Impacts of Global Financial Crisis

Impacts of Global Financial Crisis

Impacts of Global Financial Crisis - In the recent one hundred years, several financial crises broke out. Some of them were serious and some of them were minor. However, all of them have giant impacts on every aspect of our life especially, social stability, living standard and economy.

The first financial crisis can trace back to 1929 in American. It was the longest and worst one in the capital society. This crisis leaded to the production decline greatly, which is unprecedented. The actual volumes of the international trade fell down at the first time in history. What's worse, this financial disaster brought out giant losses. For many countries such as American, Germany and England, their economic level fell back four years or more than four years.

If we can not feel the destructive impacts from the distant crisis in history, another global crisis erupted several years ago must have a fearful expression on all of us. Additionally, fears from this global financial crisis still not have an end.

This global crisis also came from American due to its debits. However, American dollars as the world economical status made this crisis expanded all over the world quickly. The cause of this crisis could attribute to the housing bubble, American habit of consuming. Certainly, the uneven and unhealthy economical development was the direct factors that cause this crisis.

No matter where and when these crises happened, to some degree, they brought huge influences to the whole world. During the global financial crisis, the rate of divorce and unemployment went up. Instead, the living standard and consumption level went down. Thousands of graduates stayed at home instead of hunting for a job.

Although China was not attacked so heavily by this financial crisis, the overseas provinces such as Zhejiang and Guangzhou were destroyed more seriously. Because these provinces mainly engage in export products. When the overseas markets sank into predicament, the volume of export followed. When financial crisis broke out, many middle and small companies bankrupted, especially those industries that need a lot of labors. Therefore, a lot of migrants were unemployed. Most of the bankrupted companies are small size enterprises without abundant capital.