A recession is an economic condition that is affecting America today. "A recession is a significant decline in activity spread across the economy, lasting more that a few months, visible in industrial production, employment, real income, and wholesale-retail trade"(About.com). "Recession is also a condition in which a nation's economic activity in production, consumption of goods, and services decline." It's a time period in which the economy comes to a stop ("Recession").
A recession starts when the economy is at a high point in output, employment, and ends when it's at a low (About.com). If sales of business rise slowly they may think about cutting back on orders for new goods. By cutting back, they also may force the manufacturers that supplied the good are forced to cut back on production. And when the manufacturers cut back on production, then they know need for a full work force, so that's when layoffs begin. Which brings the unemployment rate up. Then the workers that are laid off don't have much money to spend at the stores, so that decreases more sales and demand for goods. "As this pattern spreads, recession begins"("Cause of Recession"). The government may also start a recession by cutting back on spending. And when .
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they cut back on spending they may conduct a tight money policy. The tight money policy causes bank loans to be more expensive and harder to get a loan on a house or a car, which slows down the consumer demand. Consumers also play a big part in a start of a recession cause if they see a decline somewhere they may start cutting back on their spending habits. By doing this, they could bring the slump that they didn't want into development. Some of recession causes are from shortages from vital products. "For example, interruptions in oil shipments have caused recessions in many Western countries"(Mandel 3).
On November 26 the National Bureau of Economic Research announced that the United States officially fell into a recession.
