Influence marine insurance on an economy?
Influence marine insurance on an economy?
What influence did Hitler have on the economy of Germany?
Hitler by 1936 made the depression a bad memory in Germany revitalizing the economy while Roosevelt’s fresh deal had Americans still standing in soup kitchen lines
What is the influence of privatization on indian economy?
FI investment is a part of FDI. Foreign Institutional Investors are the instrument of FDI which specifically invests in finance sector of the economy..
FI investment is a part of FDI. Foreign Institutional Investors are the instrument of FDI which specifically invests in finance sector of the economy.
Influence of globlisation on economy?
Positive influence. 1) Flow of goods & ServicesTwo) Capital flow (Financial capital flow, Foreign ownership of Biz & Foreign Direct Investment benefits economy e.g. aid technological transfer, expose to best management practices etc) Trio) human Flow. E.g. enlargened supply of workers, price of labor fall. Avaliability of very skilled workers etc.
How did Christopher Columbus influence the economy?
The bad part of the North Americaâs discovery was mistreatment to the Indians. When Europeans came over to colonize North America, they brought diseases with them. Some of these diseases were yellow fever, malaria, measles, petite pox, pneumonia, and whooping cough. European explorers and colonists who came to America had a natural immunity to these diseases, but the Indians did not diseases turned to pandemics for them. When Columbus captured some Indians to bring back to Spain, people spotted that they could this too, and captured the Indians to sell and use them as victims. Farmers used the land in North America to plant ample fields of crops. Indian subs worked the crops for the farmers. Others who captured them sold the to other countries..
Columbusâs influence was also good. He spread culture and goods. Europeans and others brought crops to America that provided tradable material such as cotton, sugar, and rubber. They planted lots of these crops and sold or traded the goods they gave off. In addition to bringing things there, they also spread things in North America to other place. Corn, cayenne, cocoa beans, peanuts, potatoes, and tomatoes were only found in North America, and got spread elsewhere through trade. The wealth obtained by trading the goods the plants gave provided the countries who traded them off an edge against others in later times. The countries Portugal, Russia, England, France, and Spain all benefited to the crops and earned lots of money through them. With all the crops to provide fresh food, the cooking style switched in parts of the world. Cocoa beans made chocolate, tomatoes made spaghetti sauce, and others switched. Economy switched because of
What is the influence of search engines on the economy?
Search engines have gone someway towards removing supplier / producer monopolies in commerce, resulting in enlargened competition and better deals for consumers. However, enhanced skill of how search engines work by businesses and a readiness to invest in web technologies is beginning reduce the egalitarian nature of the web and it is getting firmer and tighter for competition to break into the lucrative areas. Adverting on the web is the fastest growing marketing sector and presently stands at around 14.3% of total ad spend.
How did the invention of paper influence the economy?
The quality of paper was better and it was more suitable for brush painting and writing. When Cai Lun also (Ts’ai Lun) invented paper, people could write down trades, and traded paper for goods or money, keeping records of his/her business. Thus it enhanced China’s economy. They also used paper for advertisements for their stores to bring in more customers and money, and there were more buying and selling of books because of the better paper quality. The means of communication through was cheaper printed materials and lighter to produce
Population influence on economy?
POPULATION AND ITS Influence ON ECONOMYfrom 1950 to 2000 the population grows dramatically about 27 crores of population had enhanced this causes serious problems in economy . India’s present day about4th person is leading in poor because of dramatic population. this causes economic decline and becomes a serious issue and India’s economic rate such as (food ,clothing ,shelter,) is needed and is enlargening dramatically so as citizen of India you should to create awareness among Indians that about influence on economy so as decrease the popultionand increase the economy
How has the telephone made an influence on economy?
The telephone has made aheftyinfluence on the economy. As an invention usally does, the telephone. Some of these include: .
OperatorsAfterAlexander Gram Bellmade the very first telephone many people found that they could get money off ofmaking cheaper phones and selling them at high prices . As you can tell companies are still doing this with modern daycellphones.
What the influence of the economy in a business?
The economy directly affects business. When consumers have buyingpower, businesses will see more revenue. When the economy isdepressed, businesses will see less revenue.
What is the influence of inflation in Indian economy?
Inflation is caused due to several economic factors: .
When the government of a country print money in excess, prices increase to keep up with the increase in currency, leading to inflation. .
Increase in production and labor costs, have a direct influence on the price of the final product, resulting in inflation. .
When countries borrow money, they have to cope with the interest cargo. This interest cargo results in inflation. .
High taxes on consumer products, can also lead to inflation. .
Requests pull inflation, wherein the economy requests more goods and services than what is produced. .
Cost thrust inflation or supply shock inflation, wherein non availability of a commodity would lead to increase in prices. ProblemsThe problems due to inflation would be: .
When the balance inbetween supply and request goes out of control, consumers could switch their buying habits, forcing manufacturers to cut down production. .
The mortgage crisis of 2007 in USA could best illustrate the ill effects of inflation. Housing prices increases substantially from 2002 onwards, resulting in a dramatic decrease in request. .
Inflation can create major problems in the economy. Price increase can worsen the poverty affecting low income household, .
Inflation creates economic uncertainty and is a dampener to the investment climate slowing growth and ultimately it reduce savings and thereby consumption. .
The producers would not be able to control the cost of raw material and labor and hence the price of the final product. This could result in less profit or in some extreme case no profit, forcing them out of business. .
Manufacturers would not have an incentive to invest in fresh equipment and fresh technology. .
Uncertainty would force people to withdraw money from the bank and convert it into product with long lasting value like gold, artifacts. Inflation in India EconomyIndia after independence has had a more stable record with respect to inflation than most other developing countries. Since 1950, the inflation in Indian economy has been in single digits for most of the yearsInbetween 1950-1960The inflation on an average was at Two.00% Inbetween 1960-1970The inflation on an average was at 7.2% Inbetween 1970-1980The inflation on an average was at 8.5%. Inflation At PresentInflation in India a menace a few years ago is at a 30 year low. The inflation ended at a low of 0.61% in the week ended May 9, 2009 this after reaching a 16 year high of 12.91 % in August 2008, bringing in a breathe of ease to policymakers.
What is inflation and its influence on Indian economy?
Inflation affects both the economy of a country and its social conditions, as well as the political and moral lives of its inhabitants. However, the economic effects of Inflation are stated and described below: .
Price inflation has immense effect on the Time Value of Money (TVM). This acts as a principal component of the rates of interest, which forms the basis of all TVM calculations. The real or estimated switches occurring in the rates of inflation lead to switches in the rates of interest as well. .
Inflation exerts influence on the treasury of a nation as well. In United States of America, Treasury Inflation-protected Securities (TIPS) ensures safety to the American government, assuring the public that they will get back their money. However, the rates of interest charged by TIPS are less compared to the standard Treasury notes. .
The most instant effect of inflation is the decrease in the purchasing power of dollar and its depreciation. Inflation influences the investments of a country. The Inflation-protected Securities (IPSs) may act as a guard against the loss in the purchasing power of the fixed-income investments (like immovable allowances and bonds), which may occur during inflation. .
Inflation switches the allocation of income. This exerts maximum effect on the lenders than the borrowers at the time of persisting inflation, because the loans sanctioned previously are paid back later in the form of inflated dollars. .
Inflation leads to a handful of the consumers in making extensive speculation, to derive advantage of the high price levels. Since some of the purchases are high-risk investments, they result in diversion of the expenditures from regular channels, providing birth to a few structural unemployments.
How did cyclone Tracy influence the economy?
Cyclone Tracy made a thick influence on the economy of Darwin and the instantaneous surrounding region. Impacts included: .
Large loss of homes – the city had to be virtually rebuilt from scrape. There were enormous costs involved in rebuilding infrastructure and bruised buildings. .
