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.
Working every day, for very little pay. That pretty much sums up what life was like for almost everyone during the devastation that plagued the entire world. The Great Depression, which was an international crisis that occurred in 1929 all the way up to the 1930’s, successfully hit the world by surprise. The Say’s Laws firmly believed that the law of supply and demand would eventually make everything better, and that government action was not needed to help get things back to the way they were. However, that was definitely not the case this time around.
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
Many of these rich industrialists helped to finance the Nazi party. Another factor which helped Hitler become Chancellor was how unhappy the German public was with the government. It was made up of so many different parties that no proper agreement could be made about how to handle the depression. Two chancellors, Müller and Brüning resigned in quick succession because they couldn't get a majority of politicians to support their ideas. By 1932, President Hindenburg had to use his special “Emergency Powers”.
Retirements cannot lengthen indefinitely without massive gains to productivity, or increases in the supply of younger workers; the math doesn't work. Eventually, living standards start to fall. The combination of the deadweight loss from taxation and the shift of workers from production to dependence makes it harder to pay for the retirement benefits--effectively, Social Security undercuts its own political sustainability. This is the real problem we face, and it's barely hinted at in the Trustees report. 2.
There are many reasons for the fall of Rome. The three main reasons are inflation, political corruption, and excessive military spending. There are many more scientific theories, but these three seem to be the most important. Towards the end of the empire, after Marcus Aurelius was emperor, the economy had difficulties with the increase of prices of everything. Since Rome was no longer conquering new lands, they weren't getting the extra money so they turned poor.
A total war requires money. This is accomplished in several ways, most of which affect every American citizen. Corporations stop making their regular products to manufacture goods needed for war. The government provided loans, but generally only the biggest corporations received them. This forced many small businesses to fail because they couldn’t compete.
Unemployment percentages were at an extreme high and this failure to regulate money throughout the economy drove down the economy. The overproduction which initially started this downwards spiral effect can be recognized as a very important cause to the start of The Great Depression in
"The managers of big business took huge risks out of greed," said President Oscar Arias of Costa Rica. Costa Ricas economy is highly dependent on American trade, so they are greatly impacted by our recession. Europe calls it “casino capitalism”, and says we need higher standards for financial regulation so the globes economy won’t be affected by America’s financial hiccups. Icelands economy depended mostly on finance, so their bank system collapsed, and as a result, the government