I’m trying to study for my Psychology course and I need some help to understand this question.
The great recession forced many families to alter their way of living. After reading this week’s lessons, please share at least 4 ways the great recession impacted families negatively. Was there a difference in how the recession impacted minorities? Please explain.
Minimum 250 words answer
Hello classmates and Dr. Hubbs, the recession affected many Americans and their families in negative ways to include homelessness, increase in extended family households, unemployment rates increased, and affected child development. First let’s start with the increase in unemployment rates because this is where the spiral started. With the number factories closing their doors due to the market decline and companies outsourcing, Americans started to get pay cuts, forced to work part-time, or became unemployed resulting in the spending habits declined across the board. Between 2007 and 2009, unemployment rates increased from 4.6% to 9.4% making it harder for Americans to stay above the poverty line (CHFD225, Lesson 3, n.d.). Households decreased their spending on health care, food products, and prescription drugs affecting their overall health. A survey was conducted, and they found that during November 2008 and June 2009, nearly 40% of families suffered from financial distress at least once during that 17-month time period (nber.org, n.d.). Unfortunately, minorities experienced higher unemployment rates compared to their white counterparts. By 2010, the unemployment rate for blacks was 16% and Latinos was at 13% even though the overall unemployment rate was at 10% (Huyser, Medeiros, & Sánchez, n.d.). With the unemployment rate increasing drastically, Americans were unable to afford their home mortgages or rent causing them to either move in with other family members or become homeless. During the early 2000’s credit became a lot easier to get and Americans were purchasing homes for the first time or taking out second mortgage loans on their current homes making the household debt increase over 900 billion dollars before the market crashed (CHFD225, Lesson 3. n.d.). Families had to sell their homes for far less than what they purchased them once the recession came along. Which leads me into how children development declined due to the recession. Children need to have their parents’ attention and investment to thrive. When a family’s socioeconomic status declines and the family ends up in poverty, their child’s development ends up being compromised (Mistry & Wadsworth, 2011). A lot of families had to move, especially the minority families because they couldn’t afford to live in the nicer neighborhoods anymore. Children who are in poverty and unable to eat healthy foods or live in nice neighborhoods, not being able to go outside and be physical end up developing under the scale compared to the ones above the poverty line, making them at higher risk for health issues (Mistry & Wadsworth, 2011). Parents also tended to place stress and anger on their children. The higher the stress, the less the parents are engaging and responsive to their children and end up being more harsh, inconsistent and inflict physical punishment on their children (Mistry& Wadsworth, 2011). The Great Recession was extremely harmful, but it did show us how to hopefully make sure it doesn’t happen again. I hope you all enjoyed my forum post and I look forward to your comments.
CHFD225, Lesson 3. (n.d.). Retrieved from https://apus.brightspace.com/shared/elf/chfd225/lesson3/index.html
Huyser, K., Medeiros, J., & Sanchez, G. (n.d.). The Great Recession: Implications for Minority and Immigrant Communities. Retrieved from https://web.stanford.edu/group/recessiontrends-dev/cgi-bin/web/resources/research-project/great-recession-implications-minority-and-immigrant-communities
Mistry, R. S., & Wadsworth, M. E. (2011) Family Functioning and Child Development in the Context of Poverty. Prevention Researcher, 18(4), 11-15. Retrieved from http://web.b.ebscohost.com.ezproxy1.apus.edu/ehost/pdfviewer/pdfviewer?vid=1&sid=5d5a1535-4c8d-41be-b540-64b91db76037%40pdc-v-sessmgr06
The Effect of the Economic Crisis on American Households. (n.d.). Retrieved February 19, 2020, from https://www.nber.org/aginghealth/2010no3/w16407.html
Minimum 150 words answer to each