Diminished income for businesses affected by harm resulting from the cyclone. .
Local businesses had building harm and lost some of their produce. This drove up prices of goods and supplies because they had to be brought in from further away, so the businesses had to pay more for transportation costs. .
Many residents moved away permanently, never to comeback. .
Many businesses closed down permanently, leading to unemployment. Many organisations helped with the disaster, these included: National Disasters Organisation, Darwin’s Emergency Service, RAAF, Qantas, TAA, Ansett Airways, RAF, RNZAF, US Airforce and Darwin’s Reconstruction Committee. Medical teams helped with the sick and $250 million dollars was donated to Darwin for reconstruction. Other parts of Australia donated money, food, clothing, building materials, blankets and medical supplies..
What is the influence of globalization on Malaysia economy?
The influence of globalization on Malaysia’s economy is tremendous.Now, the country makes use of cyber technology in education,business, and information technology to further upgrade its systemsand trades.
What was the influence of the embargo on the American economy?
The Embargo Act affected the on the American economy positively forthe fresh manufacturing facilities. The shipping economy was crippledand actually suffered looting due to the Act.
What influence did ww1 have on Europe’s economy?
The countries in Europe were already in debt from spending there money on the war and they had no need for the factories producing things for the war effort so many lost their jobs. The countries blamed it on Germany (treaty of Versailles) and made them pay for it all.
Influence of terrorism in Indian economy?
Terrorism can have various effects1) Tourism of an economy glides to the negative scale due to intimidation. Two) Agricultural Production of an economy is greatly affectedThree) There is a Direct Human andMilitarylossFour) Share Markets and GDP step by step are shown the way downFive) Loss of Population or manpower will decrease the working population of the nation which is a good loss.
How has technology impacted world economies?
By often decreasing required energy requirements while enhancing output, Technology has drastically switched the world economy, with the advent of a major technology sometimes sparking a entire fresh era, such as the agricultural revolution, industrial revolution, or computer revolution.
How did the Superb Depression influence on the economy?
Excellent Depression From Wikipedia, the free encyclopedia This article is about the severe worldwide economic downturn in the 1930s. For other uses, see The Superb Depression (disambiguation). Dorothea Lange’s Migrant Mother depicts destitute pea pickers in California, centering on Florence Owens Thompson, age 32, a mother of seven children, in Nipomo, California, March 1936. USA annual real GDP from 1910-60, with the years of the Good Depression (1929-1939) highlighted. Unemployment rate in the US 1910-1960, with the years of the Fine Depression (1929-1939) highlighted. The Superb Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Good Depression varied across nations, but in most countries it commenced in about 1929 and lasted until the late 1930s or early 1940s. It was the longest, most widespread, and deepest depression of the 20th century.[Two] In the 21st century, the Excellent Depression is commonly used as an example of how far the world’s economy can decline.[Two] The depression originated in the U.S., beginning with the fall in stock prices that began around September Four, 1929 and became worldwide news with the stock market crash of October 29, 1929 (known as Black Tuesday). From there, it quickly spread to almost every country in the world. The Superb Depression had devastating effects in virtually every country, rich and poor. Individual income, tax revenue, profits and prices dropped, while international trade plunged by more than 50%. Unemployment in the U.S. rose to 25%, and in some countries rose as high as 33%.[Three] Cities all around the world were hit hard, especially those dependent on strenuous industry. Construction was virtually halted in many countries. Farming and rural areas suffered as crop prices fell by approximately 60%.[Four][Five] Facing plummeting request with few alternate sources of jobs, areas dependent on primary sector industries such as cash cropping, mining and logging suffered the most. Some economies embarked to recover by the mid-1930s. In many countries, the negative effects of the Superb Depression lasted until the embark of World War II. Contents [hide] 1 Embark of the Good Depression 1.1 Economic indicators Two Causes Two.1 Demand-driven Two.1.1 Keynesian Two.1.Two Breakdown of international trade Two.1.Trio Debt deflation Two.Two Monetarist Two.Three Fresh classical treatment Two.Four Austrian School Two.Five Marxist Two.6 Inequality Two.7 Productivity shock Trio Turning point and recovery Three.1 Gold standard Trio.Two World War II and recovery Four Effects Four.1 Australia Four.Two Canada Four.Three Chile Four.Four France Four.Five Germany Four.6 Japan Four.7 Latin America Four.8 Netherlands Four.9 Portugal Four.Ten SouthAfricaFour.11 Soviet Union Four.12 Spain Four.13 Sweden Four.14 Thailand Four.15 United Kingdom Four.16 United States Five Political consequences 6 Literature 7 Naming 7.1 Other “good depressions” 8 Comparison with the late-2000s recession 9 See also Ten References 11 Further reading 12 Outer links Begin of the Fine DepressionSee also: Timeline of the Superb DepressionThe Dow Jones Industrial, 1928-1930 Economic historians usually attribute the embark of the Fine Depression to the unexpected devastating collapse of US stock market prices on October 29, 1929, known as Black Tuesday; some dispute this conclusion, and see the stock crash as a symptom, rather than a cause, of the Fine Depression.[Trio][Ten] Even after the Wall Street Crash of 1929, optimism persisted for some time; John D. Rockefeller said that “These are days when many are discouraged. In the 93 years of my life, depressions have come and gone. Prosperity has always returned and will again.” The stock market turned upward in early 1930, returning to early 1929 levels by April. This was still almost 30% below the peak of September 1929. Together, government and business spent more in the very first half of 1930 than in the corresponding period of the previous year. On the other arm, consumers, many of whom had suffered severe losses in the stock market the previous year, cut back their expenditures by ten percent. Likewise, beginning in mid-1930, a severe drought ravaged the agricultural heartland of the USA. By mid-1930, interest rates had dropped to low levels, but expected deflation and the continuing reluctance of people to borrow meant that consumer spending and investment were depressed. By May 1930, automobile sales had declined to below the levels of 1928. Prices in general began to decline, albeit wages held stable in 1930; but then a deflationary spiral commenced in 1931. Conditions were worse in farming areas, where commodity prices plunged, and in mining and logging areas, where unemployment was high and there were few other jobs. The decline in the US economy was the factor that pulled down most other countries at very first, then internal weaknesses or strengths in each country made conditions worse or better. Frantic attempts to shore up the economies of individual nations through protectionist policies, such as the 1930 U.S. Smoot-Hawley Tariff Act and retaliatory tariffs in other countries, exacerbated the collapse in global trade. By late 1930, a constant decline in the world economy had set in, which did not reach bottom until 1933. Economic indicators Switch in economic indicators 1929-32 United States Fine Britain France Germany Industrial production -46% -23% -24% -41% Wholesale prices -32% -33% -34% -29% Foreign trade -70% -60% -54% -61% Unemployment +607% +129% +214% +232% CausesMain article: Causes of the Superb DepressionCrowd gathering at the intersection of Wall Street and Broad Street after the 1929 crash. There were numerous causes for the very first downturn in 1929. These include the structural weaknesses and specific events that turned it into a major depression and the manner in which the downturn spread from country to country. In relation to the 1929 downturn, historians emphasize structural factors like major bank failures and the stock market crash. In contrast, economists (such as Barry Eichengreen, Milton Friedman and Peter Temin) point to monetary factors such as deeds by the US Federal Reserve that contracted the money supply, as well as Britain’s decision to come back to the Gold Standard at pre-World War I parities (US$Four.86:Â£1). Recessions and business cycles are thought to be a normal part of living in a world of inexact balances inbetween supply and request. What turns a normal recession or ‘ordinary’ business cycle into a depression is a subject of much debate and concern. Scholars have not agreed on the exact causes and their relative importance. The search for causes is closely connected to the issue of avoiding future depressions. Thus, the individual political and policy viewpoints of scholars greatly color their analysis of historic events occurring eight decades ago. An even larger question is whether the Good Depression was primarily a failure on the part of free markets or a failure of government efforts to regulate interest rates, curtail widespread bank failures, and control the money supply. Those who believe in a larger economic role for the state believe that it was primarily a