2018 Global Financial Crisis: Causes And Effects Essay Example For College

Deregulation in the financial sector was the primary driver of the 2008 financial crisis because it gave banks the power to fund trading activities with derivatives. As a result, banks raised their mortgages to cushion the derivatives sales, which brought more profit (Bernanke 251). Similarly, the move encouraged more borrowing by subprime customers because the loans were interested only. In 2007, housing prices began to fall due to the balance between demand and supply failure. This sudden increase in mortgage prices trapped homeowners who failed to service the loans and could not sell their houses (Lane and Milesi-Ferretti 189). Due to the crumbling of the housing prices, the banks delisted each other and stopped lending money which created the financial crisis and later the massive recession.


The financial modernization Act of 1999 repealed the Glass-Steagall Act of 1993, allowing banks to utilize their stock and deposits to invest in profitable derivatives. Bank activists requested a change regarding the financial Modernization Act to compete with foreign firms who had the freedom to trade (Bernanke 340). In return, the lobbyist promised to invest in low-risk securities which would not affect the clients. On the contrary, following the repeal and freedom to trade, big banks became sophisticated with derivatives because they wanted to make more money (Lane and Milesi-Ferretti 220). Big banks bought small banks, which made them grow into a too big monopoly to fail.

Increase of rates to subprime borrowers

At the beginning of the financial decline, the federal government resorted to raising rates on subprime borrowers and lowering their fund rates. In addition, lowering the fund rates reduced the interest rates on adjustable-rate mortgages, making the interest rates cheaper on short-term treasury bills based on the federal fund rates (Zhang and Broadstock 101239). This move delighted homeowners who could not afford conventional mortgages. But, the percentages for the subprime mortgages doubled between 2001 and 2007, and the feds started raising their rates (Lane and Milesi-Ferretti 190). As a result, homeowners were hit by loans they could not afford, and the rates kept rising further.

Effects of the Financial Crisis


The financial crisis led to an increase in unemployment in many countries because it expanded the economic crisis. Some countries such as Germany experienced a steady decrease in unemployment rates because they countered the financial crisis with instant solutions. On the other hand, south European countries experienced more employment crises where unemployed youth rose dramatically (Zhang and Broadstock 101239). Similarly, Baltic and Anglo-Saxon countries were the worst hit because of their constant dependence on the outside countries and high account deficits. According to the European statistics, temporary workers accounted for 44% of people who lost their jobs despite contributing to 14% of the total workforce in Europe (Bernanke 259). The crisis was more challenging on younger workers and those under contracts, as they would always fall the first victims to lose jobs.

Debt Crisis

Popular countries such as Greece, Ireland, Italy, Portugal, and Spain had extravagant fiscal irresponsibility when the economic cycle was favorable, leading to an increase in bond rates to control perceived risks in debts. The rising interest rates became unbearable, forcing the countries into foreign borrowing from IMF and the EU (Zhang and Broadstock 101239). However, the same financial institutions needed government engagement in the authentication of the programs, the liberation of the labor market, restructuring welfare, and bringing order in finances (Lane and Milesi-Ferretti 189). In addition, the countries’ accounts’ imbalances led to currency devaluation, which makes exports cheaper and imports more expensive. Thus, the crisis led to an increase in interest rates which affected the exports and imports, pushing the countries into debts.

Due to the crumbling of the housing prices, the banks blocklisted each other and stopped lending money which created the financial crisis and later the massive recession. Deregulation and increase in fund rates for subprime homeowners are the major drivers that led to the financial crisis. Freedom to trade with the float and deposits led to uncontrolled growth leading to monopolies that affect the financial markets. As a result, the problem led to a higher rate of unemployment and an increase in debts because the affected countries failed to maintain a balance of demand and supply. Thus, the crisis occurred due to irresponsible fiscal accounting and uncontrolled freedom, which led to the exploitation of the poor economies by bigger banks.

Works Cited

Bernanke, Ben S. “The Real Effects of Disrupted Credit: Evidence from The Global Financial Crisis.Brookings Papers On Economic Activity, vol. 2018, no. 2, 2018, pp. 251-342. Project Muse, Web.

