Global financial crisis- why has that caused a massive increase in unemployment rates?

With the credit markets being bottle-necked, there is no ability to expand and gap deficits.



When you can't expand and/or gap operating deficits, you can't meet demand or likewise create it.



There may be demand, but without credit, there is no ability to acquire without cash and cash must go necessaries.



Since there's no cash, businesses lay people off to meet overhead. Eventually businesses downsize and then they either stay in business or liquidate.



Well layoffs, downsizing and liquidation cause unemployment.



Those unemployed are not consuming, so therefore not spending.



There it is in a really small nutshell.Global financial crisis- why has that caused a massive increase in unemployment rates?
governments have put their fingers in the pie and now people do not have enough to buy things. Businesses have been taxed to extinction. If only " save the taxpayer" had as much traction as " save the whales".
Because when people don't have money they can't spend money. When companies don't make money they can't pay money. Therefore they need to cut until they can sustain.. sometimes they go bankrupt.Global financial crisis- why has that caused a massive increase in unemployment rates?
loss of confidence in the ecomony ---%26gt; reduced demand for goods ---%26gt; reduced supply of goods ---%26gt; companies suffer losses ---%26gt; reduced demand in workforce ---%26gt; increased unemployment rate.
Unemployment numbers always go up under a Democrat President. Wanna know why that is?



See, many people who become unemployed will stay that way for about two to three weeks, until they find another job. It may not be the job they always dreamed of, but at least they're EMPLOYED. Others become unemployed and stay that way indefinitely, or at least until the unemployment benefits run out given the methods in their particular area.



Under a Republican President, those people are not counted as unemployed. Only those who have been on unemployment benefits are counted. Under a Democrat President, those who leap between jobs are quickly counted and added to the number, just as a scare tactic and something to point at as to how bad things are and that without government assistance, we're all screwed.



The honeymoon's over. America lost; get over it.Global financial crisis- why has that caused a massive increase in unemployment rates?
Overinestment lead to oversupply or people living beyond there means. So demand eventually could not eat all that was being produced hurting corporate profits. With a paucity of demand further productivity became unecessary meaning that jobs were slashed