depression

Depression

It is the most dreaded economic setback that is feared by many individuals. It affects businesses, and as a result many workers lose their jobs. A depression can hit an industry,a region, a nation, or the world. A depression might develop if sales drop in a number of stores. Because of the fall in sales, the stores order less merchandise from manufacturers. The manufacturers, in turn, lower production, cut orders from suppliers, and invest less money in new equipment and factories. As sales drop, prices tend to fall, further reducing business income. Employers lay off workers as business income falls. Bankruptcies may follow.

Depressions hurt great numbers of people, especially workers who lose their jobs. Bank failures wipe out the savings of depositors if such funds are not insured. Many people lose their homes because they cannot meet rent or mortgage payments. Many feel angry or humiliated because they cannot support themselves, and have to live through charity just to survive. Even though depression can inflict suffering upon the larger percentage of the population some people still profit from it. Society suffers as a depression spreads mass unemployment, poverty, and despair. It can also change certain beliefs. It can cause some individuals to distrust business, and lose faith in their system of government. They may easily be led to believe any leader who promises change. It has produced some of the worlds most brutal dictators which include Ad...

depression

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