The current economy of United States is facing a huge decline and experiencing worst period of economic failure, hence in great depression. These turn downs have created terrifying situations. People are left with joblessness, companies went bankrupt, plants and industrial units are put down, stock market has dropped down, oil and real estate prices plunged. This complex environment lead decrement in consumer expenditures and mounted alarming conditions for business and industrialization.

The panic grows in such an extent that it affects the whole world negatively. It made financial conditions of the country to fall into recession. The stock market crashed and the entire banking system was in bang and ceased by presidential orders for four days.

Now investigating the root causes involved in the slump, reveal roles of many hands behind the scene. Economists believe that lots of wrong government involvement is the basis of such collapse. They suppose that free market is not in any way responsible for these breakdowns. Some consider that not only government is accountable for that cause, there were even no proper regulation and supervision regarding free markets and its procedures. Economists also blame careless businessmen liable for such disasters.

Various attempts and strategies are made by capitalists to bring back the lost profit and increased productivity to previous higher levels. The prime issue faced by the economy is inflation rate which caused wages to reduce. Companies in U.S have led their workers to either accept lower wages or just to leave their jobs away. A common strategy adopted by enterprises is to increase the cut off in grants and other benefits like health insurance and retirement pensions. Employees are bound to suffer huge deductions in their salaries. These situations enabled them to work until old ages ceasing the chance for young employees to pursue jobs. Another wide spread approach put into practice by organizations is to enforce workers to speed up. As faster and harder the jobs, the more rate of profit achieved. It increases the intensity of labor and built competence among themselves to sustain the limited job offer.

Another current policy that put into practice is to use bankruptcy as a tool to cut wages and benefits. Companies announce bankruptcy so that they carry on their operations and renegotiate their debts. In this way they declare their mergers null and void. An example of such planning is the union of steel industry with airline industry in 1990s. Airline companies in America are partly bankrupted which enabled them to make sheer cut down in employee’s wages.

There are other more tactics used by enterprises to amplify the rate of profits. But it causes loads of distress to many workers. It has turned down standard of living. Unemployment and inflation is erupted intolerably. It has blown up stress and insecurity for general public. These entire situations give birth to an era where blue collar workers in United States are no more among the middle class.