Impacts of the Great Recession on Floridians, Research Paper Example

Abstract

The main goal for this paper is to explain how the recession impacted the Floridians using the two interdisciplinary fields of Psychology and Economics. Various studies were conducted to develop this study. To demonstrate the results I found about this research topic, I used different data from these two fields in order to complete my research. However, I found that the recession left different results on people using these disciplines. For instance, for the Psychological field the recession revealed that the primary focus has been on its impact and meaning of unemployment. In comparison, I found that using the Economics study I could find that the main concern for Floridians lead to the problem of the housing bubble, Consequently Florida faced an extensive financial crisis that last almost a decade. Moreover, this paper provides research methods of literary studies, quantitative and qualitative data to better explain the phenomenon recession. Giving these facts, I could provide essential and valuable information that will contribute to the growing study of the impacted the recession had on Floridians.

The Impacts of Great Recession on Floridians

Introduction of Research

The financial status of every state in America has changed at the onset of the financial recession which has affected the major aspects of Americans as a whole (Gladstone, 2012). This research shall be based on the question with regards the possible impact that the great recessions have specifically directed to the lives of the Floridians. Relatively, in Florida, the people were affected as well, and for this particular research the said effect shall be measured based on two particular factors. Based on the psychological and economic aspects of human living, the changes that occurred in Florida and among its people shall be examined and analyzed accordingly (Gladstone, 2012). Considerably, these two factors of living were chosen basically because of the condition by which they specifically define the manner by which each person tries to understand the changes that occur around them thus adjust accordingly to such matters.

Review of the Literature

According to the Bureau of labor statistics and US department of labor In 2012, Florida was among the 40 states and the District of Columbia where all six measures of

Underutilization decreased over the year. Nine states had U-6 rates that decreased by more than 2.0 percentage points from 2011 to 2012, led by Alabama (-2.7 points), and Nevada and South Carolina (each -2.4 points). Among these nine states, five were in the West and three in the South. The U-6 rates rose in two states from 2011 to 2012. Delaware experienced the larger increase, up 0.7 percentage point to 13.9 percent. In New York, the U-6 rate increased 0.6- percentage point to 14.9 percent. The U-6 rate was unchanged in one state, Pennsylvania (13.9 percent).

Florida

http://www.bls.gov/lau/maps/aastrate.pdf Unemployment rate by State

The recession in Florida between 2008-2009 came by a big surprise for many Floridians. The impact of the recession destroyed many existing business, and ruined many families’ lives. The perception during the boom years, even before the crisis hit shows that the economy was as stable as suggested by the economists. A phenomenon called “loose monetary policy” was referred as a complex factor behind the emergence of the crisis. Another important factor was that the impact of the crisis on Floridians was somewhat diverse, and it reflected differences in initial vulnerabilities of economies. The recovery phase was subjected to a number of risks such as insuring that the recovery was creating more jobs, and challenging business growth in effort to make up for the losses that the recession left behind.

The recession had a very negative impact for a majority of people who relied in the accurate reports coming from the economics profession who were blamed for failing to recognize the catastrophic effects of that recession. As a result of that, Galbraith (2009) offers a robust critique of the economics profession and argues that both explicit and implicit intellectual collusion made it difficult for the leading members of the profession to encourage a genuine discourse based on alternative.

No one could say that the warning signs were not noticeable; most of us knew the large deficits in the US, UK and other economics that were being financed by the excess savings of emerging economies and oil exporters, loose monetary policy, the search for yield and lax financial regulation. It was obvious that all these factors contributed to the collapse of the economy. According to the Bureau of Labor Statistics, the strong characteristics of a recession is simply recognize a general slowdown in economic activity, a downturn in the business cycle, a reduction in the amount of goods and services produced and sold. According to their statistics report it showed during the recession in December 2007, the national unemployment rate was 5.0 percent, and it had been at or below that rate for the previous 30 months. At the end of the recession, in June 2009, it was 9.5 percent. Many months after the recession, the unemployment rate peaked at 10.0 percent (in October 2009). Before this, the most recent months with unemployment rates over 10.0 percent were September 1982 through June 1983, during which time the unemployment rate peaked at 10.8 percent.

Nevertheless, this research topic is conducive to interdisciplinary study by using the Economics, and Psychology view. First of all, the Economics problems leading to the recession began with a housing price bubble in many parts of the country and a coincident stock market bubble. These problems evolved into the financial crisis. …Recessions generally occur when there is a widespread drop in spending an adverse demand shock. This may be triggered by various events, such as a financial crisis which can cause bankruptcies for families, loss of properties etc…The governments usually respond to recessions by adopting expansionary macroeconomics policies such as increasing money supply, increasing government spending. The economists have to use different methods and policies to better understanding of that particular situation, and help to determine what the best decisions to change the recession are. Second, for the Psychology views it revealed that the primary focus has been on its impact. It is argued that the impact of unemployment and the ways it is coped with vary according to factors such as people’s perceptions of their situation. Therefore, there is a need for research into both the impact and meaning of unemployment. This thesis set out to contribute to the existing psychological literature by providing further evidence of the impact of unemployment and complementing this evidence with an analysis of the meaning of unemployment. Financial insecurity is a form of chronic stress that increases risk for psychological distress. The series of events leading into a recession can be especially distressing for older adults who see their savings accounts dwindling as they are planning for retirement. They will definitely help families to cope with the consequences of the recession. The impact of unemployment in families can be devastating causing divorce, bankruptcies, loss. It definitely changes people’s lives and affect their mental health.