failure of free markets, while those who believe in a smaller role for the state believe that it was primarily a failure of government that compounded the problem. Current theories may be broadly classified into two main points of view and several heterodox points of view. Very first, there are demand-driven theories, most importantly Keynesian economics, but also including those who point to the breakdown of international trade, and Institutional economists who point to underconsumption and over-investment (causing an economic bubble), malfeasance by bankers and industrialists, or incompetence by government officials. The consensus among demand-driven theories is that a large-scale loss of confidence led to a unexpected reduction in consumption and investment spending. Once funk and deflation set in, many people believed they could avoid further losses by keeping clear of the markets. Holding money became profitable as prices dropped lower and a given amount of money bought ever more goods, exacerbating the drop in request. Secondly, there are the monetarists, who believe that the Fine Depression commenced as an ordinary recession, but that significant policy mistakes by monetary authorities (especially the Federal Reserve), caused a shrinking of the money supply which greatly exacerbated the economic situation, causing a recession to descend into the Superb Depression. Related to this explanation are those who point to debt deflation causing those who borrow to owe ever more in real terms. Lastly, there are various heterodox theories that downplay or reject the explanations of the Keynesians and monetarists. For example, some fresh classical macroeconomists have argued that various labor market policies imposed at the begin caused the length and severity of the Superb Depression. The Austrian school of economics concentrates on the macroeconomic effects of money supply, and how central banking decisions can lead to over-investment (economic bubble). Demand-drivenUS industrial production (1928-39) US Farm Prices, (1928-35) Keynesian British economist John Maynard Keynes argued in General Theory of Employment Interest and Money that lower aggregate expenditures in the economy contributed to a massive decline in income and to employment that was well below the average. In such a situation, the economy reached equilibrium at low levels of economic activity and high unemployment. Keynes’ basic idea was ordinary: to keep people fully employed, governments have to run deficits when the economy is slowing, as the private sector would not invest enough to keep production at the normal level and bring the economy out of recession. Keynesian economists called on governments during times of economic crisis to pick up the slack by enhancing government spending and/or cutting taxes. As the Depression wore on, Franklin D. Roosevelt attempted public works, farm subsidies, and other devices to restart the US economy, but never downright gave up attempting to balance the budget. According to the Keynesians, this improved the economy, but Roosevelt never spent enough to bring the economy out of recession until the embark of World War II. Breakdown of international trade Many economists have argued that the acute decline in international trade after 1930 helped to worsen the depression, especially for countries significantly dependent on foreign trade. Most historians and economists partly blame the American Smoot-Hawley Tariff Act (enacted June 17, 1930) for worsening the depression by earnestly reducing international trade and causing retaliatory tariffs in other countries. While foreign trade was a petite part of overall economic activity in the U.S. and was concentrated in a few businesses like farming, it was a much larger factor in many other countries. The average ad valorem rate of duties on dutiable imports for 1921-1925 was 25.9% but under the fresh tariff it leaped to 50% in 1931-1935. In dollar terms, American exports declined from about $Five.Two billion in 1929 to $1.7 billion in 1933; but prices also fell, so the physical volume of exports only fell by half. Hardest hit were farm commodities such as wheat, cotton, tobacco, and lumber. According to this theory, the collapse of farm exports caused many American farmers to default on their loans, leading to the bank runs on petite rural banks that characterized the early years of the Fine Depression. Debt deflation Irving Fisher argued that the predominant factor leading to the Superb Depression was over-indebtedness and deflation. Fisher tied liberate credit to over-indebtedness, which fueled speculation and asset bubbles. He then outlined 9 factors interacting with one another under conditions of debt and deflation to create the mechanics of boom to bust. The chain of events proceeded as goes after: Debt liquidation and distress selling Spasm of the money supply as bank loans are paid off A fall in the level of asset prices A still greater fall in the net worths of business, precipitating bankruptcies A fall in profits A reduction in output, in trade and in employment. Pessimism and loss of confidence Hoarding of money A fall in nominal interest rates and a rise in deflation adjusted interest rates. Crowds outside the Bank of United States in Fresh York after its failure in 1931. During the Crash of 1929 preceding the Fine Depression, margin requirements were only 10%.[Legal] Brokerage firms, in other words, would lend $9 for every $1 an investor had deposited. When the market fell, brokers called in these loans, which could not be paid back.[Nineteen] Banks began to fail as debtors defaulted on debt and depositors attempted to withdraw their deposits en masse, triggering numerous bank runs. Government assures and Federal Reserve banking regulations to prevent such panics were ineffective or not used. Bank failures led to the loss of billions of dollars in assets.[Nineteen] Outstanding debts became stronger, because prices and incomes fell by 20-50% but the debts remained at the same dollar amount. After the fright of 1929, and during the very first Ten months of 1930, 744 US banks failed. (In all, 9,000 banks failed during the 1930s). By April 1933, around $7 billion in deposits had been frozen in failed banks or those left unlicensed after the March Bank Holiday. Bank failures snowballed as desperate bankers called in loans which the borrowers did not have time or money to repay. With future profits looking poor, capital investment and construction slowed or downright ceased. In the face of bad loans and worsening future prospects, the surviving banks became even more conservative in their lending.[Nineteen] Banks built up their capital reserves and made fewer loans, which intensified deflationary pressures. A perverse cycle developed and the downward spiral accelerated. The liquidation of debt could not keep up with the fall of prices which it caused. The mass effect of the stampede to liquidate enhanced the value of each dollar owed, relative to the value of declining asset holdings. The very effort of individuals to lessen their cargo of debt effectively enhanced it. Paradoxically, the more the debtors paid, the more they owed. This self-aggravating process turned a 1930 recession into a 1933 superb depression. Macroeconomists including Ben Bernanke, the current chairman of the U.S. Federal Reserve Bank, have revived the debt-deflation view of the Good Depression originated by Fisher. MonetaristCrowd at Fresh York’s American Union Bank during a bank run early in the Good Depression. Monetarists, including Milton Friedman and current Federal Reserve System chairman Ben Bernanke, argue that the Good Depression was mainly caused by monetary spasm, the consequence of poor policy-making by the American Federal Reserve System and continued crisis in the banking system. In this view, the Federal Reserve, by not acting, permitted the money supply as measured by the M2 to shrink by one-third from 1929-1933, thereby converting a normal recession into the Good Depression. Friedman argued that the downward turn in the economy, embarking with the stock market crash, would have been just another recession. The Federal Reserve permitted some large public bank failures – particularly that of the Fresh York Bank of the United States – which produced funk and widespread runs on local banks, and the Federal Reserve sat idly by while banks collapsed. He claimed that, if the Fed had provided emergency lending to these key banks, or simply bought government bonds on the open market to provide liquidity and increase the quantity of money after the key banks fell, all the rest of the banks would not have fallen after the large ones did, and the money supply would not have fallen as far and as quick as it did. With significantly less money to go around, businessmen could not get fresh loans and could not even get their old loans renewed, forcing many to stop investing. This interpretation blames the Federal Reserve for inaction, especially the Fresh York branch. One reason why the Federal Reserve did not act to limit the decline of the money supply was regulation. At that time, the amount of credit the Federal Reserve could issue was limited by the Federal Reserve Act, which required 40% gold backing of Federal Reserve Notes issued. By the late 1920s, the Federal Reserve had almost hit the limit of allowable credit that could be backed by the gold in its possession. This credit was in the form of Federal Reserve request notes. A “promise of gold” is not as good as “gold in the forearm”, particularly when they only had enough gold to cover 40% of the Federal Reserve Notes outstanding. During the bank panics a