lost employment opportunities.

. American people lost employment opportunities. Companies closed shop based on the circumstances of the Great Recession. Great Recession led to the stagnation of the American economy. American companies lacked a competitive advantage in the market due to the financial mess that was experienced in the country. Social challenges were experienced with the American people. Americans were challenged to afford decent a meal hence leading to health challenges among a diverse segment of communities. People could not provide quality healthcare due to a lack of economic opportunities for them to pay for the services offered. In the long run, the United States of America lost its competitive nature in the market. Increased unemployment standards led to challenges in spending for the United States of America. The United States of America increased debt levels in the long run as spending was consumed in the recovery efforts of the economy.

Lessons have been learnt in the Recession as measures have been provided to safeguard financial institutions in the current dispensation. Risks analysis is often prioritized before any investments are undertaken with companies. Organizations tend to focus on affordability and sustainability of projects so that they may remain relevant in the market. Policies have been set to safeguard institutions that are economic indicators in the American economy from collapse. Comparisons that can be set concerning the Great Recession and the Great Depression is that there was a social catastrophe in both instances. Increased unemployment was documented in both circumstances. The government put measures to safeguard the economy from collapse as contingency measures. The differences are that in the Great Depression, there was a catastrophe impact on the whole economy where the government availed measures to create employment. In contrast, in the Great Recession, the government revived the failing institutions to revive the economy. The people of America suffered severe consequences in the Great Depression as compared to the Great Recession.

 

Question 2. When the government changed policies in regards to financial investments and banking, it was a guaranteed a catastrophe would ensue. Strategies that were proposed based on lobbyists ideas tend to end in challenges; instead, research should be the guiding pillar towards implementing policies. The housing collapse was based on greed, rather, investments. There were no mutual benefits among the investments institutions and consumers. Uncontrolled investments without underlying concerns of risks were the undoing of the housing bubble. When Congress repealed the policy in 1999, it was the beginning of the Great Recession.

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