An Analysis of the Economic Scars of the Great Recession in the United States Through the Lens of Confidence

Abstract

The Great Recession, which started in 2007, was considered one of the severest economic downturns that ever transpired, causing massive unemployment and panic. Intriguingly, economic growth remained significantly lower than the pre-recession level in the US. This article intends to research the relationship between confidence and US economic growth. Through this study, the author intends to use the qualitative research method to analyze existing data and explore the factors that deteriorated the confidence of the Americans and how these factors continued to influence the economic growth of America in the phase of recovery. The result is, in short, the collapse of the financial market, soaring unemployment, and the accumulation of debts, which spread anxiety in the US economy, made individuals lose their confidence over a long period, and caused a sluggish economic recovery years after the end of this recession.