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| In their 2010 report, the Economic Advisors to the President referred the recent economic downturn as the '''[[Great Recession]]''', suggesting a parallel with the Great Depression of the 1930s. Like the Great Depression - and unlike other recessions - it had a simultaneous impact on most of the world's economies. But in other respects it was unique. There had been no precedent for such extensive damage to the world's financial system, nor for the coordinated measures that were taken to avert what was feared to be its imminent collapse.
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| Although, according to the generally accepted definition of the term, the recession ended in most countries when economic growth resumed during 2009, its damaging effects upon the major economies are expected to persist beyond 2011, and its ultimate cost may amount to as much as a whole year's ouput of every country in the world.
| | ==Footnotes== |
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| The Great Recession has prompted a re-examination of beliefs concerning the functioning of markets comparable to that which followed the Great Depression.
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| =====Introduction===== | |
| Explanations of the causes of the recession and accounts of contemporary debates concerning policy responses are available in the articles on the subprime mortgage crisis, the crash of 2008 and the recession of 2009, together with timelines linked to contemporary reports.
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| =====Overview=====
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| During the 1980s there was a widespread re-appraisal of the regulations that had been introduced in response to the financial instability that developed during the Great Depression. A consensus had already emerged that many regulations were economically harmful, as a result of which programmes of deregulation had been adopted. The reappraisal concluded that the financial regulations of the 1930s had become unnecessary because recently-developed monetary policy could be used to counter any further signs of instability. Ongoing programmes of banking deregulation that had prevented investment banks from engaging in branch banking, insurance or mortgage lending were dropped, and reserve requirements were relaxed or removed.
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| After the mid-1980s came a twenty-year period that has been termed the great moderation, during which recessions had been less frequent and less severe than in previous periods, and during which there been a great deal of successful financial innovation.
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| In the United States, that period was characterised by massive capital inflows and the large-scale availability of credit to households, and by 2007 personal savings rates dropped to 2 per cent of disposable income from their previous average of 9 per cent and there was a house price boom that has since been categorised as a bubble.
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| The bursting of that bubble in 2007, and the downgrading by the credit rating agencies of large numbers of internationally-held financial assets created what came to be known as the subprime mortgage crisis, which led, in turn, to the financial crash of 2008 and the failure of several of the world's largest banks. The loss of investors' confidence caused by failure of the ''Lehman Brothers'' investment bank in September 2008, resulted in a credit crunch. The resulting fall in spending struck the major economies at a time when they were already suffering from the impact of a supply shock in which a surge in commodity prices was causing households to reduce their spending. Economic forecasters had been expecting a mild downturn: what actually happened was the global slump in ecomomic activity that has come to be known as the Great Recession.
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| Although the trigger that set the recession off had been the malfunction of a part of the United States housing market, it soon emerged that a more fundamental problem had been the fact that the financial innovations that had been richly rewarding traders in the world's financial markets, had also been threatening their collective survival. The crucial nature of that threat for the stability of the world economy arose from the fact that it had become dependent upon the services of a well-functioning international financial system.
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| ''[[Great Recession|.... (read more)]]''
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| {|align="center" cellpadding="5" style="background:lightgray; width:60%; border: 1px solid #aaa; margin:10px; font-size: 92%;" | |
| | Supplements to this article include an annotated[[Great Recession/Timelines|''' chronology ''']] of the main events of the recession; and accounts of the [[Great Recession/Addendum| '''regional impact''']] of the recession.
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Latest revision as of 10:19, 11 September 2020
Categories of smart home devices shown on Amazon's website in April 2023.
The phrase smart home refers to home automation devices that have internet access. Home automation, a broader category, includes any device that can be monitored or controlled via wireless radio signals, not just those having internet access. Whether the device is powered by the electrical grid or by battery, if it uses the home Wi-Fi network and if an internet logon needs to be created to use it, then it is smart home technology.
Collectively, all the smart home devices on every home's Wi-Fi network helps to make up what is called the Internet of Things (IoT), a huge sea of sensors and control devices across the world that are capable of being accessed from afar via the internet. One of the key reasons such devices need internet access is so that the manufacturer can periodically download updated firmware to the device to keep it up-to-date. However, being available via the internet also means that such devices are, potentially, available for spying or hacking. Today, homes may contain dozens or even hundreds of such devices, and consumers may enjoy their benefits while knowing little about how they work, or even realizing that they are present.
Not all home automation is "smart"
Many remotely controllable devices do not require internet access. They may instead have physical control devices that use either RF (“Radio Frequency”) or IR (“Infrared”) beams, two different kinds of energy used in remote controls to communicate commands. Non-"smart" home automation may also present security risks, because the control signals can be hijacked by bad actors with the right signaling equipment. Garage door openers are of particular note in this regard. Modern automobiles, in fact, are full of automation similar to home automation, and cars are hackable by bad actors in a number of ways. See Wikipedia's Automotive hacking article for more information.
Incompatibility hassles
At present, consumers must make sure that the smart device they wish to use is specified to be compatible whichever phone/tablet operating system they use (Apple vs. Android). Since smart home products emerged in the absence of any standard, a morass of competing methods for networking, control and monitoring now exist. For some products, consumers may need to buy an expensive hub, or bridge, a device that is specific to one vendor. Products made by different manufacturers but performing the same function are typically not interoperable. Consumers often need to open a different app on their smartphone or tablet in order to control devices by each manufacturer. This may make it too expensive and awkward to try out competing devices, leaving consumers stuck with the product they bought originally or else having to add yet more apps to their phones.
Security concerns
Security for smart home products has been uneven and sometimes seriously inadequate. Smart thermostats which can monitor whether a home's occupants are present or not, entry-way locks, robotic vacuums that work with a map of the house, and other smart home devices can present very real dangers if hackers can access their data.
Matter, an emerging standard
Matter is emerging standard in 2023 intended to increase security, reliability and inter-operability of smart-home devices. About ten years ago, industry consortiums formed to work on standards for smart home device communications, and their underlying wireless communications, which would make it possible for products from all vendors to work together seamlessly and provide fast performance, privacy, and security and would work even if there is not connection to the outside internet (i.e., no connection to "the cloud" or to servers).
