Great Recession

Definition

The Great Recession was a severe economic downturn that occurred in the late 2000s, characterized by a significant decline in economic activity, high unemployment, and financial instability. This event had a profound impact on public opinion and the effects of that opinion on the government and society.

5 Must Know Facts For Your Next Test

1. The Great Recession was triggered by the bursting of the U.S. housing bubble and the subprime mortgage crisis, leading to a global financial crisis.
2. The recession lasted from December 2007 to June 2009, making it the longest and most severe economic downturn since the Great Depression.
3. During the Great Recession, the U.S. unemployment rate peaked at 10%, with millions of jobs lost across various sectors.
4. The recession had a significant impact on public opinion, with many Americans losing faith in the government's ability to manage the economy effectively.
5. The effects of the Great Recession were far-reaching, leading to a decline in consumer spending, a drop in housing prices, and a loss of trillions of dollars in household wealth.

Review Questions

• Explain how the public's perception of the government's response to the Great Recession influenced their overall opinion of the government.
  • The public's perception of the government's response to the Great Recession played a significant role in shaping their opinion of the government. Many Americans felt that the government's actions, such as the bank bailouts and stimulus packages, were not effective in addressing the economic hardship faced by individuals and families. This led to a decline in public trust in the government's ability to manage the economy and address the needs of the people, which in turn influenced the public's overall opinion of the government and its institutions.
• Describe how the effects of the Great Recession, such as high unemployment and declining household wealth, impacted the public's opinion on economic and social issues.
  • The widespread economic hardship caused by the Great Recession, including high unemployment and declining household wealth, had a significant impact on the public's opinion on economic and social issues. Many Americans became more concerned about issues such as job security, access to healthcare, and income inequality, as they directly experienced the consequences of the recession. This shift in public opinion put pressure on policymakers to address these concerns and implement policies that could help alleviate the economic and social challenges faced by the public.
• Analyze how the public's perception of the government's role in the Great Recession influenced their expectations and demands for government intervention in future economic crises.
  • The public's perception of the government's role in the Great Recession, particularly its perceived failures in addressing the crisis effectively, influenced their expectations and demands for government intervention in future economic crises. Many Americans felt that the government's actions during the Great Recession were inadequate or prioritized the interests of large corporations over the needs of the general public. This experience led to a greater demand for the government to take a more active and proactive role in managing economic crises, with a focus on protecting the interests of individual citizens and addressing the root causes of economic instability.

Related terms

Recession: A period of temporary economic decline, typically defined as two consecutive quarters of negative economic growth.

Financial Crisis: A situation where the value of financial institutions or assets drops rapidly, often leading to a broader economic downturn.

Unemployment: The state of being without a paid job, leading to a loss of income and economic hardship for individuals and families.