Known also as Black Tuesday, October 29th left stockholders shattered with recorded losses reaching $40 billion dollars (Kelly, n.d.). Many banks and financial institutions began collapsing which led to irretrievable, uninsured deposits and savings. Fearing further loss, people began spending less which led to a decrease in production and an increase in unemployment. As companies began to fail, the government devised the Smoot-Hawley Tariff in order to protect American businesses. The Tariff placed high taxes on imports leading to a decline in international trade.
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.
Kingsford had also reduced their media presences since 1996 (because of a decrease in media spending), a direct from the text by Warren explains " The charcoal category was now paying the price for the several years of reduced advertising". Pointing out that it was not only their reduction of advertising but the absence of advertising from its competitors as well which is what was helping gas grill become more popular. Lastly the looked at weather being a contributing factor. There was more precipitation and colder weather then the previous year that lead to a reduction of to barbecuing. Optimal weather was important for barbecuing, so it made sense that with worse weather the number would decrease.
Unemployment, which was not a major issue in 1929, dramatically soared by September 1930 1. Even those who could find work felt the effects of the crisis, as the drop in demand for labor led to an overall decrease in wages. After some years of hope, German people were again threatened by the harsh reality of misery and poverty. 1 In one year the unemployment boosted from 1.25 million to 4 million people. On the other hand, the anguished effects of WWI were still enduring in the Germanic collective memory.
Revenue fell 4 per cent to $7.9 billion. Qantas' domestic operations reported a 74 per cent fall in pre-tax profit to $57 million, which was blamed on intense competition in the domestic market and growth in capacity. But it was overshadowed again by Qantas' international operations, which slumped to a $262 million loss compared with a $91 million loss previously. This article refers to Qantas cutting down jobs for many workers. This is an internal issue- business management; this affects the business in a negative way.
Recent indicators display worsening conditions as mid January new unemployment claims have increased. The economy has continued to decline based on the unemployment rate, heavy equity losses in housing, and the continued difficulty in obtaining credit. Manufacturing output declines of the last few months of 2008 fell even more in January to the lowest since World War II. The exports had eased the demand decline domestically during mid 2008 but that market also experienced a decline by the end months. The reduction of energy prices mid 2008 is being credited for the overall inflation price slowing.
And su ragists, after decades of political activism, succeeded in getting approval of a constitutional amendment in 1920 that gave women the right to vote. The good times did not last. The value of many stocks, which had become arti cially in ated, fell dramatically in October 1929. Over the next three years, the business recession in America became part of a worldwide economic depression. Businesses and factories shut down, banks failed, farm income dropped.
According to the U.S. Census Bureau, median household income in the United States dropped 2.3% in 2010 after accounting for inflation. Overall, median household income in the United States has declined by a total of 6.8% once you account for inflation since December 2007. Should we be excited that our incomes are going down and that a record number of Americans slipped into poverty last year? Should we be thrilled that the economic pie is shrinking and that our debt levels are exploding? All of those that claimed that the U.S. economy was recovering and that everything were going to be just fine having some explaining to do.
In the article “No Babies?” by Russell Shorto, he discusses how the population in Europe is declining drastically. He discusses how the birthrate has dropped drastically from 6.0 to 2.9 today. He discusses how the birth to death rate is very unbalanced as well, which is a result of the declining population. He takes in to consideration how the European population worldwide will decrease from 12.5% to only 5%. He discusses how it is feared that the European culture will be lost due to the fact that the majority of the European population is mainly made up of older generations and few younger.
The number of products imported from other counties has increased over the years and exports have seriously decreased. So, it seems that the United States finds itself in a very similar situation as in the Great Depression of the 1930s. The government didn't learn from their mistakes made back then therefore the economic situation has returned. Instead they find themselves with an economy overloaded with product, financial inflation and deflation which has lead to serious workers unemployment. Therefore, as I stated before The Great Depression came about because of three main causes, in my opinion these three causes were not properly dealt with which has people believing that the United States has fallen into another depression similar to the one in the 1930s.