Rich people already had the goods, and the poor couldn’t afford them, meaning the market suffered. As a result of this factories made cuts in staff and output, thus leading to even greater falls in the market as people had less to spend. Also the wealth in the country was very unevenly distributed. As mentioned previously, around 50% of the population were on or below the poverty line of $2000 a year. The worst affected groups were farmers, farm labourers, workers in old industries, Black Americans and new immigrants.
Unemployment in the Great Depression The unemployment in the Depression was very scary. The Depression started with the market crash of 1929. There were mostly men lost their jobs across Canada. Many of the men who had families needed money. If the men didn쥁 have any money, they couldn쥁 feed their families.
The new German Republic faced a large number of political, economic and physical problems at the end of World War I. Having lost World War I they had taken a huge beating, taking huge numbers of casualties and their leader, Kaiser Wilhelm, being forced to abdicate. However I believe that the most serious problem they were facing was bankruptcy due to their ruined economy. Before the war, Germany had been very industrial and powerful, having the third most powerful economy in the world, behind Britain and USA. However after the war their economy had been ruined and there was very little money in he system, leaving them almost as a third world country.
This was a terrible time for many Canadians, as many men and woman had lost their jobs. [4] The stock market crash happened because too many people were investing in stocks, hoping to make easy money, but backfired on Canadians. More people we’re losing their jobs, and the economy would be falling more and more. By the 30’s, technology had not been as advanced as it is today and because of the advanced technology, more job opportunities are offered to many people thus with the many job opportunities. Canadians will not have to rely on stock market as they did in
As prices were driven down to the lowest point to create sales, this caused problems for the economy. It was extremely low. If they couldn’t create sales, they were forced to shut down close business. Factories closed and workers were laid off, meaning no money was coming into workers or big businesses. Unemployment percentages were at an extreme high and this failure to regulate money throughout the economy drove down the economy.
Case Analysis 3 The impact of the Great Recession on Workplace Stress Saint Leo University Dr. Webster Baker MBA 530 – Organizational Behavior Overview The greatest downturns of the economy collapsed many industries in the period of the great recession. People found themselves with lack of job security, expensive educational system, and undervalued house price (Nelson & Quick, 2013, p.270). This negative behavior of the economy leads businesses to be tough in such cases. Furthermore, companies reducing costs strategy affected on the employees mind negatively (Nelson & Quick, 2013, p.270). The emerging effect of the high recession caused people’s stress level much higher.
WHY DID THE WALL STREET CRASH HAPPEN IN 1929? The Wall Street crash which happened on 29 October 1929 was one of the most depressing events in the history of America. This happened because people lost their wages b 60%, 14 million people were unemployed by 1933, banks went bust and also US trade slipped from $10 billion to $3 billion. The Wall Street crash happened due to some reasons: one reason was, the Americans were buying consumer goods on credit, especially cars and houses they did this because, they didn’t have enough money, and therefore if they get the money they will be able to pay. Another reason was that speculation was rife, because people believed the stock market was easy so 20 million Americans invested but only 1.5 million people had serious knowledge of the market.
In 1929, the USA had suffered from a Great Depression. People lost their money, businesses went bankrupt leading to a soar in unemployment numbers and homes were lost resulting in the rapid increase in slums. After the First World War, Germany begun to borrow money from the USA to help their country recover. Due to the Depression having a big effect on the USA's economy, Germany was no longer supplied with the money they needed to recover. In 1933, Hitler became Chancellor of Germany.
This means that when the credit crunch struck banks were forced to reduce the amount of money they lend to people. This was due to a huge amount of “bad debts”. In other words people started to borrow too much and couldn’t repay it back. Anup Shah, from the Global Issues website says: “The global financial crisis, brewing for a while, really started to show its effects in the middle of 2007 and into 2008. Around the world stock markets have fallen, large financial institutions have collapsed or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems.
Without TARP, GM company will out of business, many people will lost their job, then many families will loss income for daily expenses; the company like auto part supplier who depend on GM in business also will go bankruptcy; this will bring a big implication to economic. Besides that, GM pays a high pension pay for their worker for the use when they retire, if company do not ask the bailout from government, the company will bankrupt. This will led to the pension money for pensioner cut down. After the bailout from President Obama, GM had hired more workers, the sales of vehicle also increased and US economy also shown growth. All these reasons show that GM bailout should be done to ensure the economy would not turndown.