Wednesday, September 25, 2019
Economics USA Essay Example | Topics and Well Written Essays - 500 words
Economics USA - Essay Example If markets are doing well in some part of the world it reflects in other parts of the world. Precisely if the market goes down it results in a ripple effect that brings down most of the markets in the world. It was believed that when a commodity was produced there would be demand for the product. But the whole scenario of the market changed upside down, markets crashing; unemployment was increasing, rise in inflation, prices were falling and eventually factories being closed. It was believed that markets correct themselves but it was proven wrong by the great depression. Maynard Keynes's theory hold good, according to his theory fall in investment spending might result in fall in consumption spending. US economy is the world's largest and powerful economy, a slight change in its markets would result in a ripple effect throughout the world markets. The US has proven itself as the land of opportunities for many people around the globe. Like many of the economies the US has seen the Booms and Busts of the markets that brought happiness in good times and sorrow in bad times. In 1920's the US went through the great depression and slowly and steadily markets stabilized and experts called this as the Business Cycle. In late 1990's due to the Bubble Burst the markets crashed and in consequent years it bounced back.