portion of those request notes were redeemed for Federal Reserve gold. Since the Federal Reserve had hit its limit on allowable credit, any reduction in gold in its vaults had to be accompanied by a greater reduction in credit. On April Five, 1933, President Roosevelt signed Executive Order 6102 making the private ownership of gold certificates, coins and bullion illegal, reducing the pressure on Federal Reserve gold. Fresh classical treatment Latest work from a neoclassical perspective concentrates on the decline in productivity that caused the initial decline in output and a prolonged recovery due to policies that affected the labor market. This work, collected by Kehoe and Prescott, decomposes the economic decline into a decline in the labor force, capital stock, and the productivity with which these inputs are used. This examine suggests that theories of the Good Depression have to explain an initial severe decline but rapid recovery in productivity, relatively little switch in the capital stock, and a prolonged depression in the labor force. This analysis rejects theories that concentrate on the role of savings and posit a decline in the capital stock. Austrian School Another explanation comes from the Austrian School of economics. Theorists of the “Austrian School” who wrote about the Depression include Austrian economist Friedrich Hayek and American economist Murray Rothbard, who wrote America’s Fine Depression (1963). In their view and like the monetarists, the Federal Reserve, which was created in 1913, shoulders much of the blame; but in opposition to the monetarists, they argue that the key cause of the Depression was the expansion of the money supply in the 1920s that led to an unsustainable credit-driven boom. In the Austrian view it was this inflation of the money supply that led to an unsustainable boom in both asset prices (stocks and bonds) and capital goods. By the time the Fed belatedly tightened in 1928, it was far too late and, in the Austrian view, a significant economic spasm was unpreventable. According to the Austrians, the artificial interference in the economy was a disaster prior to the Depression, and government efforts to prop up the economy after the crash of 1929 only made things worse. According to Rothbard, government intervention delayed the market’s adjustment and made the road to finish recovery more difficult. However, Hayek, unlike Rothbard, also believed, along with the monetarists, that the Federal Reserve further contributed to the problems of the Depression by permitting the money supply to shrink during the earliest years of the Depression. Marxist Karl Marx eyed recession and depression as unavoidable under free-market capitalism as there are no confinements on accumulations of capital other than the market itself. In the Marxist view, capitalism tends to create unbalanced accumulations of wealth, leading to over-accumulations of capital which inevitably lead to a crisis. This especially acute bust is a regular feature of the boom and bust pattern of what Marxists term “chaotic” capitalist development. It is a tenet of many Marxists groupings that such crises are unavoidable and will be increasingly severe until the contradictions inherent in the mismatch inbetween the mode of production and the development of productive compels reach the final point of failure. At which point, the crisis period encourages intensified class conflict and compels societal switch. InequalityPower farming displaces tenants from the land in the western dry cotton area. Childress County, Texas, 1938. Two economists of the 1920s, Waddill Catchings and William Trufant Foster, popularized a theory that influenced many policy makers, including Herbert Hoover, Henry A. Wallace, Paul Douglas, and Marriner Eccles. It held the economy produced more than it consumed, because the consumers did not have enough income. Thus the unequal distribution of wealth via the 1920s caused the Excellent Depression. According to this view, the root cause of the Good Depression was a global over-investment in mighty industry capacity compared to wages and earnings from independent businesses, such as farms. The solution was the government must pump money into consumers’ pockets. That is, it must redistribute purchasing power, maintain the industrial base, but re-inflate prices and wages to force as much of the inflationary increase in purchasing power into consumer spending. The economy was overbuilt, and fresh factories were not needed. Foster and Catchings recommended federal and state governments embark large construction projects, a program followed by Hoover and Roosevelt. Productivity shock “It cannot be emphasized too strongly that the [productivity, output and employment] trends we are describing are long-time trends and were accurately evident prior to 1929. These trends are in nowise the result of the present depression, nor are they the result of the World War. On the contrary, the present depression is a collapse resulting from these long-term trends.”  M. King Hubbert The very first three decades of the 20th century eyed economic output surge with electrification, mass production and motorized farm machinery, and because of the rapid growth in productivity there was a lot of excess production capacity and the work week was being diminished. The dramatic rise in productivity of major industries in the U. S. and the effects of productivity on output, wages and the work week are discussed by Spurgeon Bell in his book Productivity, Wages, and National Income (1940). Turning point and recoveryThe overall course of the Depression in the United States, as reflected in per-capita GDP (average income per person) shown in constant year 2000 dollars, plus some of the key events of the period. In most countries of the world, recovery from the Excellent Depression began in 1933. In the U.S., recovery began in early 1933, but the U.S. did not come back to 1929 GNP for over a decade and still had an unemployment rate of about 15% in 1940, albeit down from the high of 25% in 1933. The measurement of the unemployment rate in this time period was unsophisticated and complicated by the presence of massive underemployment, in which employers and workers engaged in rationing of jobs. There is no consensus among economists regarding the motive force for the U.S. economic expansion that continued through most of the Roosevelt years (and the 1937 recession that interrupted it). Roosevelt’s ebullient public personality, conveyed through his declaration that “the only thing we have to fear is fear itself” and his “fireside talks” on the radio did a good deal to help restore the nation’s confidence. Fireside Talk 1 On the Banking CrisisRoosevelt’s very first Fireside Talk on the Banking Crisis (March 12, 1933) Problems listening to this file? See media help. The common view among mainstream economists is that Roosevelt’s Fresh Deal policies either caused or accelerated the recovery, albeit his policies were never aggressive enough to bring the economy fully out of recession. Some economists have also called attention to the positive effects from expectations of reflation and rising nominal interest rates that Roosevelt’s words and deeds portended. It was the rollback of those same reflationary policies that led to the interrupting recession of 1937. One contributing policy that reversed reflation was the Banking Act of 1935, which effectively raised reserve requirements, causing a monetary spasm that helped to thwart the recovery. GDP returned to its upward slope in 1938. According to Christina Romer, the money supply growth caused by phat international gold inflows was a crucial source of the recovery of the United States economy, and that the economy demonstrated little sign of self-correction. The gold inflows were partly due to devaluation of the U.S. dollar and partly due to deterioration of the political situation in Europe. In their book, A Monetary History of the United States, Milton Friedman and Anna J. Schwartz also attributed the recovery to monetary factors, and contended that it was much slowed by poor management of money by the Federal Reserve System. Current Chairman of the Federal Reserve Ben Bernanke agrees that monetary factors played significant roles both in the worldwide economic decline and eventual recovery. Bernanke, also sees a strong role for institutional factors, particularly the rebuilding and restructuring of the financial system, and points out that the Depression needs to be examined in international perspective. Gold standardThe Depression in international perspective. Economic studies have indicated that just as the downturn was spread worldwide by the rigidities of the Gold Standard, it was suspending gold convertibility (or devaluing the currency in gold terms) that did most to make recovery possible. What policies countries followed after casting off the gold standard, and what results followed varied widely. Every major currency left the gold standard during the Superb Depression. Superb Britain was the very first to do so. Facing speculative attacks on the pound and depleting gold reserves, in September 1931 the Bank of England ceased exchanging pound notes for gold and the pound was floated on foreign exchange markets. Excellent Britain, Japan, and the Scandinavian countries left the gold standard in 1931. Other countries, such as Italy and the U.S., remained on the gold standard into 1932 or 1933, while a few countries in the so-called “gold bloc”, led by France and including Poland, Belgium and Switzerland, stayed on the standard until 1935-1936. According to later analysis, the earliness with which a country left