Economic Depression And Employment In Globalized Era, With Special Reference To India

Abstract

Economic depression is a down turn of substantial proportions in the economy of a nation that may last for year. Typically during economic depression the Gross Domestic Product (GDP) falls and unemployment rises. During economic depression business find it difficult to make profits compelling them to reduce salaries and staff. This causes unemployment to rise. Defaults in loan repayment become common lending to increasing home repossession many flow comes down. Economic depression also witnesses crises in commerce, industry and finance with step fall in prices, credit squeeze, low productivity, vanishing investment and increasing bankruptcies. With the collapse of Lehman Brothers and other Wall Street icons; there was growing recession which affected the U.S., the European Union (EU) and Japan. This was the result of large scale defaults in the US housing market as the bank went on providing risky loans without adequate security and the repaying capacity of borrower. The principle source of transmission of the crisis has been the real sector, generally referred to as the ‘Main Street’. This crisis engulfed the united state in the form of creeping recession and this worsened the situation. As consequence US demand for important from other countries indicated a decline.

Keywords- Economic Depression,  Employment In Globalized Era,  Special Reference To India