TERM PAPER: DOT.COM BUBBLE vs RAILWAY MANIA
INTRODUCTION
Our world has suffered numerous economic crisis ever since we had a concept of money. One may argue that economic crisis and economic growth go hand-in-hand. A very frequent source of economic crisis are speculative bubbles which essentially tailspin our economy into a euphoric state. They fill our investors with irrational exuberance, and coax them to go on an expensive investing spree. This goes on until the speculative behaviour flings our society into a deep recession. Despite this, a bubble is a painful yet essential part of the economy. Essential because speculative bubbles have had a big hand in commercializing many revolutionary technologies. In fact, two of our greatest inventions, the railway network and the internet, were brought upon by this very phenomenon, in the form of the Railway mania and the dotcom bubble.
There are many similarities between the Railway mania and the internet bubble, especially in their progression, technological revolution, and political significance. For one, both bubbles progressed in similar ways during their respective timelines. Also, they …show more content…
The railway and internet bubbles made a lot of advancements making life for everyone easier. As stated before, shipping of goods was made much faster thanks to the railway boom of the 1840s. This boosted the economy of that time a great deal and made many new jobs including general labour and railway engineers. Similarly, the dotcom bubble created e-commerce, which made shopping a very quicker, simpler, and cheaper affair. People today can get clothes, cosmetics, electronics, and even groceries delivered right at their door step at a click of the mouse. Also, don’t forget that e-commerce created a lot of jobs courtesy of companies like UPS, FedEx, Canada Post, Amazon, Alibaba
INTRODUCTION
Our world has suffered numerous economic crisis ever since we had a concept of money. One may argue that economic crisis and economic growth go hand-in-hand. A very frequent source of economic crisis are speculative bubbles which essentially tailspin our economy into a euphoric state. They fill our investors with irrational exuberance, and coax them to go on an expensive investing spree. This goes on until the speculative behaviour flings our society into a deep recession. Despite this, a bubble is a painful yet essential part of the economy. Essential because speculative bubbles have had a big hand in commercializing many revolutionary technologies. In fact, two of our greatest inventions, the railway network and the internet, were brought upon by this very phenomenon, in the form of the Railway mania and the dotcom bubble.
There are many similarities between the Railway mania and the internet bubble, especially in their progression, technological revolution, and political significance. For one, both bubbles progressed in similar ways during their respective timelines. Also, they …show more content…
The railway and internet bubbles made a lot of advancements making life for everyone easier. As stated before, shipping of goods was made much faster thanks to the railway boom of the 1840s. This boosted the economy of that time a great deal and made many new jobs including general labour and railway engineers. Similarly, the dotcom bubble created e-commerce, which made shopping a very quicker, simpler, and cheaper affair. People today can get clothes, cosmetics, electronics, and even groceries delivered right at their door step at a click of the mouse. Also, don’t forget that e-commerce created a lot of jobs courtesy of companies like UPS, FedEx, Canada Post, Amazon, Alibaba