the gold standard reliably predicted its economic recovery. For example, Fine Britain and Scandinavia, which left the gold standard in 1931, recovered much earlier than France and Belgium, which remained on gold much longer. Countries such as China, which had a silver standard, almost avoided the depression entirely. The connection inbetween leaving the gold standard as a strong predictor of that country’s severity of its depression and the length of time of its recovery has been shown to be consistent for dozens of countries, including developing countries. This partly explains why the practice and length of the depression differed inbetween national economies. A female factory worker in 1942, Fort Worth, Texas. Women entered the workforce as studs were drafted into the armed compels. World War II and recovery The common view among economic historians is that the Fine Depression ended with the advent of World War II. Many economists believe that government spending on the war caused or at least accelerated recovery from the Excellent Depression, however some consider that it did not play a very large role in the recovery. It did help in reducing unemployment. The rearmament policies leading up to World War II helped stimulate the economies of Europe in 1937-39. By 1937, unemployment in Britain had fallen to 1.Five million. The mobilization of manpower following the outbreak of war in 1939 ended unemployment. America’s entry into the war in 1941 ultimately eliminated the last effects from the Good Depression and brought the U.S. unemployment rate down below 10%. In the U.S., massive war spending doubled economic growth rates, either masking the effects of the Depression or essentially ending the Depression. Businessmen overlooked the mounting national debt and strenuous fresh taxes, redoubling their efforts for greater output to take advantage of generous government contracts. EffectsUnemployed guys march in Toronto, Ontario, CanadaDuring the Depression bankers became so unpopular that bank robbers, such as Bonnie and Clyde, became folk heroes. The majority of countries set up ease programs, and most underwent some sort of political upheaval, pushing them to the left or right. In some states, the desperate citizens turned toward nationalist demagoguery – the most infamous example being Adolf Hitler – setting the stage for World War II in 1939. Australia Main article: Excellent Depression in Australia Australia’s extreme dependence on agricultural and industrial exports meant it was one of the hardest-hit countries in the Western world. Falling export request and commodity prices placed massive downward pressures on wages. Further, unemployment reached a record high of 29% in 1932, with incidents of civil unrest becoming common. After 1932, an increase in wool and meat prices led to a gradual recovery. Canada Main article: Excellent Depression in Canada Harshly affected by both the global economic downturn and the Dust Cup, Canadian industrial production had fallen to only 58% of the 1929 level by 1932, the 2nd lowest level in the world after the United States, and well behind nations such as Britain, which spotted it fall only to 83% of the 1929 level. Total national income fell to 56% of the 1929 level, again worse than any nation apart from the United States. Unemployment reached 27% at the depth of the Depression in 1933. During the 1930s, Canada employed a very limitary immigration policy. Chile See also: Economic history of Chile The League of Nations labeled Chile the country hardest hit by the Excellent Depression because 80% of government revenue came from exports of copper and nitrates, which were in low request. Chile originally felt the influence of the Fine Depression in 1930, when GDP dropped 14%, mining income declined 27%, and export earnings fell 28%. By 1932, GDP had shrunk to less than half of what it had been in 1929, exacting a terrible toll in unemployment and business failures. Influenced profoundly by the Good Depression, many national leaders promoted the development of local industry in an effort to insulate the economy from future outward shocks. After six years of government austerity measures, which succeeded in reestablishing Chile’s creditworthiness, Chileans elected to office during the 1938-58 period a succession of center and left-of-center governments interested in promoting economic growth by means of government intervention. Prompted in part by the devastating 1939 ChillÃ¡n earthquake, the Popular Front government of Pedro Aguirre Cerda created the Production Development Corporation (CorporaciÃ³n de Fomento de la ProducciÃ³n, CORFO) to encourage with subsidies and direct investments an ambitious program of import substitution industrialization. Consequently, as in other Latin American countries, protectionism became an entrenched aspect of the Chilean economy. France Main article: Excellent Depression in France The Depression began to affect France around 1931. France’s relatively high degree of self-sufficiency meant the harm was considerably less than in nations like Germany. Hardship and unemployment were high enough to lead to rioting and the rise of the socialist Popular Front. Ultra-nationalist groups also witnessed enlargened popularity, albeit democracy prevailed into World War II. Germany Main article: Weimar RepublicAdolf Hitler speaking in 1935 Germany’s Weimar Republic was hit hard by the depression, as American loans to help rebuild the German economy now stopped. Unemployment soared, especially in larger cities, and the political system veered toward extremism. The unemployment rate reached almost 30% in 1932, bolstering support for the anti-capitalist Nazi (NSDAP) and Communist (KPD) parties, which both rose in the years following the crash to altogether wield a Reichstag majority following the general election in July 1932. Repayment of the war reparations due by Germany were suspended in 1932 following the Lausanne Conference of 1932. By that time, Germany had repaid one eighth of the reparations. Hitler and the Nazi Party came to power in January 1933, establishing a totalitarian single-party state within months and initiating the path towards World War II, the most devastating conflict in world history. Japan The Good Depression did not strongly affect Japan. The Japanese economy shrank by 8% during 1929-31. Japan’s Finance Minister Takahashi Korekiyo was the very first to implement what have come to be identified as Keynesian economic policies: very first, by large fiscal stimulus involving deficit spending; and 2nd, by devaluing the currency. Takahashi used the Bank of Japan to sterilize the deficit spending and minimize resulting inflationary pressures. Econometric studies have identified the fiscal stimulus as especially effective. The devaluation of the currency had an instant effect. Japanese textiles began to displace British textiles in export markets. The deficit spending proved to be most profound. The deficit spending went into the purchase of munitions for the armed compels. By 1933, Japan was already out of the depression. By 1934, Takahashi realized that the economy was in danger of overheating, and to avoid inflation, moved to reduce the deficit spending that went towards armaments and munitions. This resulted in a strong and swift negative reaction from nationalists, especially those in the army, culminating in his assassination in the course of the February 26 Incident. This had a chilling effect on all civilian bureaucrats in the Japanese government. From 1934, the military’s dominance of the government continued to grow. Instead of reducing deficit spending, the government introduced price controls and rationing schemes that diminished, but did not eliminate inflation, which would remain a problem until the end of World War II. Family during the Good Depression, California, 1936 The deficit spending had a transformative effect on Japan. Japan’s industrial production doubled during the 1930s. Further, in 1929 the list of the largest firms in Japan was predominated by light industries, especially textile companies (many of Japan’s automakers, like Toyota, have their roots in the textile industry). By 1940 light industry had been displaced by intense industry as the largest firms inwards the Japanese economy. Latin America Main article: Excellent Depression in Latin America Because of high levels of U.S. investment in Latin American economies, they were severely bruised by the Depression. Within the region, Chile, Bolivia and Peru were particularly badly affected. Netherlands Main article: Good Depression in the Netherlands From harshly 1931-1937, the Netherlands suffered a deep and exceptionally long depression. This depression was partly caused by the after-effects of the Stock Market Crash of 1929 in the U.S., and partly by internal factors in the Netherlands. Government policy, especially the very late pulling down of the Gold Standard, played a role in prolonging the depression. The Good Depression in the Netherlands led to some political instability and riots, and can be linked to the rise of the Dutch national-socialist party NSB. The depression in the Netherlands eased off somewhat at the end of 1936, when the government ultimately dropped the Gold Standard, but real economic stability did not comeback until after World War II. Buried machinery in a barn lot; South Dakota, May 1936. The Dust Cup on the Superb Plains coincided with the Good Depression. Portugal Main article: Economy of Portugal Already under the rule of a dictatorial junta, the Ditadura Nacional, Portugal suffered no turbulent political effects of the Depression, albeit Antonio de Oliveira Salazar, already appointed Minister of Finance in 1928 greatly expanded his powers and in 1932 rose to Prime Minister of Portugal to found the Estado Novo, an authoritarian corporatist dictatorship. With the budget balanced in 1929, the effects of the depression were relaxed through harsh measures towards budget balance and autarchy, causing social discontent but stability and, eventually, an incredible economic growth. The regime outlived Salazar himself before overthrown in the Carnation Revolution in 1974, initiating a road towards the restoration of democracy. South Africa Main article: Good Depression in South Africa As world trade slumped, request for South African agricultural and mineral exports fell drastically. The Carnegie Commission on Poor Whites had concluded in 1931 that almost one third of Afrikaners lived as paupers. It is believed that the social discomfort caused by the depression was a contributing factor in the 1933 split inbetween the “gesuiwerde” (purified) and “smelter” (fusionist) factions within the National Party and the National Party’s subsequent fusion with the South African Party.