Studied this in school, but didn't ask this question then.. I know safe guards are in place, but would they work today. Could it happen again to us. No jobs, soup lines, families camping following what jobs there were. My great grandma was little when it was going on, she still remember how hard it was on her family.
2007-05-27 05:33:19 · 6 answers · asked by smwbugging 2 in Arts & Humanities ➔ History
Unequivocally absolutely NO, a '30s type of Depression is not feasible in today's world.
Two reasons: The stock market is what triggered the Big Depression in the '30s. There are too many checks and balances today on our capital markets and economic theory and governance knowledge to allow a recurrence.
Second, the US economy is globally linked to other national economies. The leading national economies, second tier economies, and developing economies are tightly coupled today in many ways. All of the "first world" economies (Europe, China, Russia, Brazil, Australia, etc.) partner to prevent such depressions from happening.
Is a Depression possible? Yes, but it would not be a '30s style Depression. The catastrophic economic problems of the '30's could happen again but only as a result of a nuclear winter and/or the flow of petroleum to the G8 Nations being completely cut-off from the middle east.
(Note: these are macro economic points, not political points.)
2007-05-27 08:17:28 · answer #1 · answered by angelthe5th 4 · 0⤊ 0⤋
There will regularly be common upswings and downturns within the financial system...it is a reality of loose marketplace. Without executive involvement, we might finally pop out of the present recession. The handiest approach that I feel executive must be worried is to ease the weight on taxpayers to take a look at to develop spending. Basically, supplying help to the unemployed, supplying tax incentives that inspire spending, and supplying different help wherein wanted. The handiest approach the present recession goes to finish is that if men and women begin spending and making an investment once more. "Stimulus applications" are not anything greater than a bandage. You can throw billions of bucks at a corporation, but when the traders pull out and purchasers aren't shopping, then the kit will eventually fail.
2016-09-05 13:38:44 · answer #2 · answered by ? 4 · 0⤊ 0⤋
History shows that a global depression results from a simultaneous monetary contraction in all of the major economic centers. The gold standard, combined with investor panic, produced such a simultaneous contraction. Fortunately, we no longer have an international gold standard today. There is no reason why the major economies -- the U.S., the Euro countries, Britain, Japan -- should simultaneously tighten their monetary policies. It is conceivable that they would do so in a mistaken fit of financial orthodoxy. But there is no compelling reason for the world’s leading central banks to behave in such a manner.
More specifically, one key to overcoming the current financial turmoil, and to avoiding a much worse crisis, is a shift in monetary policies in the leading countries towards greater monetary expansion. For the past year, the International Monetary Fund has been preaching monetary stringency to the developing world. The result, predictably, has been severe economic contraction.
2007-05-27 06:53:22 · answer #3 · answered by FIGJAM 6 · 0⤊ 1⤋
Over the last five years I had begun to have increasingly withdraw into a downward spiral of depression..
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Helping you eliminate depression?
2016-05-16 00:29:19 · answer #4 · answered by ? 4 · 0⤊ 0⤋
YES - there is so much ignorance and the "safeguards" have been left lax. Q:How many people under the age of 30 know how to cook, sew and plant their own food? A-Less that 15% That being considered if the economy were to collapse - a very real possibility given the current state of banks - there would be a huge number of people unable to care for themselves.
2007-05-27 05:41:44 · answer #5 · answered by Walking on Sunshine 7 · 0⤊ 1⤋
yes the way the country is going we are in for a big shock if we dont pull our heads out of our butts we will be in the same statw we where 70 years ago. and if we keep throwing away and the cooking and cleaning and sewing we are totaly screwed
2007-05-27 06:00:34 · answer #6 · answered by danial m 1 · 0⤊ 1⤋