Wednesday, February 26, 2020
Capitalism Assignment Example | Topics and Well Written Essays - 1500 words
Capitalism - Assignment Example Various companies reduced their labour force while others fully shut down leading to massive loss of employment. The economic depression led to loss of business and closing down of many businesses, which led to decline in tax revenues. Many organizations and individuals were also unable to pay their taxes, which made things worse. Prices of goods and services also declined, and profits not witnessed. Crop production fell with most farms affected by drought, which saw the fall in crop prices. The hardships witnessed and non-remittance of taxes forced people out of their homes creating a situation of homelessness. Situation of unemployment and homelessness seriously affected the poor in the society. The economic activities in many countries were markedly affected with many sectors facing problems. Construction industry in many countries slowed and even stopped owing to materials and labor force needed. Farming in a rural setting was also affected by drought and financial inability. Farmers were not able to pay off debt accrued from production expenses due to poor production and fall in crop prices. Among the sectors affected is the mining and logging sectors, which faced drastic, negative effects due to decline in demand for its products, most were forced to cut down on their activities with others closing up, which further affected unemployment. The ending of the great depression was witnessed by different countries at different times, but it was with the advent of WWII. There is believe that government spending in the war stimulated the economies of various nations. The war required production of various products to be used in the war and agricultural goods to be consumed. The sourcing of labor to participate in the war aided in solving the unemployment problem. Women and men who did not participate in the war also got the opportunity to work in the local industries (Maddison, 2007).