Tuesday, October 20, 2015

Unemployment

         As you may know, this past week has been a week of turmoil and torment for countless people all around the world as the stock markets dipped down dramatically. From America to China, people's stocks started dropping at the start of the week. In China, it was especially bad because usually the Chinese government steps and closes the market down if there is a major dip in that day's stocks. This time though, the Chinese government did not step in to close the market causing many countries' stocks to dip 5-6 percent which doesn't seem too big for us but, for stock brokers and hedge funders is huge because that could be a loss in the millions for them.
         This is similar to the stock market crash in 1929 and caused what we now know as the Great Depression. The US stock market crashed caused the world economy to dip dramatically. The US was lending money to many nations such as France and Germany to boost their economy but as soon as the US economy dipped, they wanted their money back which caused foreign countries' economy to drop. The US then had a 25% unemployment rate which compared to today, is almost five times higher and people still consider our unemployment rate high.

1 comment:

  1. Alan, Some interesting topics thus far but only 4 posts. (Talk about unemployment!). This post concerns a very important topic, but you do not cite a source, so it's not clear what conversation you hope to join. Quoting would also give you some text to analyze and positions to dispute or extend. Also, why no pix? That's a real strength of this medium.

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