Question

Do an Analysis of Macroeconomics dealing with the housing bubble also known as the recession of December 2007 on how minorities been disproportionately discriminated. Hint: Include stagflation and how veterans were affected after the Great Depression happened.

Answer 1

Recession occurs when GDP growth is negative for two consecutive quarters. 2008 recession started mainly due to subprime loan crisis and also due to over leverage by financial firms.

Around 2008, Minorities were having fewer good employment opportunities and lower wages because previous business cycle that lasted from March 2001 to December 2007 had very less jobs generated and this affected minorities badly. In 2008, unemployment rates for minorities were double than whites and this shows lack of income and lack of preparedness for recession. In recession, increase in the unemployment rate for minorities was at least 38.1 percent larger than that for whites.

Median income, home ownership was less and poverty more in minorities.

Recession made many financial firms especially banks go bankrupt and losing customer and investors confidence in an economy. This led to decrease in aggregate demand and also the supply was negatively affected. This created inflation plus unemployment in an economy.

Veterans mainly lost jobs and were unable to maintain life that they were living earlier.