From economic boom to depression

Lucrare de licenta despre From economic boom to depression
The first economic boom in the United States was experienced during the late 1990’s and into the new millennium highlighted by rapid economic and the growth of productivity.

After this boom many observers concluded that a „new era” has arrived, but the real economic growth average was ended in March 2000, after five years of increasing for almost four percent annually, compared to the last 20 years when the growth was of about three percent per year.

During the nine quarters following March 2000, the U.S economy fell into recession for the first time in 10 years and the annualized rate of real economic growth during those nine quarters was deducted at 1.4 percent.

The prices fell at a 21 percent compounded annual rate and also collapsed business investment (high technology and telecommunications) and corporate profitability. The huge debt loads were taken on by optimistic entrepreneurs and established firms alike that became crushing burdens unsupportable by dwindling revenues.

The economic and financial vital signs of the U.S. economy remained unusually fragile during the middle of 2002 despite of the abrupt shift toward simulative fiscal and monetary policies.

Now, after this spill, the question remains whether the boom will resume quickly after the current interruption, and the corporate profitability, business investment, productivity growth and the stock market will pick up from where they were left before recession or if the Federal Reserve’s prestige can survive the collapse of the 1990’s boom.

Lucrare de licenta despre From economic boom to depression

Lucrare de licenta despre From economic boom to depression
Contents

Introduction.............................................5
I. A Short Economic History of the U.S.A.: Riding the Rollercoaster?
1.1. The New Nation’s Economy.........................6
1.1.1. Movement south and Westward.....................7
1.1.2. Industrial growth...............................9
1.1.3. Inventions, Development and Tycoons............10
1.2. Government involvement..........................10
1.3. The Postwar Economy.............................11
1.3.1. 1945- 1960......................................11
1.3.2. Years of Chance: 1960s and 1970s................13

II. Causes of Economic Depression in U.S.A. and the World
2.1. What caused the Old U.S. Depression?...............15
2.2. What caused the Modern U.S. Depression?............15
2.2.1. The International Depression.....................16
2.2.2. The Main Areas of Depression.....................17
2.2.3. New Interventionist Policies.....................18
2.2.4. Political Implications...........................18
2.2.5. The Collapse of World Trade......................19

III. The Most Affected sectors of the Economy
3.1.Tourism.............................................21
3.2. Mining and Petroleum...............................23
3.3. Manufacturing .....................................24
3.4.AutoIndustry........................................26
3.5. Construction.......................................28
3.6. Infrastructure.....................................29

IV. The World’s Economic Powers Propose Solutions
4.1. Measures for redressing tourism....................31
4.1.1. Promotions.......................................31
4.1.2. Review of Government.............................32
4.1.3. Other Recommandations............................32
4.2. Measures for Mining and Petroleum..................33
4.3. Measures for redressing Manufacturing..............34
4.4. Measures for redressing Auto Industry..............35
4.5. Measures for redressing Construction...............36
4.5.1. Public Expenditure...............................37
4.5.2. Financing........................................37
4.5.3. Cutting Costs....................................38
4.5.4. Increasing Utilization of Materials and Equipment...38
4.5.5. Assisting Local Contractors..............38
4.5.6. Priority to Local Workers and Services...........39
4.5.7. Sale and Conversion of Heavy Machinery...........40
4.6. Measures for redressing Infrastructure.............40
4.6.1. Ports....................41
4.6.2. Airports.........................................42
4.6.3. Rail.............................................43
4.6.4. Roads............................................44
4.6.5. Water............................................45
4.6.6. Sewerage.........................................46
4.6.7. Electricity......................................47

Conclusion..............................................48
Anexe...................................................50
References..............................................54