2. Warnings
• Economists understood that the economy works in
cycles, but few except socialists like Marx believed
that these cycles could put the economic system
itself at risk
• After the Industrial Revolution, the world had been
accelerating financially, and increasing Globalization
was putting countries in charge of the other’s risks
• During the great depression, technology did not
slump nor did economic growth related to it, but
rather slowed down radically as technological
prowess continued to accelerate
3. Recovering
• During the Great Depression, most countries did not yet have
a welfare system; In fact, welfare state was a term that wasn’t
used until 1940
• Working people’s biggest concern was their children finding
meager but steady and reliable jobs
• The lack of strategy for recovery from economic distress
contributed to the severity of the slump. In response, the
USA, Britain, and Canada all abandoned the gold standard,
and Britain did away with free trade. Many governments
raised tariffs
