What Caused the Global Economic Crisis ?
The previous article in the module introduced the global economic crisis with a brief overview of the causes. This article looks at the causes of the global economic crisis in depth.
For starters, the global economic crisis carries a distinct Made in the USA tag which means that the origins of the crisis are to found in the reckless lending and risky banking practices of Wall Street.
To sum up, there was a convergence of different forces (economic, social and political) which resulted in a perfect storm of economic and social calamity. Hopefully, the crisis should serve as a warning to policymakers to promote sustainable business practices and for individuals and families to not live beyond their means.
The bottom line for any debt based economic system is that one can only postpone the day of reckoning but cannot go on forever in the expectation that the debts would not come due.
In conclusion, this article provided a detailed description of the factors that caused the global economic crisis and the subsequent articles would look at the various casual factors along with some recommendations on how to resolve the crisis.
Related Articles
- What is Globalization ?
- The Global Economic Crisis
- Introduction to the Global Economy
- Impact of Global Economic Crisis
- Globalization - A Win-Win Situation

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