American Government Research Paper Example | Topics and Well Written Essays - 2000 words

American Government - Research Paper Example The last part undertakes the critical evaluation of the policies undertaken and suggests optimal policy ramifications. The launch pad for the flight of the worst recession in the past six decades around the globe was unleashed in the mid of 2007 and continued over almost two years. The entire global economy remained shivering owing to its evil affects. Moreover this recession jeopardized the roots of the formidable US economy. The dark sides began to erupt with global job crisis and crisis-induced credit crunch that lead to trade collapse. Again high rate of unemployment in the OECD countries devastated millions of the civilians of the poorer countries sweeping them deep down into acute poverty (Verick & Islam, 2010, p.v ). The absolute damage to the financial sector was prolific. The entire globe moved into a shock as the stock markets crashed and the giant financial institutions collapsed or went bankrupted. Even the governments in the wealthiest nations came up with rescue packages to save their financial systems from further worsening. It was soon felt that this global financial meltdown would affect the livelihoods of almost everyone around the world in an increasingly inter-connected world (Shah, 2010). The paper will highlight on various factors of global economic crisis of 2008-2009 with major focus on the US economy and how far the key actors of the American government are successful in curbing the evil effects of the crisis on the US economy. The world economic crisis of 2008- 2009 can be attributed mainly to the combination of world macroeconomic imbalances and serious weaknesses in the U.S. and the western financial structure. The US exports in 1975, exceeded the foreign imports by an amount of $12, 400 million. But that was the last trade surplus the United States saw in the 20th century. By 1987, the American trade deficit   swelled to $153,300 million. The deficit diminished a