Do you know the greatest reason of the triumph of capitalism? It is the intrinsic dynamism of the system that helps the entire concept to come up again and again, no matter what. This is certainly not the first time when the global financial system is facing a massive downturn. Take for instance the Great Depression. It was a worldwide economic downturn that started in 1929 and ended at different times in the 1930s or early 1940s for different countries. This was the largest and most important economic depression in modern history. However United States of America has faced same debacles again. These include the periods between January-July 1980 and July 1981-November 1982, July 1990-March 1991, March 2001-November 2001. But at each time the market rose again thanks to its own vigor.
For that reason many are hopeful that US will become successful to contain the ongoing economic crisis too. However it seems, from the current statistics, that the US economy needs more time to tackle the ongoing economic meltdown. The most prominent reason behind this supposition has been the recent falls in the standard of measurement of U.S. nonresidential construction activity. What was the level of decline? It can be said, in short, that it was the lowest in its 13-year history. The monthly Architecture Billings Index, compiled by the American Institute of Architects, slipped 1.5 points to 34.7 in November, down from 36.2 in October. According to the insiders, many factors are responsible behind this decline. These include sinking tax revenues, tight credit markets and a crumbling economy.
It has also been learnt from the Architecture Billings Index (ABI) that the reading below 50 points towards the grave declension or deterioration in demand for the services of the design firms in construction activities of various forms. This also indicates that the weakness in nonresidential construction will extend well into 2009.
Long struggles are lying ahead and US have to remain steadfast in order to overcome them.
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