in trade. In the United States, the unemployment rate peaked at approximately 10 percent in 2009.
Government response
The U.S. government responded with large-scale interventions, including:
- The Troubled Asset Relief Program (TARP)
- Economic stimulus legislation
- Emergency lending programs by the Federal Reserve System
These actions aimed to stabilize financial markets and prevent a deeper economic collapse.
Long-term effects
The Great Recession influenced financial regulation, economic policy, and public attitudes toward inequality and government intervention. Its effects continued to shape economic and political debates throughout the 2010s.