MPW Economics Discussion Board

Economics news post for AS and A2 students at MPW Cambridge - please add brief comments to stories you find interesting or relevant. You can: speculate on future trends; link in with other topics or units; interpret/analyse; evaluate (magnitude of change/short term/long term...); offer a personal evaluation (normative statements) but please offer evidence or an explanation. You can also evaluate other students' comments but please be professional in your response.

Saturday, 10 January 2009

US economy suffers worst year for job losses since 1945

2 comments:

Nicky said...: The world's biggest economy lost 524,000 jobs in December, which is in the total for the year 2008 just under 2.58 million...this is mainly caused by failure in lending money(banks to each other and) to people who wanted for example a mortgage for a house,because the price of houses was decreasing rapidly.people stopped spending money,so there is smaller demand for goods/services, therefore the producers/retailers are forced to close down and make redundant hunderds of people.; 11 January 2009 at 15:15
E. Vicente said...: These big number of unemployed people can lead to further costs to the US government because the government will spend more in unemployment benefits therefore government might have to borrow more. Moreover, the rise in unemployment can also explain the fall in consumer spending.; 11 January 2009 at 18:52

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