[Sixty nine] Eventually, the gesuiwerde faction of Daniel Malan would go on to form its own party and take over the government after the 1948 election, bringing about the doctrine of apartheid, instituting and extending racial segregation, which would see an end only in 1994. Soviet Union Many Western intellectuals looked upon Soviet Union with sympathy. Jennifer Burns wrote, “As the Fine Depression ground on and unemployment soared, intellectuals began unfavorably comparing their faltering capitalist economy to Russian Communism. … More than ten years after the Revolution, Communism was eventually reaching total flower, according to the Fresh York Times reporter Walter Duranty, a Stalin fan who passionately debunked accounts of the Ukraine famine, a man-made disaster that would leave millions dead.” Spain Main article: Economy of Spain Greatly due to impopular economic policies, Prime Minister Jose Primo de Rivera resigned in 1930, followed by the ousting of King Alfonso XIII in the following year. A fragile democracy was established, ripped at by economic problems and social discontent, culminating in the divisive general election of 1936 and the subsequent Spanish Civil War, culminating in an authoritarian regime under general Francisco Franco which was little by little disestablished following his death in 1975, with the very first elections since Depression held in 1977. Sweden Main article: Economy of Sweden Taking place in the midst of a short-lived government and a less-than-a-decade old Swedish democracy, events such as those surrounding Ivar Kreuger (who eventually committed suicide) remain infamous in Swedish history. Eventually, the Social Democrats under Per Albin Hansson would form their very first long-lived government in 1932 based on strong interventionist and welfare state policies, monopolizing the office of Prime Minister until 1976 with the foot and short-lived exception of Axel Pehrsson-Bramstorp’s “summer cabinet” in 1936. During forty years of hegemony, it was the most successful political party in the history of Western liberal democracy. Thailand In Thailand, then known as the kingdom of Siam, the Good Depression contributed to the end of the absolute monarchy of King Rama VII in the Siamese revolution of 1932. Unemployed studs hop train, Canada, c.1933 United Kingdom Main article: Superb Depression in the United Kingdom The effects on the northern industrial areas of Britain were instant and devastating, as request for traditional industrial products collapsed. By the end of 1930 unemployment had more than doubled from 1 million to Two.Five million (20% of the insured workforce), and exports had fallen in value by 50%. In 1933, 30% of Glaswegians were unemployed due to the severe decline in intense industry. In some towns and cities in the north east, unemployment reached as high as 70% as shipbuilding fell 90%. The National Thirst March of September-October 1932 was the largest of a series of thirst marches in Britain in the 1920s and 1930s. About 200,000 unemployed fellows were sent to the work camps, which continued in operation until 1939. In the less industrial Midlands and South of England, the effects were short-lived and the later 1930s were a prosperous time. Growth in modern manufacture of electrical goods and a boom in the motor car industry was helped by a growing southern population and an expanding middle class. Agriculture also witnessed a boom during this period. See also: North-South divide (England) United States Main articles: Good Depression in the United States and Fresh DealShacks, put up by the Bonus Army (World War I veterans) on the Anacostia flats, Washington, D.C., searing after the battle with the 1,000 soldiers accompanied by tanks and machine guns, 1932. Bennett buggies, or “Hoover wagons”, cars pulled by horses, were used by farmers too impoverished to purchase gasoline. President Herbert Hoover began numerous programs, all of which failed to switch roles the downturn. In June 1930 Congress approved the Smoot-Hawley Tariff Act which raised tariffs on thousands of imported items. The intent of the Act was to encourage the purchase of American-made products by enlargening the cost of imported goods, while raising revenue for the federal government and protecting farmers. Other nations enlargened tariffs on American-made goods in retaliation, reducing international trade, and worsening the Depression. In 1931 Hoover urged the major banks in the country to form a consortium known as the National Credit Corporation (NCC). By 1932, unemployment had reached 23.6%, and it peaked in early 1933 at 25%, drought persisted in the agricultural heartland, businesses and families defaulted on record numbers of loans, and more than Five,000 banks had failed. Hundreds of thousands of Americans found themselves homeless, and began congregating in shanty towns – dubbed “Hoovervilles” – that began to show up across the country. In response, President Hoover and Congress approved the Federal Home Loan Bank Act, to spur fresh home construction, and reduce foreclosures. The final attempt of the Hoover Administration to stimulate the economy was the passage of the Emergency Ease and Construction Act (ERA) which included funds for public works programs such as dams and the creation of the Reconstruction Finance Corporation (RFC) in 1932. The RFC’s initial purpose was to provide government-secured loans to financial institutions, railroads and farmers. Quarter by quarter the economy went downhill, as prices, profits and employment fell, leading to the political realignment in 1932 that brought to power Franklin Delano Roosevelt. Unemployed boys queued outside a depression soup kitchen opened in Chicago by Al Capone, 1931. The storefront sign reads “Free Soup, Coffee and Doughnuts for the Unemployed.” Shortly after President Roosevelt was inaugurated in 1933, drought and erosion combined to cause the Dust Cup, shifting hundreds of thousands of displaced persons off their farms in the Midwest. From his inauguration onward, Roosevelt argued that restructuring of the economy would be needed to prevent another depression or avoid prolonging the current one. Fresh Deal programs sought to stimulate request and provide work and ease for the impoverished through enhanced government spending and the institution of financial reforms. The Securities Act of 1933 comprehensively regulated the securities industry. This was followed by the Securities Exchange Act of 1934 which created the Securities and Exchange Commission. However amended, key provisions of both Acts are still in force. Federal insurance of bank deposits was provided by the FDIC, and the Glass-Steagall Act. The institution of the National Recovery Administration (NRA) remains a controversial act to this day. The NRA made a number of sweeping switches to the American economy until it was deemed unconstitutional by the Supreme Court of the United States in 1935. CCC workers constructing road, 1933. Over Trio million unemployed youthfull guys were taken out of the cities and placed into 2600+ work camps managed by the CCC. Early switches by the Roosevelt administration included: Instituting regulations to fight deflationary “cut-throat competition” through the NRA. Setting minimum prices and wages, labor standards, and competitive conditions in all industries through the NRA. Encouraging unions that would raise wages, to increase the purchasing power of the working class. Cutting farm production to raise prices through the Agricultural Adjustment Act and its successors. Forcing businesses to work with government to set price codes through the NRA. These reforms, together with several other ease and recovery measures, are called the Very first Fresh Deal. Economic stimulus was attempted through a fresh alphabet soup of agencies set up in 1933 and 1934 and previously extant agencies such as the Reconstruction Finance Corporation. By 1935, the “2nd Fresh Deal” added Social Security (which did not embark making large payouts until much later), a jobs program for the unemployed (the Works Progress Administration, WPA) and, through the National Labor Relations Board, a strong stimulus to the growth of labor unions. In 1929, federal expenditures constituted only 3% of the GDP. The national debt as a proportion of GNP rose under Hoover from 20% to 40%. Roosevelt kept it at 40% until the war began, when it soared to 128%. WPA employed 2-3 million unemployed at unskilled labor. By 1936, the main economic indicators had regained the levels of the late 1920s, except