2007-08-13 07:42:33 · 6 answers · asked by Jennifer 2 in Social Science ➔ Economics
None. The most important safeguard against the next Great Depression is the Federal Reserve.
2007-08-13 10:57:18 · answer #1 · answered by NC 7 · 0⤊ 0⤋
EPOS (electronic point of sale) is a computer system used by companies like WalMart, it enables them to keep track of all sales so that they can re-order correctly. This also enables these companies to see which goods are not selling well, and therefore lower their prices.
This means that as demand falls, prices can be quickly decreased, and therefore roughly the same quantity of goods will be sold. With the same amount of products being bought production needn't decrease, and jobs will not be lost.
The same level of production (and therefore GDP) and the same amount of jobs (and unemployment) means there should never be another depression in the USA, there will be recessions, but hopefully, not depressions.
Without this EPOS system, prices can remain high for much longer periods of time before managers take action, this means that there will be fewer sales, so fewer products will be re-ordered by the retailer. With less products ordered, suppliers may lay off workers in order to remain in business. This decrease in production and increase in unemployment may lead to a depression.
2007-08-15 15:20:39 · answer #2 · answered by Ashley 5 · 0⤊ 0⤋
After the stock market crash of 1929 (which led to the great depression) the US government put into place a number of policies and programs to limit the economic impact of a stock market crash.
These include the FDIC (protection for bank depositors) and limiting the amount of stocks that can be purchased on margin (i.e. credit)
2007-08-13 16:22:47 · answer #3 · answered by pk 4 · 0⤊ 0⤋
the free market economy will correct before the country falls into depression or hyper-inflation if it is allowed to. The problem occurs when (trying to do good) governments intervene and normally make the situation worse by not allowing the correction.
2007-08-13 15:22:37 · answer #4 · answered by haggismoffat 5 · 0⤊ 0⤋
None. Boom and bust is the plannned financial cycle for the entire world. No "program" will stop another depression.
2007-08-13 14:54:19 · answer #5 · answered by Anonymous · 2⤊ 2⤋
Communism. Then the state would take care of you.
2007-08-13 14:47:25 · answer #6 · answered by theonewhoknows 2 · 0⤊ 4⤋