By Marie Frati and Emalee Ro
The Great Recession was the largest economic decline since World War II (Rich 2013). It was a period of severe economic downturn from December 2007 to June 2009 in the United States. During the recession, the national unemployment rate increased from 5% in December of 2007 to 9.5% in June of 2009, peaking in the months after the recession at 10% (US Bureau of Labor Statistics 2012). Real GDP also experienced a significant contraction, falling by 4.3% from 2007 to 2009.
Given such high levels of unemployment in the US during this recession, we became interested in changes in individuals’ quality of life. When people lose access to income, they will reduce spending and investment, potentially affecting their access to health and education. The Great Recession impacted the market for higher education: institutions faced supply shocks from the lack of government funding, as well as demand impacts due to families’ low income, unemployment, and wealth (Long, 9). Furthermore, rising unemployment led to income loss, increased debt, and greater financial insecurity for families (Long, 9). Continue reading