美国高中assignment格式范文:Factors leading to the Recession

论文价格: 免费 时间:2019-07-04 10:42:44 来源:www.ukassignment.org 作者:留学作业网
1.0 Introduction介绍
Since the end of 2007, the world has undergone a series of major events, including: the occurrence of the subprime mortgage crisis, the occurrence of the debt crisis in Europe, the slowdown in the economic development of emerging market economies, a sharp drop in bulk cargo prices, such as oil prices, etc., the occurrence of these events have created a threat to the development of the world economy, which also marks that the world economy has entered a recession cycle (Acharya and  Richardson, 2010). The recession lasted for a long time, with great influence and great scale of recession (Astley, Giese, Hume and Kubelec, 2009). Until today, the outlook for the world economic recovery remains unclear and faces many risks. The causes of this recession are multifaceted, including the government's economic policy, the people's way of life, the development of science and technology, the economic cycle and many other closely related factors (Baily, Litan and Johnson, 2008). Understanding the causes of the recession has an important reference for thinking about how the global economy can escape from the recession. This essay analyzes these reasons and briefly recommends on how to get out of this recession.
2.0 Main body主体
2.1 Unbalanced economic structure经济结构不平衡
From the 1960s, the US-led developed countries adjusted the industrial structure to transfer some automobile, machinery and other manufacturing industries to other underdeveloped areas, making use of advantages of local resources for production and processing (Green, King and Miller-Dawkins, 2010). In the United States, for example, the share of virtual economy output represented by finance, insurance, real estate and leasing services increased from 8.63% in 1950 to 20.67% in 2007, and the share of GDP created by the real economy represented by manufacturing, construction and transportation fell from 41.25% in 1950 to 18.70% in 2007 (Taylor, 2009). The unbalanced economic structure caused by the recession of the manufacturing industry in the developed countries and the excessive development of virtual economy has foreshadowed the recession, because first, considering from the demand for investment in virtual economy, it was far weaker than that of traditional industries, the pulling effect of virtual economy on the economic development was relatively weak (Green, King and Miller-Dawkins, 2010). Second, with the shrinking domestic manufacturing in the United States and other developed countries, their consumption of goods was increasingly dependent on imports, resulting in the continued deterioration of the current account revenue and expenditure situation in these countries (Baily, Litan and Johnson, 2008). Finally, the manufacturing industry has been substantially transferred, a large number of funds were invested in the financial market and the real estate market, the virtual economy represented by the financial and insurance services, real estate industry developed rapidly, driving the economic development and leading to a virtual economic bubble at the same time, final rupture of the bubble led to a recession (Astley, Giese, Hume and Kubelec, 2009).
2.2 Aging society
The trend of population aging will reduce the potential economic growth rate (Felix and Watkins, 2013). Globally, the world-wide aging dependent ratio was 16 in 2010, that is, every 16 elderly people over the age of 65 correspond to 100 25- to 64-year-old workers, and the United Nations estimates that in 2035, the aging dependent ratio will rise to 26. In accordance with the standards of the United Nations, the population aging in the next few years will lead to 1/3 to 1/2 of economic slowdown in developed countries (Lin, Chen, Tsao and Hsu, 2017). The cause of the recession arising from aging is that, first of all, there is a significant increase in social welfare spending, and in some high-welfare developed countries, they are even at risk of bankruptcy of social security funds (Felix and Watkins, 2013); second, in aging society, there is the shortage of employees in employment, labor costs increase, dragging down the development of enterprises; finally, the aging society leads to the lack of social economic vitality, lack of innovation and lack of demand (Felix and Watkins, 2013).
2.3 Technological change
Total-factors productivity growth rate refers to the part of production capacity still increased when the input of the total production factors (including capital, labor, land, but usually, land is omitted in analysis) are unchanged, sources of total-factors productivity include technological progress, organizational innovation, specialization and production innovation (Ucaktürk, Bekmezci and Ucaktürk, 2011). Research results showed that global total-factors productivity (TFP) has been declining since 1980 (Petrakis, Kostis and Valsamis, 2015). Taking the global science and technology power: the United States as an example, during 1962-2004, the average TFP was 1.75%, during 2005-2014, it was only 0.875%, and it is expected that in the future world, TFP will continue to decline, the results show that role of technological change in promoting the economy is gradually weakening, indicating that the number of the world economy is growing and the quality has not been improved (Petrakis, Kostis and Valsamis, 2015). At the end of the 1990s, the pace of technological change was slowing down, and in many industries, the costs replaced technology and became the source of competitive advantage of enterprises. In order to gain the cost advantage, all the relevant countries had invested huge sums of money to expand the scale of production (Ucaktürk, Bekmezci and Ucaktürk, 2011). However, duplication of similar projects on the one hand wasted huge amounts of money, on the other hand, it caused excessive competition, triggering malicious competition and trade war to drag down economic development. This is particularly evident in many industries such as shipbuilding, steel, solar, panel and other industries.
2.4 Excessive consumption
Excessive consumption of consumers in developed countries, especially in the United States is one of the reasons for the economic recession, in order to stimulate economic development, the government has developed a series of systems to encourage consumers to consume in advance, excessive consumption will bring good to short-term economic development, but excessive consumption will temporarily stimulate the supply, so that the supply will grow extraordinarily (Kukk, 2016). However, once people spend all their money, or bear heavy debt, the economic bubble will burst, the demand will be weakened. Thus the extraordinary supply stimulated by the excessive consumption formed the so-called overproduction crisis, which was performed as deflation in price.
