The global economic crisis is becoming an increasingly relevant issue in this modern era. The main causes of this crisis involve many interrelated factors, including economic policies, market fluctuations, and environmental changes. One significant cause is recurrent financial crises, often triggered by excessive speculation in the stock and real estate markets. This market instability creates shocks that can spread throughout the world, affecting overall economic growth. Apart from that, unwise political decisions, such as protectionism and strict trade policies, also contributed to the global economic crisis. When countries try to protect domestic industries, trade wars often result. A clear example is the tension between the United States and China, which adds uncertainty for multinational companies. Unbalanced monetary policy, including interest rates that are too low or too high, also disrupts economic stability. The impact of the global economic crisis is very broad and detrimental. Economic growth is slowing in many countries, resulting in rising unemployment rates. Job loss has a direct impact on people’s purchasing power. Many families were forced to reduce spending, which in turn slowed further economic growth. Economic instability also exacerbates social inequality, where marginalized groups become more vulnerable. In the financial sector, banks and other financial institutions often have to bear the consequences of this crisis. Many suffered huge losses due to bad loans and failed speculation. Investor confidence also decreased, causing the market to become increasingly depressed. This has an effect on currency exchange rates becoming unstable, so investors prefer to store assets in the form of gold or stable currencies such as the US dollar. The global environment is also affected by the economic crisis. Investment in sustainable projects is often cut short, given the urgent need to stabilize the economy. This could slow down sustainability initiatives that are critical to the future of the planet. Sectors such as renewable energy and green technology feel the negative impact when funds are allocated to economic stabilization rather than innovation. In a social context, an economic crisis can cause increased social dissatisfaction and tension. Protests and social movements often emerge as a response to government policies that are considered unfair. This dissatisfaction, if not handled well, could result in wider unrest, worsening an already difficult economic situation. The global economic crisis requires international collaboration to address the root causes and impacts. Countries must invest in economies based on sustainability and inclusiveness. Strengthening the global financial system and cooperation in the field of trade are also key to preventing a recurrence of the crisis in the future. Society, business and government need to unite to restore trust and build the foundations of a stronger and more resilient economy.
