What is an economic collapse?

Economic collapse is a situation where a local, regional or national economy undergoes a dramatic decline that negatively affects the ability of people living in this area to maintain a fair standard or life. In economic collapse, the main industries often often fail, jobs are lost and one -off income almost does not exist. Usually, even after the economy begins to recover from economic collapse, this recovery may take years to complete, leaving consumers persistent problems for a longer period of time. Although it is sometimes considered a crisis of capitalism, economic collapse may also occur when the economy is controlled by the state.

The great depression of the early 20th century is often cited as an event that showed all the names of classical economic collapse. Starting with the collapse of the stock market in the United States in 1929, this era was earmarked by the closure of many companies and mass unemployment. As a result, many people have lost their homey or was unable to feed their family. The recovery has been increasing for 30 years, although many economists believe that the United States was fully recovered until the nation entered World War II, the situation that placed the country to experience an economic boom because the industry increased to a level beyond the previously supposed.

Similarly, the economic collapse of the Russian Federation at the end of the 20th century also led to a lengthy recovery period. Reduced production in combination with low oil prices has created a crisis because the nation adapted to the changes that occurred after the Cold War. Only with oil prices and other internal adjustments began to move the nation from collapse and to a prosperous economy.

Recently, the worldwide recesses in 2007 brought the conditions associated with economic collapse. In countries around the world, the crisis has undermined the main investmentMarkets, while unemployment increased significantly. As a result, people started to fail on their debts, including mortgages, car loans and credit cards. By 2010, many nations entered the recovery period, while unemployment slowed in at least a few countries and the failure on banking loans began to stabilize and even in some places.

While economic collapse can be a national or global crisis, it is also possible for the city or region to experience this type of economic conversion. This phenomenon was observed during the middle of the 20th century in many cities in the American South, where textile plants were the main source of employment in the community. Since the production of various textile products was externally entered into cheaper devices outside the United States, local plants at first reduced the operations back and finally closed. Over time, many of these former mill cities have grown other forms of industry and were able to stabilize the local economy. Others do not have toIt fully recover and continue to experience population decreases because citizens move to other areas with more promising economic opportunities.