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A Green Degree Could Help Turn Red into Black
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A Green Degree Could Help Turn Red into Black

Date Added: September 01, 2009 11:17:40 AM
Author:
Category: Business & Economy: Employment and Work
 
One rule of thumb regarding history is that it tends to repeat itself. Could the current economic situation in the United States, which has stretched from 2008 to 2009, become somewhat reminiscent of what occurred during the recession of the early 1990s (and the aftermath)? Are there any similarities between the current economic crisis, and the one of the early 1990s? The answer could be fascinating to virtually anyone interested in the economy, including those with a green degree. Undoubtedly, the 1990s economic downturn was a recession. However, was it as dreadful as other recessions during the United States’ history? That is the million-dollar question. To fully understand how dire the recession was in the early 1990s, it is important to comprehend what precisely happened. That will shed some light on the matter. How bad was the recession of the early 1990s? Economics tend to categorize the recession of the early 1990s as less severe than the 1930s Great Depression and the recession that lasted from 1973-1975. However, the recession was nonetheless indeed a recession. Indicators such as a sustained drop in the nation’s Gross Domestic Product (GDP) and a lengthy period of unemployment were present. Some specific features of the 1990-1991 recession included: * Sustained shrinking economy * Skyrocketing inflation rate * High unemployment * Crashing of house prices However, perhaps the most dramatic indicator that the country was about to experience a recession, was then the Dow Jones Industrial Average dropped 22.6% in October of 1987. That day later was infamously termed “Black Monday.” Although the country rebounded, Wall Street’s collapsing created several long-term effects, such as the disintegration of Savings and Loans. The eventual recession would affect several allies of the USA, such as Canada, the United Kingdom, and Australia. Whether you have an economics degree or a green degree, the next major question is what caused the recession? One popular theory is that the base interest rate’s ballooning in 1989 triggered the economic nosedive. However, it is more likely that the boom that preceded it in the 1980s was the true perpetrator. During that decade, rock-bottom interest rates and inexpensive mortgages created a thriving housing market. Many experts are now assessing that the current housing downtown is significantly worse than the housing downturn of the early 1990s. However, it was nevertheless the housing boom that eventually pulled the United States out of that recession. Unfortunately, it seems unlikely that another housing boom (or Internet bubble) will occur this time. Thus, slow growth and unemployment could continue for years after the recession has officially ended. Nevertheless, the good news for those with a green degree is that “green jobs” could have the same impact as the 1990s housing boom. Some experts believe that the current economic situation in the U.S. could result in a “green revolution,” considering the increasing amount of scientific data revealing the Earth itself is experiencing a “recession” of sorts. New and revolutionary green programs in the public and private sectors could have a significant impact on the unemployment rate, and could actually create more jobs than the housing boom did following the early 1990s recession!
 
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