The Theory Map from Repko describes the importance for the development of this research by different ways. It states that this theory can prove the effect Florida suffered during, and after the recession consequently leaving with double-digit unemployment and other factors that led to a dramatic slowdown in the population growth, especially for Florida that has drawn from the rest of the country since World War II. The Great Recession was severe for Floridians in many different ways. Many people lost their jobs and homes during the great recession leaving a lot of families without hopes. It took many years for Floridians to find a good job which enabled them to be able to pay for their debts. Their credits were destroyed, and they were not able to purchase a home on their own neither pay for their existing mortgage in an attempt to save their homes. The national unemployment rate had been above 8% longer than at any time since the Great Depression. During the housing boom, Florida’s unemployment rate fell below the nation’s, and accordingly rose above it following the bust. Even though the unemployment rate is down somewhat from the heights of 2009 and 2010, the employment to population ratio (for those 16 and over, right scale) remains flat.

Interdisciplinary Analysis

One specific matter in the field of psychology that has been observed and examined among the Floridians is that of their reaction and understanding of unemployment and the impacts that it has on their personal living conditions. Work, before the great recession in Florida, was considered to be a mere requirement to define one’s identity and status in life. For this reason, many individuals in Florida seek higher positions hoping to define their individuality according to their jobs or careers. However, at the onset of the great recession, perceptions about job and what it implicates on a being has specifically changed. Relatively, the ‘picky’ attitude of Floridians became more focused on having something to depend on and use to be able to survive the different conditions of living and adjusted matters due to the occurrence of the financial crisis (Gladstone, 2012). Work has become one of the most elusive yet the most important elements in life that mattered so much to the people. Each individual was wanting to grab any work, it did not matter what position it was so long as it did pay as much as the people needed to be able to survive another day.

Organizations on the other end took the advantage as they offer low level yet at least reasonably paying positions to Floridians. The people responded eagerly, hoping to regain their moral strength from being laid off from their old positions or simply from being unemployed as it is. Being unemployed during the time meant devastation (Gladstone, 2012). The vision over status quo has changed; people began minding the way they specifically mange the current situations that they had to deal with to be able to make sure that there is still something to look forward to in the future apart from being merely scared of what might happen next.

On the other end, when it comes to the condition of the economy, the people began to recognize its unstable position. They began to realize the fact that investments, if not taken care of properly or if not managed accordingly might cause them more losses than actually gaining profits in the future. This directly affected the industry of real estate. People in Florida then believed in real estate investments. However, when they saw what happened during the great recession, trust in such type of investment began to diminish. Relatively, it could be understood that more people believed that saving their money during the time to make sure they still have something to use in the years to come would be better than spending them all on investment defined possessions such as homes and lot ownership.

Summary and Conclusion

Overall, it could be understood that the great recession has imposed a sense of uncertainty among Floridians. The way they reacted on the financial crunch that recently happened around the globe placed them in a position that is most often than not hard to contend with. The adjustments they considered involved a redefinition on how they saw specific aspects of living which includes the way they analyze both the importance of employment against status quo and the value of savings apart from investing. Relatively, this phenomenon affected other states in America as well, nevertheless, Floridians tried the best they could to rise to the occasion and gradually make improvements thus saving their economy at present.

Works Cited:

Davis, S. J., & von Wachter, T. (2011). Recessions and the Costs of Job Loss. Brookings Papers On Economic Activity, (2), 1-55.

Dena B. Targ. (1983). “Women and the New Unemployment” The Study of Women: New Challenges Humboldt Journal of Social Relations, Vol.10 (2), 47-60. Retrieved from http://www.jstor.org/stable/23262318

Eamon, Mary K. (2013) “Employment, Economic Hardship, and Sources of Assistance in Low-Income, Single-Mother Families Before Versus During and After the Great Recession.” Journal of Poverty, Vol.17(2), 135-156. Retrieved from http://www.tandfonline.com/doi/abs/10.1080/10875549.2013.775995

Fischer, E. (2013), “Financial Insecurity and Deprivation”. Journal of Consumer Research, Vol 39(5), 8-10.

Faberman, R., & Foster, T. (2013), “Unemployment among recent veterans during the Great Recession”. Economic Perspectives, Vol. 37 (1).

Gladstone, Rick. (December 18, 2012). “U.N. Presents Grim Prognosis on the World Economy”. The New York Times.