Overproduction in America became a big problem due to technological and industrial advancements which left producers with too much supply, and not enough demand from consumers. Due to advancements in technology, production was at an all one high in America. Farmers were able to use new techniques, but began producing product too fast for it to be purchased. This overproduction left producers with too much product and a need to offload, so prices were driven down. As prices were driven down to the lowest point to create sales, this caused problems for the economy.
US industries were producing more goods then it could sell, this is bad because if the people are not buying goods it becomes useless and people needed to but them so that the economy grows but instead people didn’t buy because they had them already, therefore it was wasteful as no one wanted to buy, so it decreased the wealth of the economy. The most important reasons why the Wall Street crash happened were; the speculation ‘on the margin’, this was important because buying shares with a banks money and not being able to repay
The Conservative Government left the Labour Government with large debts to the IMF and an increase in inflation in the economy. Although the Labour Government did not help this problem as they approached the IMF for another loan and its increase in debt meant that they had to decrease wages and increase prices, which then caused problems with the workers of the country. Due to a decrease in wages, many workers were unhappy and inflation led them to blame the government’s lack of control of the country’s finances for the financial problems that everybody faced. As inflation was rising, unemployment was increasing as in the four years of the Labour Government, unemployment rose by half as ‘key industries continued to shrink’. However, the government blamed the financial problems on the workers and especially the unions as strikes caused workforce to stop and the government went to the IMF, this however does not include Wilsons decision to devalue the pound as this was damaging on the economy because people were getting loess for their money and it disheartened a lot of the population.
Among both sources, the conditions under which people lived during the Great Depression can be described as “the end of an era for those who had come to believe in ‘money for nothing’” (Harman 469) and “so long-lasting, so severe, and so global that it has become known as the Great Depression” (Bentley-Ziegler 985). It’s true that the world was in turmoil. People of all ages and of all social classes were panicking, some believing the times impossible to bear. For some, this was true. The Stock Market Crash, which coincided with the Great Depression, allowed for further suffering, especially great financial toil.
The collapse of stock market happened because it had a weak foundation. In fact, it was dependent on borrowed money; banks would lend money to the population to buy shares in the market without making sure the borrowers were able to pay back. Moreover, facing the crisis over nine thousand banks were obliged to close, for they invested their client's savings in the stock market. Going through rough time financially, Americans are drastically forced to reduce their spending which lowered the amount of production; therefore, employers slashed the numbers of employees that caused the unemployment rate to rose from 4.2 in 1928 to 8.7 in 1930 and to 23.6 in 1932. In the middle of the crisis, several social classes experienced a harsh time.
DISCUSSION: ❖ When companies outsource they nearly always save money, and are able if they want to reduce the prices of their products or keep them much lower than the competition. This hurts the small companies that can't outsource. ❖ Sometimes, it destroys the job of the local people here. Because it always costs less while outsourcing than hiring someone in US locally. Outsourcing has created extra 7% unemployment and the government has to pay unemployment benefits to them every month.
“The Great Depression was the most important reason for the outbreak of WWII”. First of all, to what caused the Great Depression was a number of things. In 1929 the stock market crashed completely. As a result of this thousands of people lost their jobs and became unemployed. Even more so, people became homeless and started begging on the streets.
Some parents were poor and thus not able to provide enough food for their children. This forced many children to move to the factories and mines so that they can be employed to earn some income. This increased child labor in the effort of getting money for the family. Many laborers preferred employing children rather than the adults because they could pay children less amounts than the adults even though the amount of work done may be equal. Children were therefore exploited by the employers by being paid low wages in comparison to the work done.
At the same time the number of similar educated Americans who were unemployed reached 1 million, and another 1.5 million dropped out the work force. (Krikorian 140). These statistics are alarming, and so is the fact that the Mexico government is not doing much to help out its own people. Mexico is not taking responsibility for its emigrants in the U.S. People are leaving because they cannot support themselves or their families on the small wages that they work for. A mis perception of Mexico is that it is poor and somewhat of a third world country.
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.