This is the fifth in a series of articles on causes, effects and fixes for current global recession. This particular article focuses on great depression. Compares the current economic and financial situation with 1930s and points out the similarities and differences.
This is the third in a series of articles on economic recessions and depression, their causes, consequences and fixes. This particular articles focuses on president Hoover’s volunteerism. Sounds like a great idea, but, seriously failed in practical world. Does it mean that government and private sector partnerships never work?
This is second in a series of articles on historical analysis of causes, consequences and fixes for recessions and depression, a frequent happening in Capitalist economies. This particular article analyses thirty first U.S. president Herbert Hoover. Great depression hit us during his presidency and his reforms to fix it are largely considered as failures.
It is now a historically proven fact that depressions and recessions are regular happenings in capitalist economies, including U.S. economy. In this series, we are going to examine the causes of various recessions and depressions, their consequences and fixes that worked, keeping politics and ideology aside.
In many ways, the period of economic recovery that follows a recession is an often unsure and frustrating time. This is in part due to media coverage and its emphasis on sensationalism, where every single optimistic portent is heralded and perceived as a huge step towards prosperity. This creates an unrealistic expectation amongst society concerning unemployment trends and personal finances, as individuals seek a quick and effective resolution to economic hardship and periods of fiscal difficulty.
The fact remains however that while the are undoubted reasons for economic optimism for the forthcoming year, there is an inherent misunderstanding of financial reporting and the core processes of an economy. This is what causes many individuals to misunderstand the portents and indicators that are presented by media resources, and subsequently develop disappointment and frustration as the economy does not display the rate of growth that is anticipated.
Understanding the Numbers and Economic Cycles
The main issue facing society is the representation and usage of statistics and figures. While it is easy to adopt a piece of numerical data to argue a point or economic trend, it can often be contracting or negated by another piece of information within a related field. As an example, it was proudly proclaimed that unemployment rates in the US dropped by 0.4 percent at the end of 2010, and this figure was indeed reflective of a positive trend. However, this rate was inclusive of individuals who had simply stopped seeking employment or claiming welfare, so the actual number of those who had sourced work was less than initially perceived.
