Since the Great Depression ended, the Great Recession was the longest and deepest economic downturn. According to the economists, the Great recession has ended officially on 2010, but the impacts of the Great Recession still remain and threaten the world economy today. The recession is a period of decreasing economic growth because of the economic cycle in process. It is not a rare or unusual occurrence under capitalism; it will always inevitably happen under capitalism. .
The circular motion of the economy, which can be defined as the recession, has a goal to maximize the profits for the capitalist class. To maximize the profits, they have to minimize the cost, which the cost of labor or the wages for the workers takes most of the place. If the wages of the working class decrease, the purchasing power of the working class, who have the wage income as their primary or only source of income, diminished over time. So the capitalists start cutting back productions, leading the labors to lose their jobs eventually. Then, again, purchasing power of the working class will decrease furthermore, and the capitalist will again cut back the production and it will continue so on, forming a cycle to create a recession.
The current recession, which started on 2008, has being called the Great Recession. Since the Great Recession began, most of the people in the working class have suffered unemployment, a cut in pay, or a reduction in hours. Also, it brought the increase in poverty and homelessness, which are natural consequences of the recession. According to William Frey, who is a demographer at the Brookings Institution, the number of the poor children younger than 18 reached its highest level since 1962. Blacks had the highest child poverty rate at 39%, and Latino children accounted for more than half of the overall increase in poor children last year. .
However, the CEOs are not suffering from the effect of the Great Recession.
