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Essay / In the aftermath of the Great Recession: Long-term effects...
Since the mid-1900s, the United States has experienced ten notable recessions (BLS, 2012). The most recent recession was called the Great Recession, and it officially lasted from late 2007 to mid-2009 (BLS, 2012; Economic Policy Institute, n.d.). Keynesian proponents favor government intervention when economic conditions weaken in order to restore consumer confidence, encourage spending, and promote economic growth (Gaber, Gruevski, & Gaber, 2013). Generally speaking, at different levels of government in the United States, Keynesian economics is used in response to economic decline (Gaber et al., 2013). Fiscal policies aimed at economic expansion can cost taxpayers dearly, but so can a lack of response. In an effort to establish the effectiveness of fiscal policies implemented after the Great Recession, the long-term economic impacts of these policies were evaluated. This document provides the framework for establishing an appropriate fiscal policy response to future economic recessions. The remainder of the document is structured as follows. Background information relating to the Great Recession will be followed by a reflection on the relevant existing literature evaluating the success of fiscal policy measures. Once the questions to be evaluated are understood, the problem, purpose, and significance of the study will be discussed. Finally, a detailed discussion of the study approach and findings is included. Generally, a recession is an economic decline or a decrease in activity in the economy (BLS, 2012). The recession that Americans are most concerned about is the Great Recession, which has been considered the longest “since…… middle of article………529.” Retrieved from http://search.proquest.com.proxy1.ncu.edu/docview/347581655?accountid=28180 Ojede, A., and Yamarik, S. (2012). Fiscal policy and state economic growth: long-term and short-term. Economic Letters, 116(2), 161-165. http://dx.doi.org/10.1016/j.econlet.2012.02.023 Pollock, A. J. (2011). Boom and bust: financial cycles and human prosperity. Washington, DC: AEI Press.Recovery.gov. (nd). The American Recovery and Reinvestment Act. Retrieved from http://www.recovery.gov/arra/Pages/default.aspxU.S. Bureau of Labor Statistics (BLS). (nd). Local unemployment statistics: current state unemployment rates and historical highs/lows. Retrieved April 20, 2014 from http://www.bls.gov/web/laus/lauhsthl.htmU.S. Bureau of Labor Statistics (BLS). (2012). The 2007-2009 recession. Retrieved from http://www.bls.gov/spotlight/2012/recession/