The terrorist attacks on 9/11 took a toll on U.S. industries. The stock market plummeted in the days following the attacks. Airlines struggled to avoid bankruptcy as Americans, leery of airline travel, cancelled their travel plans.
The economy recovered quickly, though. Low interest rates and lax lending rules made it easy for people to buy homes. Many people bought larger, more expensive houses than they could really afford. Home builders built more houses than they could sell. House prices rose quickly. Growth slowed and housing prices dropped. It was the beginning of the Great Recession (2008 to , the worst economic downturn since the stock market crash of 1929 and the Great Depression.
Questions and Answers
Question: How can we prevent another recession?
Answer: The economy tends to grow and shrink in cycles that can’t always be predicted or prevented. Government and industries can help by keeping a healthy balance of regulation and not taking foolish risks. Individuals can be prepared for hard times by avoiding debt and living within their means.
Visit The State of Working America to read more about the Great Recession.
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Declan, Tobin. " Facts for Kids about the Great Recession 2007-2009 ." American History for Kids, Jan 2023. Web. 27 Jan 2023. < https://www.americanhistoryforkids.com/great-recession-2007-2009/ >.
Tobin, Declan. (2023). Facts for Kids about the Great Recession 2007-2009. American History for Kids. Retrieved from https://www.americanhistoryforkids.com/great-recession-2007-2009/