2.5 Increased gap between the rich and the poor
From the consumer demand point of view, the increased gap between the rich and the poor has a direct impact on the economy and makes the overall consumer propensity reduced, and thus inhibiting the consumer demand (Acharya and Richardson, 2010). A French economist  conducted a detailed study on wage wealth in the past 300 years in his "21st Century Capital", proving that as the return of investment is higher than the economic growth rate, the wealth of rich people’s will be increased faster, despite those who have assets and those who do not have can both make their wealth increase, but the gap between the rich and the poor has become very large, they further suggested that the gap between the rich and the poor in the world has deteriorated and will continue to deteriorate in recent decades (Green, King and Miller-Dawkins, 2010).#p#分页标题#e#
2.6 Too high economic leverage 
Before the crisis in 2008, countries around the world implemented loose low interest rate monetary policy, in a mobile flood environment, people consumed through borrowing, with a very small proportion of their own funds, businesses and banks were also through a large number of liabilities to achieve scale expansion (Baily, Litan and Johnson, 2008). High leverage in the case of out of control finally formed a financial expansion, financial bubble, and even the final financial crisis (Astley, Giese, Hume and Kubelec, 2009). After the financial crisis, governments are aware of the unsustainable nature of the high leverage (Acharya and Richardson, 2010). On the one hand, governments will introduce relevant measures to limit further economic levers to avoid its pressure on economic growth (Green, King and Miller-Dawkins, 2010). On the other hand, relevant financial sectors in the context of rising economic risks will be more cautious in lending, credit support for the economy will be reduced, which makes the overall economy bear the downward pressure (Baily, Litan and Johnson, 2008).
2.7 Economic cycle
Economic cycle generally refers to expansion and contraction changes in cyclical fluctuations in national income or overall economic activity. It is usually divided into four stages: prosperity, recession, depression and recovery (Hollander and Liu, 2016). In the 1990s, the world economic cycles driven by the new economy reached its bottom by the end of 2001, and the world economy gradually recovered in 2002 and 2003, entering a new round of growth. The financial crisis triggered by the outbreak of the subprime crisis in 2007 was a booster of entering the recession of the world economic cycle (Wegman et al., 2017). The outbreak of the financial crisis has increased the rate of the world recession to a certain extent, which had caused harm to the world economy and even caused serious economic recession, making the current cycle of economic recession extended (Hollander and Liu, 2016).
3.0 Conclusion
To sum up, the reasons for this recession are multifaceted, including not only long-term reasons such as entering the recession economy cycle, but also short-term reasons, such as industrial restructuring, too loose monetary policy, and so on. It includes both the reasons of economic aspects and the reasons of technological innovation, as well as social wealth distribution issues. Thus to go out of this economic recession as soon as possible, it can not reform only from one or two aspects, it needs a systematic, comprehensive and balanced view to reform. In addition, the recession is long and large, indicating that the current world economy is facing a great problem, the author believes that the economic recession can not be solved within a short period of time, and its solution requires more coordination around the world to solve the economy development, economic structure and trade imbalances, it also requires the emergence of new technologies and new industries to provide power for the next wave of economic take-off, there is the need for better balance of efficiency and fair relations to solve the problem of growing gap between the rich and the poor in the development of the economy at the same time.
Acharya, V.V. and M. Richardson (2010). Causes of the financial crisis. Critical Review, 21, 2-3.
Astley, M., Giese, J., Hume, M. and C. Kubelec (2009). Global imbalances and the financial crisis. Bank of England Quarterly Bulletin, 2009, Q3.
Baily, M.N., Litan, R.E., and M.S. Johnson (2008). The origins of the financial crisis. Initiative on Business and Public Policy at Brookings, Fixing Financial Series, 11, 3.
Felix, A. and Watkins, K. (2013). The impact of an aging U.S. population on state tax revenues. Economic Review, 4, 95-97.
Green, D., King, R. and M. Miller-Dawkins (2010). The global economic crisis and developing countries: impact and response. Working Draft for Consultation, Januaary, Oxfam Research Report.
Hollander, H. and Liu, G. (2016). Credit spread variability in the U.S. business cycle: the great moderation versus the great recession. Journal of Banking & Finance, 67(6), 37-52.
Kukk, M. (2016). How did household indebtedness hamper consumption during the recession? Evidence from micro data. Journal of Comparative Economics, 44(3), 764-786.
Lin, T. Y., Chen, C. Y., Tsao, C. Y. and Hsu, K. H. (2017). The association between personal income and aging: a population-based 13-year longitudinal study. Archives of Gerontology and Geriatrics, 70(5), 76-83.
Liu, W. and Moench, E. (2016). What predicts US recessions? International Journal of Forecasting, 32(4), 1138-1150.
Petrakis, P. E., Kostis, P. C. and Valsamis, D. G. (2015). Innovation and competitiveness: culture as a long-term strategic instrument during the European great recession. Journal of Business Research, 68(7), 1436-1438.
Taylor, J.B. (2009). The financial crisis and the policy response: an empirical analysis of what went wrong. NBER Working Paper, No. 14631.
Wegman, F. et al. (2017). How did the economic recession (2008–2010) influence traffic fatalities in OECD-countries? Accident Analysis & Prevention, 102(5), 51-59.
Ucaktürk, A., Bekmezci, M. and Ucaktürk, T. (2011). Prevailing during the periods of economical crisis and recession through business model innovation. Procedia - Social and Behavioral Sciences, 24, 89-100.

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