What is econmic meltdown?

Answer 1

An economic meltdown refers to a severe and rapid decline in economic activity, often characterized by a collapse in financial markets, widespread bankruptcies, and significant unemployment. It can result from various factors, including unsustainable debt levels, speculative bubbles, poor economic policies, or external shocks. The consequences typically include a loss of consumer and business confidence, reduced investment, and a lengthy recovery period. Historical examples include the Great Depression of the 1930s and the 2008 financial crisis.