Economic Depression

Introduction

According to the survey, American people spend significantly more time and money carelessly than their European counterparts. People in the lowest fifth are spending about twice as much as they earn. There is a disconnection between earning and spending money that creates a problem later when there is suddenly a need for monetary responsibility (Davis, 89).

Loss of jobs reveal the threat of an economic depression

American People use to spend more money, as there are many living expenses and other useless activities as well. The process of money spending is very serious and for Americans this process is uncontrollable. The people have non serious attitude to the money spending and are not accurate with this process. There are number of Americans who spend the money on useless things and buy the goods which they do not really need. The reason of these people to spend the money is just a process.

Economic ups and downs are natural phenomena. The usual force driving economy is psychology of the masses (Brown, 70). Their mentality is produced by complex interactions between beliefs and behaviors of individuals. Because of traumatic childhood experiences in most people, the society consists of many subjects with damage to their brains and mental functions. Instead of using advanced intelligence and working toward a common social good, the majority of people default to animal-like mentality and only care about themselves (Bernanke, 20). A related problem is that most people want to enrich themselves to a maximum extent. They ignore the impacts of their behaviors on the future and tend to live beyond their means. When such social mentality persists for a while, it leads to unsustainable economic demands, and a downturn of such a lifestyle becomes inevitable. This is why most economies do not have steady trends, but exhibit fluctuations. These corrective ups and downs are usually mild. By contrast, the present economic crisis is occurring worldwide and is deep because of global economy.

The loss is widespread and absolute. In previous downturns, people could find lower paying jobs, but the current economy has no jobs, not even manual labor (Ambrosius, 50). People who are still employed are forced to work harder to keep their jobs. Most employed Americans had low savings before the crisis began, and now are living from paycheck to paycheck. One hiccup can send many a family on the street with no way of surviving. People who lost jobs only recently still collect unemployment benefits, but these will expire one day. There will be no jobs waiting (Davis, 99). The crisis is deepening; more businesses are closing, and additional people are finding themselves unemployed. Meanwhile, the news media are urging people to keep looking for jobs. One day, there will be a job opening, is the common theme. In reality, roughly 10% of the American workforce are unemployed or stopped looking for jobs. A small fraction of the 10% may find jobs, but most people will stay without jobs and will be unable to support themselves (Bernanke, ...