1. The Effects of the Financial Crisis on American HouseholdsBy
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Qatar University

2. Overview Introduction
First Effect: The cut back on household expenditure
Second Effect: Reduction of wealth
Third Effect: postponement of retirement
Conclusion
References

3. Introduction What is a financial crisis?
American financial crisis: Some background information
Impacts of the financial crisis

4. First Effect Reducing Household Spending
Reduced wages due to bankruptcy
Emplyers paying lower than the minimum wage (Öner, 2012)
Impact on families’ lifestyle
Unemployment
More than 8.7 million reduction in labor force (Atkinson, Luttrell & Rosenblum, 2013)
Resorting to savings
Selling property

5. Second Effect Reduction of Wealth
Failing to pay back bank loans
Selling properties
decline in the real estate prices (Nayak, 2013)
Unemployment
More than 8.7 million reduction in labor force (Atkinson, Luttrell & Rosenblum, 2013)
Resorting to savings
Selling property at lower cost
loss of shares in stock markets
50% decrease (Dwyer, 2012)

6. Third Effect Postponement of Retirement
Having to use retirement money
Support family during crisis
Need to accumulate more earnings for retirement (Whitehouse, 2009)
Impact on retirement plan

7. Conclusion During the crisis, many Americans …
were forced to reduce their spending
lost their equities and investments in the real estate and stock markets
decided to postpone their retirement
Governments might need to have a role in overseeing the financial market of their respective countries regardless of the type of economic system they have

8. References