for unemployment, which remained high at 11%, albeit this was considerably lower than the 25% unemployment rate seen in 1933. In the spring of 1937, American industrial production exceeded that of 1929 and remained level until June 1937. In June 1937, the Roosevelt administration cut spending and enhanced taxation in an attempt to balance the federal budget. The American economy then took a acute downturn, lasting for 13 months through most of 1938. Industrial production fell almost 30 per cent within a few months and production of durable goods fell even swifter. Unemployment leaped from 14.3% in 1937 to Nineteen.0% in 1938, rising from Five million to more than 12 million in early 1938. Manufacturing output fell by 37% from the 1937 peak and was back to 1934 levels. Producers diminished their expenditures on durable goods, and inventories declined, but private income was only 15% lower than it had been at the peak in 1937. As unemployment rose, consumers’ expenditures declined, leading to further cutbacks in production. By May 1938 retail sales began to increase, employment improved, and industrial production turned up after June 1938. After the recovery from the Recession of 1937-1938, conservatives were able to form a bipartisan conservative coalition to stop further expansion of the Fresh Deal and, when unemployment dropped to 2% in the early 1940s, they abolished WPA, CCC and the PWA ease programs. Social Security remained in place. Political consequencesThe crisis had many political consequences, among which was the abandonment of classic economic liberal approaches, which Roosevelt substituted in the U.S. with Keynesian policies. These policies magnified the role of the federal government in the national economy. Inbetween 1933 and 1939, federal expenditure tripled, and Roosevelt’s critics charged that he was turning America into a socialist state. The Fine Depression was a main factor in the implementation of social democracy and planned economies in European countries after World War II (see Marshall Plan). Albeit Austrian economists had challenged Keynesianism since the 1920s, it was not until the 1970s, with the influence of Milton Friedman that the Keynesian treatment was politically questioned. LiteratureAnd the superb owners, who must lose their land in an upheaval, the good owners with access to history, with eyes to read history and to know the excellent fact: when property accumulates in too few palms it is taken away. And that companion fact: when a majority of the people are greedy and cold they will take by force what they need. And the little screaming fact that sounds through all history: repression works only to strengthen and knit the repressed. – The Grapes of Anger  The Fine Depression has been the subject of much writing, as authors have sought to evaluate an era that caused financial as well as emotional trauma. Perhaps the most noteworthy and famous novel written on the subject is The Grapes of Fury, published in 1939 and written by John Steinbeck, who was awarded both the Nobel Prize for literature and the Pulitzer Prize for the work. The novel concentrates on a poor family of sharecroppers who are coerced from their home as drought, economic hardship, and switches in the agricultural industry occur during the Fine Depression. Steinbeck’s Of Mice and Fellows is another significant novel about a journey during the Superb Depression. Additionally, Harper Lee’s To Kill a Mockingbird is set during the Fine Depression. Margaret Atwood’s Booker prize-winning The Blind Assassin is likewise set in the Superb Depression, centering on a privileged socialite’s love affair with a Marxist revolutionary. The era spurred the resurgence of social realism, practiced by many who began their writing careers on ease programs, especially the Federal Writers’ Project in the U.S. NamingFurther information: Depression (economics) The term “The Superb Depression” is most frequently attributed to British economist Lionel Robbins, whose 1934 book The Good Depression is credited with formalizing the phrase, however Hoover is widely credited with popularizing the term, informally referring to the downturn as a depression, with such uses as “Economic depression cannot be cured by legislative activity or executive pronouncement”, (December 1930, Message to Congress) and “I need not recount to you that the world is passing through a good depression”, (1931). The term “depression” to refer to an economic downturn dates to the 19th century, when it was used by varied Americans and British politicians and economists. Indeed, the very first major American economic crisis, the Scare of 1819, was described by then-president James Monroe as “a depression”, and the most latest economic crisis, the Depression of 1920-21, had been referred to as a “depression” by then president Calvin Coolidge. Financial crises were traditionally referred to as “panics”, most recently the major Funk of 1907, and the minor Funk of 1910-1911, tho’ the 1929 crisis was called “The Crash”, and the term “scare” has since fallen out of use. At the time of the Fine Depression, the term “The Good Depression” was already used to referred to the period 1873-96 (in the United Kingdom), or more narrowly 1873-79 (in the United States), which has retroactively been renamed the Long Depression. Other “good depressions” Other economic downturns have been called a “superb depression”, but none had been as widespread, or lasted for so long. Various nations have experienced brief or extended periods of economic downturns, which were referred to as “depressions”, but none have had such a widespread global influence. British economic historians used the term “excellent depression” to describe British conditions in the late 19th century, especially in agriculture, 1873-1896, a period now referred to as the Long Depression. The fall of communism in the Soviet Union led to a severe economic crisis and catastrophic fall in the standards of living in the 1990s in the former Eastern Bloc, most notably, in post-Soviet states, that was almost twice as intense as the Excellent Depression had been in the countries of Western Europe and the U.S. in the 1930s. Even before Russia’s financial crisis of 1998, Russia’s GDP was half of what it had been in the early 1990s, and some populations are still poorer as of 2009 than they were in 1989, including Ukraine, Moldova, Serbia, Central Asia, and the Caucasus. Some journalists and economists have taken to calling the late-2000s recession the “Superb Recession” in allusion to the Fine Depression. Comparison with the late-2000s recessionMain article: Comparisons inbetween the late-2000s recession and the Fine Depression Unlike the late-2000s recession, this recession was not synchronized by the global integration of markets. The recovery of the world’s financial systems tended to be quicker during the Fine Depression of the 1930s as opposed to the late-2000s recession. Half the unemployed have been out of work for over six months, something that wasn’t repeated until the late-2000s recession. All link that connect the rising inequality within Western economies along with the deflating request may exist in both recessions. 1928 and 1929 were the times in the 20th century that the wealth gap reached such skewed extremes; 2007 and 2008 eventually eyed the world reach fresh levels of wealth gap inequality that rivalled the years of 1928 and 1929.
What is the influence of gold mining on the economy?
Gold mining will provide gold, which is very valued, to the people. One point is that when people buy gold, it will proceed the currency flow and spendings, which will improve the economy and not let it fall into a recession. Gold can also be exported to countries where gold cannot be found as a natural resource, which certainly increases its trade market.
What influence does whale hunting have on the economy?
it doesnt have that much of an effect on the economy as such. it just makes the population of the species go down. whales are used for lots of things so in a wierd sort of way it helps.
In what ways can culture influence economies?
Culture can greatly influence economies by dictating their activity.In the latest US recession, a national obsession with status ledthe sub-prime mortgage crisis.
What is the influence of the tourism industry on the economy?
The influence is that it creates jobs and introduces money into areas that would otherwise remain unexploited
What influence does Mexico have on the global economy?
Mexico is the tenth largest economy in the world, with a GDP ofUS$1.85 trillion (2013). It is also the eleventh in terms ofpopulation (120,286,655) and the fifteenth and sixteenth largestimporting and exporting country (US$370.9 billion and US$370.7billion, respectively) worldwide. Mexico is also one of the countries with most trade agreements inthe world, having 12 free trade agreements with over 40 countriesincluding North and Central America, the European Free Trade Areaand Japan, putting more than 90% of its trade under free tradeagreements. Ultimately, albeit the BRIC countries (Brazil, Russia, India, China)are considered to be the fastest-growing developing economies – andmuch media attention has been paid to them – it is estimated thatby the end of 2050, Mexico will be the fifth largest economy in theworld, just behind China, the United States, India and Brazil.
Population and it’s influence on economy?
it has many impacts:- 1.higher the literacy level of population richer the economy will be. Two.large population if given decent training and health facilities can be asset for the country.
What influence has the euro had on the global economy?
