A Worldwide Economic Depression
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The paper describes how many American colleges have had to close because their endowment funds were wiped out, community banks have failed, wiping out people's life savings, and even those with assets have stopped spending any money except for absolute necessities, since inflation is so high. The paper then relates that inflation and corporate insolvency has virtually eliminated any type of financial credit and a barter system has evolved whereby people trade goods and services. The paper also reveals how businesses have folded, police departments have stopped using patrol cars and have laid off the majority of their officers, and the fire department is made up of mainly volunteers. The writer thinks this depression may reverse the dominant patterns of consumerism when many goods and services fulfilled little genuine need, but appealed instead to the impulse to display one's wealth or status.
From the Paper:"In our family, life has changed dramatically. I should be finishing up my freshman year of college right about now, but in the year since the Dow Jones plummeted below 4000 points, many American colleges had to close because their endowment funds were entirely wiped out. The few that remained open at all now have a very high acceptance rate of nearly one-hundred percent, simply because there are so few students whose families can afford approximately $1,000,000 annual tuition.
"Many community banks have failed, wiping out people's life savings because they were not insured by the Federal Deposit Insurance Corporation (FDIC). Larger banks have also failed wiping even many of the wealthiest people's life savings if they had them all in any one institution, since the FDIC guaranteed only their first $250,000 on deposit. Therefore, of the (already) few people who were wealthy enough to have a net worth in the millions, only those who spread their savings into many smaller accounts at FDIC-insured banking institutions still have any substantial financial assets. Generally, even they stopped spending any money except for absolute necessities, since inflation is so high that one could easily spend millions on nothing besides ordinary consumer and household goods."
Cite this Creative Essay:
A Worldwide Economic Depression (2011, November 16) Retrieved October 04, 2022, from https://www.academon.com/creative-essay/a-worldwide-economic-depression-148960/
"A Worldwide Economic Depression" 16 November 2011. Web. 04 October. 2022. <https://www.academon.com/creative-essay/a-worldwide-economic-depression-148960/>