Strengths And Weaknesses Of The Economic Crisis

714 Words3 Pages
The second World War broke out and once again military engineering triggered the much need economic growth. During the war the American economy seemed to breathe fresh air. Suddenly there were opportunities everywhere. The country began to use this war as a catalyst to gear up the industry. The unemployed got inducted in the defence services. The governments’ subsidized wage program also gave renewed impetus to the factories. The factories in turn generated employment. Military engineering also propelled the economy with new growth arenas. New shipyards, bus services and emergence of new electronic factories suddenly seem to bring in the lost glory to the US economy. Gradually the cloud Depression was no longer over the American sky and the…show more content…
There is a science to it. There are many reasons one may attribute to this. One of them is that after falling into the crisis the weaknesses of the economy gets exposed. These weaknesses may or may not be the reasons for the emanated crisis but surly they now grab the eyeballs. Due to the crisis the policy reforms get speeded up and measures are taken to tackle the weakness. In situations where financial deficit take place austerity measures work. These measures have great impact as the spending of the government reduces the fiscal deficit to huge extent. This is what the Greece policy reforms are working at. During crisis, the measures aim to immediate relief and also long term solutions to current problems. This kind of strategy has a great impact. To provide immediate relief some stress is put on the economy but the long term now looks safe. In the long run when the economy recovers the stress is relieved. This kind of policy reforms was used in America in the last recession. The idea was to print money and inject them into the economy to boost spending; when the economy would recover the policy would be to draw the excess money. The idea here was not a defensive move but more of an aggressive policy reform. It has been seen throughout history that protectionist attitude leads to aggregating the crisis and taking it into deeper zones of trouble while aggressive reforms boost the recovery process. There is a saying- ‘Fortune favours the brave”. Here it holds
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