1 2 3 4 5 Understand how the ripple effect has impacted businesses and families Know the video https www youtube com watch v UMqyi6s41iE Not going out as much eating out was the first cost eliminated Red stone grill lunch brunch Fewer people so fewer tips waitress not hiring pet sitter Cut back meat orders laid off butchers and truck drivers 800 people lose jobs every hour in US M lost jobs in January largest since WWII Can maybe see double unemployment by the end of the year What caused the recession as noted Know the first causes in a nutshell slide Irrational exuberance in the housing market led many people to buy houses they couldn t afford In 2006 the bubble burst as housing prices started to decline This caught many homeowners off guard who had taken loans with little money down As they realized they would lose money by selling the house for less than their mortgage they foreclosed Escalating foreclosure rates panicked banks and hedge funds secondary markets now realized they were facing huge losses By August 2007 banks became afraid to lend to each other because they didn t want these toxic loans as collateral Understand the specifics of Chicago s recession driven economic difficulties the Chicago region was responsible for about four percent of the nation s total gross domestic product in 2008 Its contribution to the U S economy ranks third Economic activity in the Chicago region has an impact on the U S economy as a whole and businesses within Chicago are an important driver of the regional economy Internationally recognized as a global city Chicago had the second highest unemployment rate at 10 0 experiencing higher unemployment than the nation as a whole 9 6 and the State of Illinois 10 5 What factors have caused the city of Detroit to have such a difficult time financially Described Detroit s unsecured debt specifics https www youtube com watch v 7rrovd0 8v4 1 8 500k people in largest city in US Can t service it all no tax base Owes 11 8 B unsecured notes to creditors 6 4 in secured M in other debt Deficit of 374 M say going to rise to 1 7 B 38 cents of every dollar in revenue goes to debt service will rise to 65 cents Can t raise taxes already at limit highest taxes to lowest incomes Pension and benefit obligations as well as general obligation bonds Could go to supreme court of whether or not can pay these City will have to prove its insolvent then restructure Big wave of other states doing this Understand Looking Back in terms of the middle class s views of opportunity and security today relative to the past Know specifics opportunity to get etc middle class has less opportunity today than before opportunity to get ahead 26 say more 21 say the same and 52 say less job financial security 16 say more 17 say same and 65 say less expendable income after paying for expenses 20 say more 18 ay same and 60 say less 6 What are the factors that have caused many middle class to go from working to homeless Layoff for jobs with few alternatives Multiple family commitments divorce kids Most people don t have enough savings for the rough patches Perceived as overqualified for many jobs Used to have decent insurance not now Kids daycare expenses 50 a day don t do it Gimme that house back the one that you couldn t afford in the first place Middle class shrinking 40 to the lower class 7 How have companies contributed to the flat paycheck recovery What consolations were noted in the article with respect to wages http blogs marketwatch com capitolreport 2014 08 19 your paycheck has been shrinking for 5 years tab print Since the Great Recession ended five years ago the amount of money Americans earn each hour after adjusting for inflation has actually fallen And that largely explains why the U S economy is growing just 60 as fast as it normally does Hourly wages have risen about 10 overall since June 2009 to 24 45 an hour But over the same span they ve slipped 0 3 in inflation adjusted terms Companies can be very choosy about who they hire because of a slack labor market and they have more bargaining power than prospective employees when it comes to setting salaries More companies also rely on temps and part timers especially in faster growing industries such as retail that don t pay great in the first place The one small consolation in the wage outlook is that an improved economy is keeping workers on the job a bit longer So the average weekly paycheck has risen 1 7 overall since the recession ended adjusted for inflation It s not much but it s better than nothing Federal Reserve officials and many private economists insist wage growth will accelerate as the unemployment rate moves lower and workers gain more bargaining power as companies compete for a dwindling pool of talent 8 Major finding of the attached article were what How did men and women respond differently to questions posed by the researchers http www csmonitor com Business Latest News Wires 2010 1026 In US a job means less than it used to Jobs may be in short supply but they re not nearly as valued as they used to be Americans questioning the wisdom of career related sacrifices including time away from family less leisure time and fewer self improvement activities workers focus toward home and family 37 are questioning how important work is at all 42 percent of workers surveyed said that most of what happens at work is out of one s control regardless of commitment and effort As a result 43 agreed that the recession has increased their motivation to be a better person rather than just a better employee Men s remorseful thoughts were driven by recession related job insecurity and its subsequent role in encouraging hostile work treatment Women were triggered by conflicts between work and family obligations Women reported that job obligations have increased in recent years both in terms of time and energy resulting in fewer hours engaged in family life 9 Describe the salary disparity documented to exist in the state of Florida FL women are better than average US women 80 cents vs 77 cents to a mans dollar Regardless of race full time FL women make less than men White man 1 but white female 78 cents black 61 Hispanic 57 10 Why do male nurses often make more than female nurses according to the research Know the factors Men make up about 10 of all registered 3 in 1970 Men have ditched other dude jobs for something more stable The difference in earnings is partly due to the fact that men were more likely than women to work full
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