It would have been wrong.
Here are still starving America after ten years at mend.
1. Gains for Big Cities, Losses for Small Cities
The decline and its demand shifted the geography of prosperity in America – and workers still have not recovered.
Production work, which had fallen since the 1980s, suddenly fell between 2007 and 2009 when the factories failed. It left the cities of Michigan, Ohio and upstate New York gasping. "These places were hit harder by the recession and are slower to recover than the national average," said Dave Swenson, finance professor at Iowa State University.
"The cost of living in the core areas has just become prohibitive," Swenson said. "It has slowed some of that transition to the most urban areas."
2. State budgets atrophied
However, the state has also had to cope with rising costs, especially for Medicaid. It has made it harder to allocate funds to other priorities. Government spending on infrastructure as a share of gross domestic product is as low as it has been for 50 years, Pew found, and government authorities have 132,300 fewer non-educated employees than they did in 2008.
3. The Mixed Blessing of Low Interest
But just like taking painkillers for a long time, there can be some side effects, Fed's monetary policy measures gave rise to some unintended consequences. For example, low bond yields led the large funds that controlled trillions in investments to put their money into private equity and hedge funds that paid high interest rates. As a result, first public offerings, which allow a wider group of people to benefit from the creation of new businesses, almost dried up.
For pensioners expecting fixed income securities as government bonds, low interest rates may also mean a lower standard of living.
"Low interest rates, while having many benefits, also have many costs for society," said Kevin Kliesen, economist at the Federal Reserve Bank of St. Louis.
And it's just short-term rates that the Fed directly controls. The long-term interest rates were in decline before the financial crisis, and the subsequent recession depressed them even further. Fed officials are now struggling to link inflation to the 2% target.
"When interest rates go down, they favor disproportionate market leaders as opposed to market successors," said Atif Mian, CFO at Princeton University, who co-authored the study. The effect he found "is big enough at low interest rates so as not to have any expansive effect on the economy anymore."
4. A hobbled generation
In some downswing, the worst hit group is the one who just begins.
5. The Shadow of Fear
But sustained the economic effects of the recession may be, the psychological effects fade even slower. Sallie Krawcheck: Wall Street Lack of Diversity contributed to the financial crisis "class =" media__image "src =" http://cdn.cnn.com/cnnnext/dam/assets/190620150435-diversity-wall-street-file-large-169. jpg "/>