The Great Crash of 1929 led the World into a precipitating economic spiral for ten years. This calamitous decade is known as The Great Depression. The United States had never endured such a detrimental stock market crash as it did in 1929. Unemployment rates rose to unprecedented levels, crime rates skyrocketed and production plummeted. The Great Crash did not only impact the United States, but all western industrialised countries experienced the economic turmoil. This was due to their trade links with the United States being interrupted.
South Africa’s current economic situation is one that can be compared to that of the United States in the Great Depression. In the 1930s, the United States experienced towering unemployment rates. This …show more content…
The problem that South Africa faces is that it lacks high-skilled workers. So in order to tackle this pressing issue, the investment should be used to advance the skills of our current labour force. In other words, schools, colleges and universities should provide regular workshops for teaching staff in order to improve their skills. Teaching assessments should be carried out regularly to ensure that teachers and lecturers are implementing their skills effectively in the classroom. If the standard of education improves, more students will stand a chance of meeting the requirements of higher educational institutes. The short run consequences of implementing this policy is that there will be less money available to invest in other areas such as infrastructure, transport and healthcare. Aggregate demand will possibly fall and generate a decrease in consumer expenditure. In the long run however, the supply of skilled workers will increase and this will fill a vital gap of unemployment that South Africa gravely seeks. Furthermore, the number of skilled workers generated will compensate for the short term consequences of the investment. In other words, the Okun gap caused by the investment will be fixed by the increase in skilled workers. This is because the Rand value of lost GDP will be revived by the services and goods produced by the skilled
South Africa’s current economic situation is one that can be compared to that of the United States in the Great Depression. In the 1930s, the United States experienced towering unemployment rates. This …show more content…
The problem that South Africa faces is that it lacks high-skilled workers. So in order to tackle this pressing issue, the investment should be used to advance the skills of our current labour force. In other words, schools, colleges and universities should provide regular workshops for teaching staff in order to improve their skills. Teaching assessments should be carried out regularly to ensure that teachers and lecturers are implementing their skills effectively in the classroom. If the standard of education improves, more students will stand a chance of meeting the requirements of higher educational institutes. The short run consequences of implementing this policy is that there will be less money available to invest in other areas such as infrastructure, transport and healthcare. Aggregate demand will possibly fall and generate a decrease in consumer expenditure. In the long run however, the supply of skilled workers will increase and this will fill a vital gap of unemployment that South Africa gravely seeks. Furthermore, the number of skilled workers generated will compensate for the short term consequences of the investment. In other words, the Okun gap caused by the investment will be fixed by the increase in skilled workers. This is because the Rand value of lost GDP will be revived by the services and goods produced by the skilled