The collapse of the housing market and unemployment caused the most damage. Between 1991 to 1992 unemployment had gone back up to 2.6 million. Negative equity meant home owner were paying mortgages far higher than their homes were worth. Many people could simply not keep up with the increased prices and resulted in them losing their homes due to the bank repossessing them. The recession hit close to home for the Tories, effecting the middle class not just the working class of the industrial north.
If the house is being over paid for then the house will be greatly losing money each month. This will steer them into debt and soon be forced to foreclose. Claudette showed this when she answered “lost equity, plummeting housing market, and job loss. People couldn’t spend like they use to and had a new worry of keeping their job through the problem. ” This shows that there are many different variables affected when this happens to your home besides it just isn’t what it used to
This was because unemployment was rising fast (Doc. E), which meant people were spending less to the point that it caused a huge shortage of income to many companies and businesses. The stock exchange was a replacement of work, where people risked their money on what they speculated would do well (Doc. F). Since the unemployment rate was high and businesses were failing, the stock market went through a dramatic crash causing many people and companies to go bankrupt.
14 February 2012 Double Taxation Hit Small Business In an economy where employers are laying off employees in unheard of numbers and the unemployment numbers are dancing around records levels a new government debacle is plaguing America’s business; and there seems to be no end in sight. Unemployment benefits and taxes are hitting businesses twice. The majority of unemployment benefits are paid by business. With the increasing number of unemployment claims most states’ benefits funds were exhausted shortly after the start of the recession. Resulting in the asking for Federal funds to help cover benefit payments; because of this many states are having trouble in repaying the interest owed to the Federal government.
Many workers lost hearing from loud machinery, lost limbs in hazardous equipment, and even lost their life due to the apathy of factory owners. The pay for such jobs remained meager despite these risky conditions. The average blue collar employee received $3.50 an hour, barely enough to get by in society. To make matters worse, workers were forced to work long hours during the week, usually over ten hours a day for six to seven days a week. With such appalling conditions, industrial workers were forced into action.
The reasons this occurs is due to numerous factors like the number of companies going out of business, lack of job growth, future plans for job growth does not meet the need, founding father’s not allowing large business to come to town, education level of community, sales tax is high, and average household income is low. Another reason for the high unemployment rates in Mohave County is that there are some very rural areas and job availability is low. Some people actually make more living off the unemployment benefits then they would get paid at a minimum wage job. “Unemployment benefits range from $60 to $240 per week depending on a person’s previous income” (Pelham, 2011). “The average job growth is 1.46% lower than the Nation’s average.
The largest cause was the crash of the stock market as well as “panics” by the banks. Some economists had their own beliefs about why the country had such economic troubles. Some believed that overproduction was a major factor meaning consumers did not want to consume all that was being produced. Factories would produce excess amounts of goods and it would just sit around because people in the society were not spending money. The people who were spending money were the poor more often than the rich; the poor were getting poorer and the rich were essentially becoming richer because even though there was no money to make, they were not spending.
Citizens were treated differently than the ones in the West. East Germany was always facing repressions so the biggest problem was requiring all workers to work more. If they did not follow this new law then their income dropped by one-third of their original paycheck. This already showed how unfair the life was becoming in the East. Many of the workers became angry and started protesting against the government.
English 043 Professor Doreen Kiefer 12/15/13 “The Growing Need of Raising Minimum Wage” Have you ever wonder how many desperate unemployed American citizens there are in the United States seeking for jobs? Well there’re more than eleven million unemployed citizens desperately trying to make a living in this terrible recession. Not only is it affecting our economy but our businesses, and families as well. Even before the recession, our economy was rapidly shifting, with fewer and fewer middle class jobs and opportunities, with fewer and fewer middle class families, which has led to a low growing, low-wage workforce. As of the end of 2011, the United States needed to create roughly 10 million jobs to return to the pre-recession unemployment
On Black Thursday, The Wall Street Crash of 1929, October 24 also known as the Great Crash was terrible, it was the worse stock market crash ever. The market crash was one of the major causes that led to the Great Depression. There was a huge crowd of people trying to withdrew there life saving but couldn't. They were left with loans and debt they couldn’t pay. Two Months after the crash , stockholders had lost more than $40 billion dollars.