The decline in wages and the increase in the number of unemployed people have become serious economic problems that we have to face at the moment. To better understand this phenomenon, let's go back to that painful and thought-provoking moment in history – the Great Depression, and consider our current economic situation through the study of its root causes.
The Great Depression occurred in the early 30s of the last century, originated in the United States, and quickly spread around the world. During those gloomy years, many families faced unprecedented challenges, with shrinking wages and large numbers of people unemployed. Let's take a look back at that painful time.
Root cause: Collapse detonates crisis.
It all started on October 24, 1929, the day known as "Black Thursday". The U.S. had experienced a frenzy in the first few months, but with the collapse of investor confidence and the over-indebtedness of margin trading, it began to show a trend of collapse. On that day, New York*** sparked a rush of investors to sell** and the market crashed.
Bad chain reaction: the economic crisis is in full swing.
* The collapse was just the tip of the iceberg, and the chain reaction that followed threw the entire economic system into chaos. Bank failures, corporate bankruptcies, commodities *** all this has pushed the U.S. and global economy to the brink of collapse. Factories are closing, unemployment is soaring, and thousands of families are falling into poverty. People are reduced to long queues, eager to find a job that will support their families. However, wages continue to fall and living conditions are becoming more and more difficult.
* Intervention: The New Deal instills hope in the economy.
At a critical moment when the economy was on the brink, the United States took a series of interventions to try to save the economy and bring new hope to the people. The New Deal, led by Roosevelt, became a turning point in history. Through the establishment of programs such as the Public Works Program and the Agricultural Adjustment Act, jobs have been created and people's lives have been improved.
Historical Reflections: Lessons from the Economic Crisis for the Present.
The Great Depression taught us a profound lesson. First of all, excessive speculation and lack of regulation can easily lead to financial crises. Therefore, stabilizing the financial market and strengthening supervision are important measures to prevent crises. Second, intervention in times of crisis is crucial. **Active fiscal and monetary policies are needed to energize the economy and stabilize employment and wages. Finally, we should pay attention to the sustainable development of the economy and avoid relying on a single industry or relying too much on foreign markets. Diversifying the economic structure and improving the ability of local technological innovation can enhance the country's ability to resist economic risks.
The Great Depression in history was a deplorable event that caused great suffering to people. However, it is in this predicament that people have gradually come out of the haze and ushered in new hope through active response and intervention. Today, we live in a rapidly changing social and economic environment. Looking back at history, we should learn from the Great Recession, stick to the path of stable development, and work to build a more prosperous, just and sustainable socio-economic system. Let us believe that no matter what kind of difficulties we encounter, as long as we unite and work hard and uphold an optimistic attitude, we can get out of the haze and usher in a better future!