The dollar has been the superior currency of the world economy for almost a century for a singlestaggering reason: It had no competition. No other economy came close to the size of the UnitedStates. Hence no currency could acquire the network externalities, economies of scale and scope, andpublic goods benefits necessary to rival the dollar at the global level. 1A similar situation for the UnitedKingdom explains sterling’s dominance in the 19th century.
What influence did cotton have on the South’s economy?
The cotton boom created a rural aristocracy who began to fantasise that they were knights of chivalry, too good to soil their palms in industry and commerce. When the war came, and they were prevented from exporting their cotton in exchange for war supplies, they had no manufacturing industry to fall back on, and were not able to manufacture the weapons they needed.
How did horses influence transportation and economy?
Well if horses were never used for transport then in the olden days ill people would not be able to get to the hospital. In my opinion it was fierce to use horses to go long distances and for strenuous labour. no
How do fossil fuels influence the economy?
They influence the economy in a very bad way, if you use them way to much, but if you don’t use them to much, then they will be fine and we will not have that much pollution.
What is the influence of corruption on Pakistan’s economy?
If there is corruption people’ll not pay tex ‘caz of which economy of Pakistan will certainly go towards decline……
What is the influence of climate on Georgia’s economy?
it draws in people with its hot and mild climate. People like to get away from the cold (if that’s where the live) and visit or budge to GA. Sooo, it helps out GA’s economy by having more people live here, or visit, and therefore needing to buy things (i.e. food, clothes, household appliances, a house, funiture, stay at a hotel ect.).
How do airplanes influence the economy?
Airplanes effect the economy, because there are airlines who own and build the airplanes, and who manage packing, maintenance and all profits coming in off of the plane flights
What are the influence of industrialisation on an economy?
It switched how the nation made $, from argricultural to industrial. In the beginning, Jefferson wished that we would stay an agrarian society, while Alexander Hamilton dreamed to industrialize. So, in the end, Hamilton evidently got his wish. (Tho’ it took a while.)
How does a corporate monopoly influence the economy?
A monopoly can have several positive and negative impacts on the economy: .
Create jobs with relatively high salary .
Research and development leads to advance in technology (since monopoly has more funds than other companies) .
Able to exploit economies of scale (due to large scale production being a monopoly) => low average unit cost. Negative impacts: .
High probability for the rigid to charge a higher price (since there are no competitors; monopolies are price makers) .
Act inefficiently (don’t have a fear of being competed out of the economy) .
Massive negative externalities especially on environments. Generally, monopoly are observed to have negative impacts on a country’s economy, justifying the creation of anti-trust laws (to break up the monopoly.)
Does the earthworm have an influence on the economy?
I would somewhat say yes, because earthworms live and fertilize the filth. And mud does affect the economy slightly. I mean, you do buy and sell filth for lawns and gardens. And without earthworms, our mud wouldn’t be good for growing things in.
What is the influence of outer debt on the economy?
Debt is detrimental to an economy in the long term. While the extra liquidity might, in the brief term, boost economic growth and activity, this benefit is outweighed by the numerous drawbacks debt has to the continual economic stability and growth of a nation. Debt is slavery. As governments take out more and more debt to pay for public sector expenses, they are, in a sense, digging themselves into an ever deepening slot. When interest commences to take part, the debt increases exponentially. In a very brief period of time, governments can soon become dazed with debt. Instead of paying for schools, hospitals, highways, the military or research and development, debt consumed governments are compelled to spend every available dollar on keeping up with interest. Another downside to debt is that it, on a macro scale, has the same characteristics and flaws as real money. A country where debt floods in loosely and frequently can create an over-supply of money. This can lead to inflation (the devaluation of a currency); further adding to economic deterioration. Debt is, in economic terms, a terrible solution to financial crisis. As we’ve seen in the U.S, Europe and Japan, many Western nations have opted to borrowing big and to not cut spending or raise revenue. Unless this switches, this will have terrible consequences for the future of not only these nations, but for the world economy in general.
How does religion influence the economy?
people donate to their religion which circulates more money. also, peolpe who go after tenets of their religion often perform acts of altruism which contribute positively to economic growth
How does global heating influence the economy?
Recognition of the amount of CO2 being spewed, city by city – nation by nation – 2nd by each precious 2nd, into our one any only Whisper Skinny Atmosphere ought to spur a resurgence in Green Technology – taking Care of our Future.
How would cloning have an influence on the economy?
If it was cloning something like say corn and you make it pest resistant. In that case that corn is not organic. Corn spreads it’s pollen like wild fire and it could ruin local business who stay in business because of their organic label. Cloning fruits and vegetables has become more advanced and it would save money and could help with the world food crisis as the cloned vegtibles are genetically superior but people tend to not like the idea of their food being cloned. It could have some set backs but in the long run it could greatly help. It kind of makes the idea of soilent green obsolete. Soilente green would be eaisier to make ill tell you that
How do earthquakes influence the economy?
The earthquake hazard poses the most serious intermediate term risk to the health, safety, and economic viability of many parts of the United States and across the world. Latest earthquakes demonstrated the risks to modern industrial societies from such cataclysmic events, affecting everything from massive loss of life, infrastructure harm, and financial instability. Much larger earthquakes can be expected to occur adjacent to many metropolitan regions in the United States. Examples: 1. The Northridge earthquake (1994) was a modest (magnitude 6.7) event which caused 57 deaths, over $20 billion of harm, and created major disruption of the Los Angeles area infrastructure. Two. The Kobe, Japan earthquake was another modest 6.9 magnitude event that same year which caused Five,480 deaths, over 150 billion dollars of harm and a major disruption of Japan’s economy with global impacts. Expected Accomplishments: .
Characterize spatio-temporal variability of motions of the Earth’s surface globally .
Understand fault system interactions and stress transfer physics .
Model and predict the behaviors of earthquake systemsPractical Benefit to Society: .
Identify and validate possible local and regional precursors to earthquakes .
Refine global maps of natural hazards to support mitigation strategies .
Enable rapid response to seismic disasters
How has sports marketing impacted the economy?
Sports impacted many products such as Sprite. Sprite has a deal with the NBA and during commercials they use NBA MVP.
How is the economy impacted by a drought?
The crops dry up from a lack of water and then there is a deficiency in crops. The farmers lose money too.
What is the Influence of SAARC on Indian Economy?
SAARC countries share same cultural history since centuries. Because India is somewhat peaceful and had a stable political establishment since independence. No two SAARC countries share a boundary and all of them share a boundary with India. India is strong in economic perspective than other SAARC countries so they were not of much help to India.
How did the influence transportation and the economy for horses?
Well ifhorseswere notused the people from the oldern days they would have trouble getting tothe place they need to get.
What was the influence of the war on the Northern economy?
It greatly stimulated it – all kinds of factory goods and farm produce were in urgent request. And unlike the South, the North was able to import and export.
What is the influence of unemployment on national economy?
the situation when people especially in the age group 15-59 years are incapable to find gainful employment is called unemployment.
How did industrilization influence the American economy?
Industrialization impacted the American economy in a multitude of ways. Urbanization occurred due to immigration, when people moved from rural areas in search of sustained employment.
How do federal agencies influence the economy?
They require funding from tax revenue to provide things such as lawenforcement and office personnel for agencies.
What social influence does McDonalds have on the economy?
McDonald’s has many social impacts on the economy. Some of thepositive ones are job creation, food on the go for working parentsand moderately cheap prices. Some of the negative impacts on theeconomy are a rise in health care costs, an increase of the gapbetween classes and higher costs to counteract the pollution causedby the transportation and maintenance of ingredients.
What influence did the war have on the economy of Europe?
World War Two ruined the economy of Europe. The Marshall Plan wassetup in order to help rebuild Europe.
What influence did industralization have on the global economy?
Industrialization had a major influence on the global economy. For onething, countries were able to increase business with developedcountries overseas. Shipping costs went down and permitted businessesto import more of the raw materials they needed.