Lane, Philip R., and Gain Maria Milesi-Ferretti. “The External Wealth of Nations Revisited: International Financial Integration in The Aftermath of the Global Financial Crisis.” IMF Economic Review, vol. 66, no. 1, 2018, pp. 189-222. Springer Science and Business Media LLC, Web.

Zhang, Dayong, and David C. Broadstock. “Global Financial Crisis and Rising Connectedness in The International Commodity Markets.” International Review of Financial Analysis, vol. 68, 2020, p. 101239. Elsevier BV, Web.

FindDreamJob Ltd.’s Advice To College Students

FindDreamJob Ltd. offers advice to college students who are considering their career options. Therefore, as a company representative, I would like to discuss the career outlook of Information Clerks based on the U.S. Bureau of Labor Statistics and provide my findings and recommendations. The employment prospects are promising because overall employment of information clerks is expected to expand by 2% from 2020 to 2030, with around 156,800 opportunities for information clerks forecast each year on average during the decade despite low employment growth (U.S. Bureau of Labor Statistics). Much of the planned job increase for hotel, motel, and resort desk clerks and reservation and transportation ticket agents began in 2020 and is forecasted to last until the end of the decade. Nonetheless, increased usage of online purchasing and reservation systems, as well as self-service ticketing machines, will reduce employment demand.

Essentially, in 2020, there were over 1.3 million job openings for information clerks. Hotel, motel, and resort desk clerks are the most common employment, with 221,000 persons working in this field, followed by interviewers (excluding eligibility and loan) and judicial, municipal, and license clerks. Information clerks do typical clerical activities such as record keeping, data collection, and customer service. The typical jobs include correspondence, court, file, hotel, motel, resort desk clerks, eligibility interviewers, and human resource assistants. Although most of these professions need only high school education, human resources assistants often require an associate’s degree. Courses in word processing and spreadsheet software are very useful, regardless of whether students seek a degree.

Essentially, information clerks have advancement opportunities as they may be promoted to more responsible administrative jobs, such as secretaries and administrative assistants. After earning a bachelor’s degree, some human resources assistants may advance to human resources experts. U.S. Bureau of Labor Statistics offers vital data on the salary range of information clerks. For instance, in May 2020, the median annual pay for information clerks was $36,920. The lowest 10% made less than $23,270, while the wealthiest 10% received more than $60,590. The majority of information clerks work full-time. On the other hand, part-time work is prevalent for hotel clerks and file clerks. Clerks who work at 24-hour hotels and transportation facilities may be required to work evenings, weekends, and holidays.

The career advantage is that most information clerks just need a high school diploma and develop their abilities on the job. Hence, information clerks are used in practically every business. The work of information clerks who provide customer service may be stressful, especially when dealing with unsatisfied clients, which is one of the career disadvantages. Moreover, reservation and transportation ticket agents at airports or shipping counters handle and move big bags or shipments weighing up to 100 pounds. Notably, reservation and transportation ticket agents, as well as travel clerks, have among the highest rates of accidents and illnesses among information clerks.

Typically, information clerks generate routine reports, claims, invoices, or orders, as well as gather and record data from customers, staff, and the general public. The responsibilities also include answering queries from consumers and the general public regarding products or services, as well as filing and preserving paper or electronic data. In a nutshell, information clerks do ordinary clerical activities in a company, organization, or government. Phones, computers, and other office equipment such as scanners and shredders are used.

My primary recommendation is to emphasize the significance of training. Most information clerks undergo on-the-job training that lasts a few weeks. Government employees get training that might take many months and involves learning about government programs and laws. It is critical to strengthen communication and ethics abilities. Customers and the general public must be able to understand information clerks’ policies and practices. Thus, information clerks, particularly human resources assistants, have access to sensitive data. Hence, they must be trusted to follow the privacy and security standards that regulate the disclosure of this data.

Work Cited

U.S. Bureau of Labor Statistics. Occupational Outlook Handbook: Information Clerks, BLS, 2021, Web.

