From the times of Great depression to current scenario, there have been numerous effects of economic depressions, no matter what their magnitude have been. Interestingly, while some effects have been bad, some have been good too. You might wonder how it is possible. Then the following information would really be worth grasping.
While any depression in US economy brings a bad news around the globe, still it allows us to learn. On one side, so many businesses try their best to come out of the depression and try making some gains by cutting down on the number of employees and their wages, the brighter side to this includes new ways to tackle such problems. Of course, the pace is much slower, but economies, when jolted, try their best to stand again and work harder to gain what they have already lost.
A bad effect is that those with great credit histories till date, face problems in repaying installments of their loans, leading to a huge number of repossessions by banks. Trouble increases because world economy slows down due to lack of monetary fuel in it.
A good effect, however, is that when people see others losing their jobs during the time of depression, they either try very hard to save their jobs or start saving their hard earned money. They would be highly concerned about using their earnings and savings judiciously and once out of such times, they will tend to invest for the long term to tackle any such situation in future.
One effect on the brighter side is creations of alliances that work nationally. Government increases its scope to the economic and social affairs and the everyday life of people. To add to this, various alliances for poor, intellectuals, farmers, minorities, black and other religious and ethnic groups surface and they work as the backbone of governments. Reformations and growth are put to full swing and this leads to a strengthened bond between people and government, even if at a slow pace.
No doubt economic depression has severe and a huge effect on economies, governments as well as common people, it still offers us some hope to eradicate the possible causes and avoid such a time in future. Furthermore, it is an indirect way of tackling some of the long-prevalent problems of societies. After all, there is a brighter side to everything!