Eonomists fear that another depression will soon rob the whole world forever.Is it for real or just a hoax?
2006-08-29 02:02:06 · 10 answers · asked by jnr. boy 1 in Social Science ➔ Economics
The possibility of a depression cannot be dismissed out of hand. Just look at what has been happening in Japan in 1990s. This said, the extent of pain a depression would cause, should it occur, would be nowhere near that observed in 1930s or 1870s. Again, the Japanese experience of 1990s is very instructive here...
2006-08-29 05:44:50 · answer #1 · answered by NC 7 · 0⤊ 0⤋
Well Ashwin, just remember that the Great Depresssion of 1929 was caused, in the short term, by over-production. There are two schools of thought on this topic.
WIth the world getting richer (though not equally), people are having more money to spend, and therefore are able to buy more products. This would lead to over-production (though not on the scale of 1929) and therefore markets would observe a heavy fall if not a crash which would have severe consequences though nowhere near as bad as those of 1929.
The other school of thought is that with the developments in technology arriving at such a pace, however rich people are, they will not be able to outpace the production of new products and therefore such a dramatic crash as that witnessed in 1929 - or even in 1987 - is impossible.
However, with tensions at immeasurable in heights in the Middle-East, South America, and even in the far-east, prices of goods that are invaluable - eg. oil - will sore and because the demand is so great they will be bought. This will do good for the economies of many countries and so the stock market will experience a successful time. However with military action likely in many areas, oil may be cut off and economies would be severely limited in acting to their full capacities Furthermore, with only 40 years or so of oil left, the economy of the world is on a time bomb. Find another source of energy (oil not only powers cars, it powers production and provides fuel for the economy itself) or be left to deal woth the effects left by the absence of oilthat will be felt in the next 30 years.
In the next 20 years or so though, it is proberbly safe to say that a Great Depression is unexpected, given that most economies are not in danger of over-production or even being over-confident.
Due to the fact that economies in many countries are doing so well at the moment (look at the SENSEX), a slight dip may be felt over issues like oil and higher military tensions, but as to your concerns over a Great Depression, I'm sure the world is safe from a crash and depression like that felt in the 1930s.
2006-08-29 02:28:46 · answer #2 · answered by Anonymous · 1⤊ 1⤋
I think so, the elements for a really big one are present. Inflation is entering into the economy, huge debt in government and the population; technology is making many upheavals in the work force; wealth is concentrated to a very low percentage of the population; resources on a global scale are stretched. Yes, I'd say it's inevitable. Hey, it's only money though; as long as you have your health and a sense of humour you'll be fine!
2006-08-29 02:11:23 · answer #3 · answered by Anonymous · 1⤊ 0⤋
I think it's entirely possible. As society becomes more advanced and complex, it becomes more fragile.
Due to Global Warming, the weather patterns are changing and if a major drouth hit all of the world's crop producing areas, you could have a sceanario such as is happening in Africa now.
A major, world wide famine and lack of potable water could bring civilization crashing down as people turn from trivial pursuits and lofty sounding ideals to just trying to put some food in their stomachs and a safe roof over their heads.
It was famine that ended the Anasazi and Chaco Canyon civilizations... it was famine that nearly destroyed Europe on numerous occasions and it has been famine that is changing the face and politics of Africa.... and, it's going to happen again... it's inevitable.
2006-08-29 02:07:45 · answer #4 · answered by Anonymous · 1⤊ 1⤋
I don't think one is on the forefront.
Always remember, though, that such a thing is possible. We went from the peak of the Roman Empire to about 1,000 years of the Middle Ages.
Society always tends toward advance, although it is not always linear.
2006-08-29 02:43:41 · answer #5 · answered by intelbarn 3 · 0⤊ 0⤋
I haven't got out of the last one
2006-08-29 02:32:58 · answer #6 · answered by Anonymous · 0⤊ 0⤋
We're in the middle of it.
2006-08-29 02:11:19 · answer #7 · answered by Anonymous · 1⤊ 0⤋
no more depressions. we have prozac now.
2006-08-29 02:07:10 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Please wait whilst I consult the Oracle of Delphi.
2006-08-29 02:07:13 · answer #9 · answered by Here's Danny 2 · 0⤊ 0⤋
damn not again :(
2006-08-29 04:03:19 · answer #10 · answered by mortal_sinner 3 · 0⤊ 0⤋