Economy

Corona crisis

Russian war

• Worlds largest national economy and leading global trader

• Mine raw materials: cotton, gold, gas, medical Instruments/ import technical equipment, cars, computers,

• Government doesn’t involve, no social security system

• Lower taxes

• Rely on yourself

• Night-watchman state = provides citizens with military, police, court = protecting from theft, fraud, aggression - enforcing property laws

New inventions

Too many products, prices went down

The recession was characterised by the extreme deflation - 18%

• Great Depression: 25%

• Corona Crisis: 20%

• Great Depression: no immediate stimulus

• Corona Crisis: stimulus, FED, security system for banks

• Great Depression: a decade; downward spiral; rise in nationalism

• Corona Crisis: temporary, pent up-demand; forced shutdown; rise in nationalism, extremism

• Great Depression: new deal - Roosevelt = “social security system“

• Corona Crisis: Trump, didn’t support the states, stoped PED payment to the WHO

Consumers buy, what business is selling

C. Hold on to their cash

Prices will be cheaper

C. Spend money because prices will rise tomorrow

Stable 2%

Unemployment rate

Economic stimulus

Duration

(Effect on the politics)

Relief measures

Describes a rapid increase in demand for service or products, usually following a period of subdued spending

Consumers tend to hold off, making purchases during a recession, building up a backlog of demand that is unleashed when signs of recovery emerge

Aimed at promoting economic recovery, and putting Americans back to work through federal activism

New Federal agencies attempted to control agricultural production, stabilize wages and prices, and create a vast public works program for the unemployed