¶ … Macroeconomic Situation in the U.S.: Corrective Fiscal and Monetary Policy
December 2007 marked the onset of the Great recession, which ended in mid-2009 but left the U.S. economy struggling through the damage wrought by its severity. Federal policy has gone a long way in the prevention of an occurrence of another recession, but growth remains too sluggish and inadequate for the full-health restoration of the economy. Vigorous and sustained fiscal and monetary support is needed if the economy is to recover and achieve the pre-depression employment level.
Save for the temporary hiring of census officials, the overall economy recorded a drastic fall in employment levels during the last half of 2009. In December 2012, the unemployment rate was reported at 8.1% - approximately 3.5 percentage points above the average rate in 2007, at the end of which the Great Recession struck (Bureau of Labor Statistics, 2014). This rate further exceeds the peak rates recorded in the wake of previous recessions experienced at the beginning of the 20th and the 21st centuries (BLS, 2014). The tabular representation below shows the unemployment rates between 2007 and 2012.
Unemployment Rates between 2007 and 2012
Jan
March
May
July
September
November
Annual
2007
4.6
4.4
4.4
4.7
4.7
4.7
4.6
2008
5.0
5.1
5.4
5.8
6.1
6.8
5.7
2009
7.8
8.7
9.4
9.5
9.8
9.9
9.1
2010
9.7
9.9
9.6
9.5
9.5
9.8
9.7
2011
9.1
9.0
9.0
9.0
9.0
8.6
9.0
2012
8.2
8.2
8.2
8.2
7.8
7.8
8.1
(Source: Bureau of Labor Statistics, 2014).
Prior to...
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