The Early 2000's US Recession

[icebreaker]

The early 2000's recession in the United States was felt in 2002 and 2003. It was characterized by large layoffs, outsourcing, and a jobless recovery, with many formerly high-paid manufacturing and professional employees being forced into much lower paid service positions. However, many economists didn't consider this as a recession since 2 consecutive periods of negative growth didn't transpired.

In the year 2001, from March to November, the following incidents occurred that contributed to a relatively mild contraction in the North American economy: a collapse of the dot-com bubble, the unexpected September 11th attacks, and the accounting scandals.

[Bernardcraig20]

Knowing the current situation of our economy is very crucial. We have to be vigilant as to secure jobs. I hope for a very soon recovery from recession.

[icebreaker]

A recent recession in early 2000 was caused by the sudden decrease in activity of the dot.com industry. In the 1990s, the telecom industry had made huge amounts of money and began to overreach its expectations in terms of assessing future demand. Suddenly, the previously looked for demand was much lower than expected, leading to mass layoffs, decrease in production, and thus decrease in spending.

The dot.com fall is considered a “shock” in the GDP, which can fall sharply if the product or industry falls in production and spending. Though the recession resulting from the dot.com bust was considered over by 2003, it has far-reaching consequences that are still felt.

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