Needs And Motivations From Maslow’s And The Scripture’s Perspectives


Humans crave various things in life, so numerous attempts at studying the nature of needs have been made. Particularly, Maslow’s Hierarchy of Needs remains the most inclusive yet structured approach. For this reason, many researchers put the classification into practice to study motifs that determine those needs. In this regard, biological urges and social interactions are addressed first as the primal stimuli for humans’ desires. Therefore needs and motivations coincide.

Distinctions between Want, Need, and Motivation

A flourishing life depends on the fulfillment of specific needs. Addressing Maslow’s Hierarchy of Needs, Cutts divides these needs into two categories: biological drives to ensure survival and social aspirations to access self-actualization (2019). Yet, he distinguishes between “wants” and “needs,” rightfully stating that sometimes we reject things we need and crave things that are unnecessary at the moment. Cutts emphasizes humans should determine their needs and possess enough motivation to fulfill them (2019). He supports Maslow’s ideas on the hierarchical structure, with biological urges being the most potent and self-expressing desires becoming an ultimate goal to achieve.

Physiological and Safety Needs

The level in question comprises all biological urges and responses. Maslow states that vital needs cannot be perceived as purely homeostatic (2019); contrariwise, Skinner rejects this idea. He has researched the free will of individuals in line with his behavioral studies and has concluded that people function in a predetermined way. Various stimuli define our physiological needs as well as personal aspirations. Yet, Skinner develops a theory of reinforced behavior, stating that humans are not in control of their actions, conscious or otherwise, and their behavior falls in line with whatever (e.g., society) or whoever (another person) reinforces the power on them (2021). Behaviorism coincides with a religious point of view, as the divine can take on a role of reinforcement.

Safety needs constitute the next level and are less potent than physiological drives. Maslow suggests that they are less upfront and harder to separate (2019). In his judgment, they derive from our need to seek protection and guidance. God is viewed as an ultimate protector who brings desired safety in religion: “God is our refuge and strength, an ever-present help in trouble” ((King James Bible 1769/2017). Thus, safety needs constitute not self-reliance but a desire to acquire support from others.

Belongingness and Love Needs

Religion alternates Maslow’s hierarchy of needs, as it brings other social aspects to light. The primal need is meant to bring peace and tranquility: “I know what it is to be in need, and I know what it is to have plenty… I can do everything through Him who gives me strength.” (King James Bible 1769/2017). The Scripture advises a human to trust God to fulfill the needs, thus stating that the divine’s sense of belonging and bond is at the top of a hierarchical structure.

The sense of belonging is a driving force of social interactions. Over emphasizes that the desire to belong satisfies two conditions: the need to engage in a positive cooperation and complex cooperation where they can share their psychological state with others and receive needed appreciation (2016). These arguments prove that belonging is one of the essential senses for a flourishing life.

Self-esteem and Self-actualization. The highest level of humans’ priorities comprises their aspirations dedicated to thriving as an individual. Maslow describes self-actualization as self-fulfillment and freedom of self-expression (2019). The sense in question is put on the highest level, as only after an individual has gained recognition in society can they be accepted as its unique part. Subsequently, this level is the most difficult to achieve as it reflects the individual’s absolute freedom.


Summarizing all the ideas above, it is clear that needs are hierarchical, and various motivations determine their fulfillment. Our biological urges and social engagement are primal reasoning. From a religious point of view, the bond with the divine is more potent than human interaction, so the grace of God becomes the ultimate motivation. Yet, it cannot be overlooked that in modern society, the desire for personal freedom and the need for self-expression overrules the rest of the stimuli.


Cutts, J. (2019). Herbert Marcuse and “False Needs”. Social Theory and Practice, 45(3), 353-370.

Feist G., Feist, J., Roberts T. (2021). Theories of Personality. McGraw Hill.

King James Bible. (2017). King James Bible Online.

Maslow A., (2019). A Theory of Human Motivation. India: General Press.

Over, H. (2016). The origins of belonging: Social motivation in infants and young children. Philosophical Transactions: Biological Sciences, 371(1686), 1-8.