Olivia Anderson

GLOBAL ECONOMY

Olivia Anderson MICDS Ms. Federman Global Issues Final Project

Overview: Between 2000-2009, it was judged that the economic crisis would be one of the worst since the Great Depression. The consumer’s confidence in businesses severely decreased, and people were afraid to spend money. As a snowball effect, the demand for goods declined, thus the unemployment rate rose.

The frightening recession served as a giant wake up call for governments around the world. Leaders tried to work together to halt and resolve the crisis

Why Is This Important?

First off… the economy affects everyone. With a weak economy, a nation and its citizens are very venerable. Businesses cannot grow, employ, nor purchase inventory to help their market The debt that a nation.

Accumulates affects your children, their children, and the nation’s ability to flourish & recover

“Recession is when your neighbor loses his job.

Depression is when you lose your’s.”

- President Ronald Reagan

History of Economic Crisis: In 2006, the housing market in the United States began to unravel.

Mortgages & loans began to rise, while housing prices decreased. The banks were not receiving enough money from those who bought a mortgage or took out a loan so foreclosures and severe debt started to become prevalent.

The severe debt not only loomed over the housing sector, but it also affected the credit sector within the banks. Asking for loans became nearly impossible so investment making was nearly non-existent.

Financial policies became relaxed, and the banks took complete advantage of the loose system and abused their rights.

salaries on the government’s dime, and huge holiday bonuses.

Tax evasion is a common practice that is accepted and embraced by much of the population. To fix the situation, Greece is cracking down on evasions and tightening paychecks. Greece called for a bailout from its surrounding countries, but many are unwilling to give money. Spain, Italy, France, and Germany are all very fragile economically, and they view Greece’s issue as a problem they brought upon themselves and should fix without their money.

Current Situations: GREECE- May 5 2010, protestors swarmed the streets of Athens, setting the finance ministry on fire. The protesting was fueled

by Greece’s recent tax hike.

Stocks and financial markets around the world are rapidly dropping due to the rising concern over Greece’s financial stability.

Factors in the CrisisFor decades Greece has been lax about its spending, paying out

JAPAN- Japan desperately needs reformation if they want to avoid the looming economic disaster.

Over the past two decades the country has stumbled in and out of deflation, slipped down the global league tables on many social indicators and amassed the largest gross public debt-to-GDP ratio in

the world. Despite the improving global economy, Japan cannot depend on foreign demand being strong enough to sustain its economy. In order to repair its economy, there must be an increase in productivity & strong reforms to boost growth & kick start the economy. Ways to revitalize their economy could range from freeing up the free market to reforming their tax system all together.

Global Effort: By early 2009, most economists declared that the majority of the world’s economies were in recession.

April 2009 the G-20 met in London to discuss a proper response to the growing economic crisis. G-20 consists of major industrialized and developing nations around the world. G-20 decided that a $1 trillion global stimulus would be used to boost the world economy. Most countries are on the road to recovery, but there is still much more to be healed.