The full extent will only become obvious in the years to come. But if we want to avoid future deep financial meltdowns of this or even greater magnitude, we must address the root causes. In my estimation two critical and related factors created the current crisis.
You can help by adding to it. April Marxists generally argue that the Great Depression was the result of the inherent instability of the capitalist model. Oil prices reached their all-time low in the early s as production began from the East Texas Oil Fieldthe largest field ever found in the lower 48 states.
With the oil market oversupplied prices locally fell to below ten cents per barrel. Electrification and mass production techniques such as Fordism permanently lowered the demand for labor relative to economic output.
Filene were among prominent businessmen who were concerned with overproduction and underconsumption. Ford doubled wages of his workers in The over-production problem was also discussed in Congress, with Senator Reed Smoot proposing an import tariff, which became the Smoot—Hawley Tariff Act.
The Smoot—Hawley Tariff was enacted in June, The tariff was misguided because the U. These trends are in nowise the result of the present depression, nor are they the result of the World War. On the contrary, the present depression is a collapse resulting from these long-term trends.
King Hubbert  In the book Mechanization in Industry, whose publication was sponsored by the National Bureau of Economic Research, Jerome noted that whether mechanization tends to increase output or displace labor depends on the elasticity of demand for the product.
It was further noted that agriculture was adversely affected by the reduced need for animal feed as horses and mules were displaced by inanimate sources of power following WW I.
As a related point, Jerome also notes that the term " technological unemployment " was being used to describe the labor situation during the depression. Wells,  The dramatic rise in productivity of major industries in the U.
This decision was made to cut the production of goods because of the amount of products that were not being sold. Farmers were forced off the land, further adding to the excess labor supply. Agricultural productivity resulting from tractors, fertilizers and hybrid corn was only part of the problem; the other problem was the change over from horses and mules to internal combustion transportation.
The horse and mule population began declining after WW 1, freeing up enormous quantities of land previously used for animal feed.
Most of the benefit of the increased productivity went into profits, which went into the stock market bubble rather than into consumer purchases. Thus workers did not have enough income to absorb the large amount of capacity that had been added. It was argued that government should intervene by an increased taxation of the rich to help make income more equal.
With the increased revenue the government could create public works to increase employment and 'kick start' the economy. In the USA the economic policies had been quite the opposite until The Revenue Act of and public works programmes introduced in Hoover's last year as president and taken up by Roosevelt, created some redistribution of purchasing power.
Americans looked towards insubstantial banking units for their own liquidity supply. As the economy began to fail, these banks were no longer able to support those who depended on their assets — they did not hold as much power as the larger banks.
During the depression, "three waves of bank failures shook the economy. The second wave of bank failures occurred "after the Federal Reserve System raised the rediscount rate to staunch an outflow of gold"  around the end of The last wave, which began in the middle ofwas the worst and most devastating, continuing "almost to the point of a total breakdown of the banking system in the winter of —Depression and anxiety are now at epidemic levels.
Why? Across the world, scientists have uncovered evidence for nine different causes. Some are in our biology – but most are in the way we are living today. The International Financial Crisis Started with Losses in the US Housing Market: There is general agreement that the US housing bubble was the proximate cause for the most severe financial crisis (in the US) since the Great Depression.
This crisis has spread to other parts of the world, if for no other reason than the huge size of the American economy. Spiritual Depression: Its Causes and Its Cure [David Martyn Lloyd-Jones] on initiativeblog.com *FREE* shipping on qualifying offers.
This enduring collection of twenty-one sermons by D. Martyn Lloyd-Jones, each originally delivered at Westminster Chapel in London. Yahoo Lifestyle is your source for style, beauty, and wellness, including health, inspiring stories, and the latest fashion trends.
A study explores loss and recovery of mammal phylogenetic diversity (PD) during the current mass extinction, and finds that restoring all of the PD lost since the .
The Great Depression () was the deepest and longest-lasting economic downturn in the history of the Western industrialized world. In the United States, the Great Depression began soon after the stock market crash of October.