Job-Loss in the Recession of 2008

In 2008 there was a financial crisis that was seen to be "the worst economic disaster since the Great Depression of 1929." It was a matter of the U.S. banking system in America collapsing/failing and leading to a major recession. This all started as easily as 2006 when there were U.S. financial institutions were overlooking peoples who mortgages and credit were risky and could cause future problems. But as a result of this and the prices, a houses started to fall and become more affordable; many people considered and thought of as good timing for homes. This eventually lead people to take out a large amount of credit and loans, sometimes even more than the value of one's new homes and buy houses that were way out of their range and cannot afford. Coming out with up to 8 trillion dollars for housings worth of loans. As a result, there was a massive cut in consumer spending; as people had little money to spend while paying back the bank what they owed. As this factor became more common, consumer spending decreased, many stopped investing and buying products that made businesses run and the flow of money continue in the economy.

No money was going back to the pockets of these big companies and business and as a result, this lead to a massive amount of jobless. As said in a website on the Great Recession writing, "By comparison[2008 compared to the Great Depression], in the deep recession that began in 1981, job loss was 3.1%, or only about half as severe."  This meant a small but major impact on the population as it in 2000 it could take up to 3 1/2 years so people could recover from job loss. This was a time especially risky for those who were less educated and didn't have many studies as they were most defenseless and didn't have the education to back them up or able them to find a well-paying job again.

But as we go deeper into the recession and unemployment rate decrease we come to see that even those with degrees lacked in the strong suit to maintain or continue in their job as their paychecks became smaller and smaller and many suffered cuts and less cash than usual. As many who reentered the labor force tended to earn a significant amount less up to 17.5% less money than the old past employment. As a population lost jobs, lead to lower income and drops in money gains and spends and people became poorer could barely be able to pay off their bills and rents. The impact is important to understand how many people lost their jobs; and how when recovered, there were still a major amount of jobs that did no come back and the economy had fewer than before. The U.S. was not able to recovery this significant blow to the labor force and many found it hard to recover and come back from the down peak.

https://www.usnews.com/opinion/debate-club/articles/2017-01-19/history-will-look-kindly-on-obamas-great-recession-economic-response

https://www.britannica.com/topic/Financial-Crisis-of-2008-The-1484264

http://stateofworkingamerica.org/great-recession/

https://www.thebalance.com/2008-financial-crisis-3305679

http://www.nber.org/digest/sep11/w17040.html