HI125 Lecture Notes - Lecture 19: Financial Statement, Economic Stagnation, Industrial Revolution
Document Summary
Economic stagnation and periodic recessions: postwar economic growth comes to an end, uncertainty in how to continue and maintain economic growth, severe recessions every 10 so years, high unemployment and high inflation. Increased international competition: stores and companies going into americana and british markets, businesses realize that they need to continue to improve or they will lose their market share. British and american business showing signs of weakness 1970s 1980s. Leads to restructuring and changes in government intervention. Both economic recover economic strength by late 1990s. Severe recession in early 1980s: challenged by milton friedman (reading, economists are arguing that too much government in the economy is bad. Creating problems for businesses and the economy: challenging traditional approaches by the government, addressing not just the demand side but also the supply side, achieve not full employment like what keynes suggested. Unfavorable balance of trade denoting competitive problems. Problems of management: poor decision making in maintaining efficiency of production obsolescence.
