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ArbitrLikvidat [17]
3 years ago
10

What are some of the reasons that a traditional economy can lead to the economic stagnation?

History
2 answers:
eduard3 years ago
4 0
Because traditional economies are characterized as being primarily agricultural, they are prone to stagnation since they rely heavily on weather, which can be unpredictable and pragmatic.
dangina [55]3 years ago
4 0

I believe the answer is: It tends to discourage new ideas & new ways of doing things, it leads to lack of progress

Traditional economy often very reliant on culture and heavily criticise new methods or inventions that creative people try to implement.

When a region with traditional economy compete with region with modern economy compete, region with traditional economy often unable to beat their competitors in terms of output, complexity , and time efficiency.

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New Deal is the name given by the president of the United States Franklin D. Roosevelt to his interventionist policy put in place to fight against the effects of the Great Depression in the United States. This program was developed between 1933 and 1938 with the objective of supporting the poorest layers of the population, reforming financial markets and revitalizing a wounded American economy since the crash of 1929 due to unemployment and bankruptcies.

Commonly, two New Deals are distinguished. A first, particularly marked by the "One Hundred Days of Roosevelt" in 1933, which pointed to an improvement in the situation in the short term. You can find, then, bank reform laws, urgent social assistance programs, help programs for work, or even agricultural programs. The Government made important investments and allowed access to financial resources through the various government agencies. The economic results were moderate, but the situation improved. The "Second New Deal" was extended between 1935 and 1938, putting forward a new distribution of resources and power on a broader scale, with trade union protection laws, the Social Security Act, as well as aid programs for farmers. and street workers.

The fight against the crisis lasted until the United States mobilized its economy with the Second World War. The success of the New Deal is undeniable on the social level. The policy led by President Franklin D. Roosevelt changed the country through reforms and not through a revolution. On the other hand, the New Deal programs were openly experimental, manifestly perfectible, and given the costs of this process, a more complete change program could have been preferred. However, the imperfect nature of the New Deal allowed a constructive criticism and a more deliberate reflection that opened the way to an improvement of American democracy in the following years and which lasts until today. In union matters, the adoption of the so-called Wagner Act allowed unions to become powerful collectives.

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