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By Selenne Sevilla / Staff Writer
Foreclosure (Paul Ledesma / Staff Photographer)
By Selenne Sevilla / Staff Writer
A new study from researchers at Jay W. Forrester’s institute at Massachusetts institute of technology has recently predicted that the next great depression is set to occur in the year 2030.
“The world could suffer from a global economic collapse … (and) precipitous population decline if people continue to consume the world’s resources at the current pace,” the research study said.
This prediction can be more accurate than people hope it to be because of the direction the economy is heading now.
Most people don’t realize how many resources we all use and how easily our only resources could disappear.
As the population continues to increase so does the demand for resources, but resources in this economy are either limited or much too expensive.
Since population growth is outsourcing the world’s resources, the prediction of a second great depression is hardly surprising.
Half the world is already falling into economic depression rather rapidly.
“The world is on track for disaster,” said Australian physicist Graham Turner.
A great depression prediction can be very accurate because the U.S., being one of the nation’s biggest countries, is already in economic crisis.
Globalization’s effect has already increased in America due to companies having to cut their work force by moving their companies overseas so they can pay their workers less.
If jobs are being outsourced what jobs will be available to the people of the United States?
Thousands of Americans have already lost their jobs in the last few years and have yet to find a new source of work.
As a result, the demand for goods is decreasing. People do not have money to buy non-essentials because they are more concerned about paying for necessary living expenses that can become reposed at any given time.
As the demand for products goes down, so does the economy, causing more job loss and panic.
If unemployment numbers like the recent ones continue to increase, the accuracy of this prediction will become very true, and it may come sooner than the original prediction.
In a recent newspaper, “Depression is on the way,” released in 2008, a source says that Steve Keen, professor of economics at the University of Western Sydney, has been warning of a global financial crisis for almost three years.
And now that Wall Street is in meltdown, stock markets around the world are tumbling, and banks collapsing, his views are gaining credibility.
Given that an economics professor believes global financial crisis is on the way, this prediction should not be ignored.
Wall Street, the world’s largest stock exchange market, is in fact in meltdown.
Wall Street is not the only large stock market of the world. Therefore, this suggests the debt has already begun to take its course and can lead to further exchange meltdowns and could even lead to the stock markets crashing.
An article, “Top 5 causes of the Great Depression” by Martin Kelly, was published in order to help people understand what factors led to the Great Depression.
“Two months after the original crash in October, stockholders had lost more than $40 billion dollars.
Even though the stock market began to regain some of its losses, by the end of 1930, it just was not enough and America truly entered what is called the Great Depression” Martin Kelly said.
This is frightening because we are already in a recession with many ups and downs. What if there just isn’t enough money and resources to keep our economy afloat?
With these facts one can see that if a stock market crash is to happen in the United States again, people will be faced with a new, possibly more severe, great depression.
Stock markets are a main source for America’s income, along with the banks.
Unfortunately, banks are also beginning to collapse. Banks are not receiving enough payments and are therefore unsure about their economic stability. This has been causing banks to refrain from giving people loans and increase the amount of foreclosures on homes and businesses.
Because banks are refraining from giving out loans, people have no way of making payments for things like houses and cars. Their last source of income has been taken.
Banks and large companies are beginning to file for bankruptcy because they cannot repay debts owed to creditors due to of lack of income.
Because of many bankruptcy requests and other factors, struggling Americans are beginning to fear the prediction of the great depression may be frighteningly accurate.
Sources are pointing out that the United States and the global economy altogether are in a financial crisis that is not getting better.
If America does not resolve these issues rapidly, the world could be in for a rude awakening.
