The Never-Ending Financial Crisis of 2008 - 614 Words

Since it began in 2008, the US has faced what is being called the â€Å"great recession.† It is 2013, and it is clear apparent that it is a â€Å"recession† longing to be cured. Through the works of Putnam, Sum et. al., Wisman, and Colander, we can better understand this crisis and look for the best way to get out of it. To begin, Robert Putnam describes what has occurred in the U.S. over the past several decades. He states that over the past several decades the U.S. has been subject to â€Å"[an] economic and cultural [entanglement] a mixture of government, private sector, community and personal failings† (Putnam 2013, III). Putnam believes that this financial crisis occurred as a result of layoffs, and many closings of businesses (Putnam 2013, 2). We can further this understanding by turning to Sum, et. al., who believed that the crisis occurred due to the blue-collar workers who have lost their jobs, and might never see those jobs again (Sum, et. al. 2010, 6). Our next economist to turn to is John D. Wisman. In his article he describes what he believes to be the cause of the crisis. He states that this recession occurred centered upon inadequate regulation stemming from laissez-faire ideology, and low interest rates (Wisman 2013, 921). He further points out that an underlying effect of wage stagnation and dramatically increasing inequality in the US over the past 35 years may also be a cause. Now to the guy who wrote our current textbook, Macroeconomics 9th Edition, whoShow MoreRelatedToo Big to Fail: The 2008 World Financial Crisis and Its Aftermath1779 Words   |  7 Pagesï » ¿ Too big to fail: The 2008 world financial crisis and its aftermath The 2008 world financial crisis begin the banking and housing sector, but spread like a contagion through the entire economy. 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