First is the Poor Organization of American Corporations. Whereas companies invest in one
another such as for example Goodyear has invested their money in the company of Ford Motor,
but there is also what we call a “Domino effect” in which when one fails, it takes others with it. It
can also be more modernized by explaining how most individuals invest their money in stock
market or cryptocurrencies.
Second is the Unregulated Speculation wherein individuals purchases stock in other companies,
but cannot purchase the full price. You simply buy on margin , 10% down and hope to pay other
90% from dividends. An example to this is a purchase of 10% on the stock, but to thought of paying
the other 90% in which for the succeeding number of months the dividend check that you’ll be
receiving from them can be used to pay for your stock until there is no dividends left. But in all of
a sudden it will cause you into a big debt as tons of your money will be gone once the companies
fold, leaving you with a debt of 90%.
Third is the Government’s Failure to Regulate Business whereas there is nothing getting
enforced against big businesses. This can also be called as the “Maldistribution of wealth” wherein
some people have a lot more, some have a lot less. As the rich businessmen earns and profits more,
poor employees are doing worse as the wages are not rising leading to their inability to sustain
their necessities. In addition, those businesses are suddenly forced to reduce staff if you are unable
to afford the goods. Nothing is being purchased by them. Further, fewer people are purchasing
their products will force them to eventually close.
Fourth is the Poor Banking Methods whereas individuals don’t separate there investing money
from their saving money. All of these businesses are receiving investments from banks so they can
continue growing. Loans are how banks generate revenue. Thus, banks are giving all of these
companies loans. In which when the business faced bankruptcy, everything including your savings
money will be gone. There is no federal deposit insurance corporation, meaning nothing will be
left with you.
Lastly, Farmers are neglected. They commonly receive just a little help from the government. If
you're a farmer, you shouldn't have any help. You're on your own. You don't need loans. You don't
need subsidies. So that one could be able to be independently purchasing whatever it needs to
produce and earn. But then when farmers overproduce, it results to the sudden drop in the prices.
Take note that production is correlated with consumption meaning there should be no surplus of
supplies that could lessen the value of something.