Thesis: Although many economists reported the end of the recession in June of 2009, this paper argues that the increasingly inflated prices for goods and services, the deflating employment wages, the larger lower class and the diminishing middle class are evidence that the recession has not ended.
I. Economic recession, a period of time when the country’s economy is doing poorly, is important to everyone because there are so many negative impacts. Many people in the middle class have already experienced great losses and entered into poverty. Working people cannot buy as much with their paychecks because the money they make does not buy as much as it once did. Both of these reasons point to the downturn in the economy which slows the recovery and makes the recession worse.
II. An economic recession means that citizens suffer because they may lose their jobs and even their homes due to the inflation of prices and the deflation of wages as well as the possibility of entering poverty.
III. During 2007 the USA entered an economic recession which still exists, although many claim it ended in 2009.
A. The currency issued by the government loses value compared to other currency of other countries.
Imports exceed exports which mean the country is not making any money on the products that it exports because too few are being exported.
Although many people are thrown into poverty some people do increase their wealth. (Kolodko, 2009)
B. The majority of people in the US are being negatively impacted by the economic recession which causes a rise in the degree of inequality.
The lower class is gaining in numbers. Rates of poverty are increasing quickly. (Easterly & Fischer, 2009)
The middle class is shrinking.
Increase poverty means a higher degree of inequality. (Kolodko, 2009)
Inequality becomes larger when unemployment increases.
C. Poor health services are a sign of the economic recession.
Gelberg, Anderson, and Leake (2000) reported in Health Services Research that most of the US population did not have access to health services because there is no national health care insurance
Women are the largest group negatively impacted by poor health services. They do not have health insurance; there is no national health insurance and no safety nets. Women and families in especially stressed and vulnerable socioeconomic situations are hurt the most so children often suffer. (Gelberg et al., 2000)
Gelberg (et al., 2000) reported that homeless women often have many children but are too poor to have health care plus they are living a risk filled life.
D. Crimes and violence increase because of recession.
Box (2007) reports that the number of crimes increase due to unemployment, poverty, and idleness.
People have to steal so they can buy food.
E. The education sector becomes divided with a deep inequality. (Somersalo & Solantus, 2010)
Children in rich families are better educated because their parents can afford it.
Children in poor families do not receive a good education which results in not being hired for a good job later in life.
F. Counter argument offered by the National Bureau of Economic Research (NBER).
The NBER reported that the recession ended in June 2009.
The recession was the longest “downturn since the Great Depression of the 1930s. (Kaiser, 2010)
President Obama said that economist may have seen an end to the recession but millions of other people had not.
G. People should be very angry about this state of affairs. They need to make their voices heard and this can be done by joining organizations such as the Occupy Movement. Each citizen has the right and responsibility to become an activist for equality, excellent health cared and excellent education.
Works Cited
Box, S. (2007) Recession, Crime and Punishment. New York, NY: Barnes and Noble.
Easterly, W. & Fischer, S. (2009). Inflation and the poor. Ohio: Journal of Money, Credit, and Banking.
Gelberg, L., Andersen, R., & Leake, B. (2000). The Behavioral Model for Vulnerable Populations: application to medical care use and outcomes for homeless people. Health Serv. Res., February, 34(6): 1273–1302.
Kaiser, E. (2010 September 10) Recession ended in June 2009: NBER. Reuters online, Retrieved 7 November 2012 from http://www.reuters.com/article/2010/09/20/us-usa-economy-nber-idUSTRE68J2JJ20100920
Kolodko, G. (2009). Incomes Policy, Equity Issues, and Poverty reduction in Transition Economies. The Political Economy of Post Socialist Transformation, 2009; 103-213.
Saunders, P. (2012). Policy, Inequality and Recession. Oxford University Press.
Somersalo, H. & Solantus, T. (2010). Economic recession and inequality in education: Children needing special services focus. New York, NY: Routledge.
