Economic Fails - A thorn in the flesh of nations

Introduction

Economic failure or collapse has been a pivotal moment in the financial landscape globally. Just like a broken and collapse home will always cause the member of that family pain and agony so do economic collapse shape the trajectories of nations and negatively affect the lives of millions of people. No country prays for economic fails but unfortunately due to corruption champion by headless and selfish leaders we see some economy failing.

When I say that economic fails is a thorn in the flesh of nations I mean that there is a persistent or troublesome issues, which most times is a source of discomfort or challenge, affecting multiple nations.

When I say that economic fails is a thorn in the flesh of nations, it means that there is a persistent or troublesome issues, which most times is a source of discomfort or challenge, affecting multiple nations.

This article will focus mainly on some economic fails. It is also explained some of the causes of some of these fail. Kindly stay with me as I pilot this bot of knowledge.
Understanding the definition of economic fails will really go a long way in helping us understand this topic better. Now what is economic fails.

What is Economic Fails or Collapse?

Economic Fails or collapse encompass a spectrum of of events. Here is how Wikipedia defines it.

Economic fails or collapse, also called economic meltdown, is any of a broad range of bad economic conditions, ranging from a severe, prolonged depression with high bankruptcy rates and high unemployment (such as the Great Depression of the 1930s), to a breakdown in normal commerce caused by hyperinflation (such as in Weimar Germany in the 1920s), or even an economically caused sharp rise in the death rate and perhaps even a decline in population (such as in countries of the former USSR in the 1990s).[1][2][3] Often economic collapse is accompanied by social chaos, civil unrest and a breakdown of law and order.

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Economic fails or collapse has a prolong implications on nations. It affects the unemployment rate, increase poverty rate and also negatively affect the overall well being of every citizen. Just like what I said in the beginning of this post.

Economic fails or collapse can be liken to alarms that ring loudly, which helps us pay close attention to how our nation is being run. When these collapse happen, it's a sign for nations to look closely at the rules and plans they have for their economy. They can make better laws, restructuring their country and helping it wake up again.

Studying about these failures, will help us figure out what's wrong with our economy and help us to find ways to make our economies stronger and better for the future.
Let's look at some of examples of economic fails.

Examples of Economic Fails

There are many examples of economic fails but we will only look at a few of them.

The 2008 Financial Crisis

In 2008 there was a big financial crisis which affect many people mostly in America. This crisis started when a big American global financial services firm called Leman Brothers went bankrupt.
According to my research one of the factors which contribute to this problem is related to home loans.
People were give loans to buy cars, house and other stuffs. But unfortunately most of these people couldn't pay the loans back.

This cause a severe economic collapse which affected not only the company but also everyone. According to Wikipedia

The bankruptcy of Lehman Brothers on September 15, 2008, was the climax of the subprime mortgage crisis. After the financial services firm was notified of a pending credit downgrade due to its heavy position in subprime mortgages, the Federal Reserve summoned several banks to negotiate financing for its reorganization. These discussions failed, and Lehman filed a Chapter 11 petition that remains the largest bankruptcy filing in U.S. history, involving more than US$600 billion in assets.
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This wasn't an easy situation for the firm.This example of Leman Brothers always remains us that when people take big risks with money and when the rules overseeing these money activities aren't strong enough, it can lead to economic fails or collapse.
This is knew example of economic fails. Now let talk about one more example.

The Covid-19 Pandemic

At the end of 2019 and the beginning of 2023 we see a health challenge that caused world economy to collapse. It was an easy time for nations as everyone was struggling with his or her life. This triggered profound economic repercussions worldwide. There where lockdown in every country and this disrupted supply chain and consumer where to able to spend much again. Many countries reserves were going down and this led to a global recession.

According to research the world GDP(Gross Domestic Product) fall by 3.4 percent. The Covid-19 Pandemic caused the sharpest downtown in the world's economy.

In conclusion, economic fails has cause a whole lot of challenges for nations and most times has claim millions of lives. Analysing past crisis can help us discern pattern and also identify the root cause of the problem so as to better handle such crisis and avoid economic downturns.

Credit

Thumbnail gotten from Pixabay

Second picture gotten from Pixabay

Third picture gotten from Pixabay

Posted Using InLeo Alpha

Posted Using InLeo Alpha