Is the World Heading for a Global Recession
First of all, I would like to explain what global recession means and what were the same recessions in our history? Global recession is the sharp deterioration of economic health of the countries, namely: a plummet of manufacturing, bankruptcy of enterprises, a big rise of of unemployment and finally - the decrease in the standard of living, well-being of the population (Economic dictionary). According to standard economic theory, economic system has the cyclic form and to avoid crisis it is impossible. World financial crisis and then an economic crisis will result of decrease in world gross national product, falling of a standard of living in the majority of the countries including in developed and also global chaos and depression.
The world history has had the three biggest collapses. The first world recession was in 1900 – 1903. It was a small collapse when manufacturing fall down by 2.3%, Russia had the biggest damage, because economic crisis has coincided with a poor harvest. The second world recession was in 1907, when a manufacturing fell down by 5%. The biggest damages had the “United States of America (15%)” (Pelaez 15) and “Great Britain (6%)”(Blakey 29). Finally, the most famous collapse was in 1920 as a consequence of the First World War (time of military conversion). It was a period when the second economic part passed in to the third. It was a time of “Great depression” when on 29 October 1929 (day of “Black Thursday”) shares tumbled and damage was over “$10 billion , 30 million unemployed, the United States of America did not give credits to Germany, Germany stopped pay reparations, Great Brittan and France stopped to repay”(History ).
Let`s look at present economic situation and find preconditions of the world recession. Economic scientist from all over the world are predicting fourth recession and giving dates “2020-2030” (Yerokhina 3). But the world recession is a long process and gives fix date of start and end – silly, we will understand
The world history has had the three biggest collapses. The first world recession was in 1900 – 1903. It was a small collapse when manufacturing fall down by 2.3%, Russia had the biggest damage, because economic crisis has coincided with a poor harvest. The second world recession was in 1907, when a manufacturing fell down by 5%. The biggest damages had the “United States of America (15%)” (Pelaez 15) and “Great Britain (6%)”(Blakey 29). Finally, the most famous collapse was in 1920 as a consequence of the First World War (time of military conversion). It was a period when the second economic part passed in to the third. It was a time of “Great depression” when on 29 October 1929 (day of “Black Thursday”) shares tumbled and damage was over “$10 billion , 30 million unemployed, the United States of America did not give credits to Germany, Germany stopped pay reparations, Great Brittan and France stopped to repay”(History ).
Let`s look at present economic situation and find preconditions of the world recession. Economic scientist from all over the world are predicting fourth recession and giving dates “2020-2030” (Yerokhina 3). But the world recession is a long process and gives fix date of start and end – silly, we will understand
Citations: 1. Black, John. A Dictionary of Economics. Oxford: Oxford University Press, Aug. 2003. 2. Blakey, George. A History of the London Stock Market 1945-2007. 5th edition. Petersfield, 25 Feb. 2008. 3. Cassara Amy and Christian Layke. Tomorrow 's Markets. New York: World Resources Institute, 2002. 4. Erochina, Elena. The theory of economic development Aug. 2003 <http://orel.rsl.ru/nettext/economic/erohina/index.html> 5. Gallatin, James. The National Debt, Taxation, Currency and Banking System of the USA. New York: Kessinger Publishing, Oct.2007. 6. Pelaez ,Carlos M. and Carlos A. Pelaez. Global Recession Risk Apr. 2007 7. “History” RBC.RU <http://www.rbc.ru/historic.htmlx> 6 Mar. 2008. 8. “Warren Buffett declares America in recession” TIMESONLINE.CO.UK 3 Mar.2008. 9 Mar 2008 <http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3476265.ece>. 9. “We are waiting for global recession” ZAVTRA.COM 31 aug. 2007. 8 Mar. 2008 <http://www.zavtra.com.ua/news/mir/22682/>