to manage their assets and oversee their lending practices properly
Decreased consumer confidence due to economic uncertainty
Slowdown in the housing market
Decrease in business investment
High levels of inflation and interest rates
so whats the answer?
Multiple factors contributed to the recession in the United States in the early 1990s, including increasing oil prices, rising consumer debt, the failure of banks and savings and loans to manage their assets properly, decreased consumer confidence, slowdown in the housing market, decrease in business investment, and high levels of inflation and interest rates. These factors combined to create a challenging economic environment that led to the recession.
did higher minimum wage?
It is debated among economists whether the increase in the minimum wage during the early 1990s directly contributed to the recession. Some argue that a higher minimum wage could have negatively impacted businesses, leading to job losses and reduced economic activity. However, others contend that the effects of the minimum wage increase were minimal compared to other factors such as the failure of banks and the general economic conditions at the time. So while the higher minimum wage may have played a role to some extent, it was likely not a major contributing factor to the recession in the early 1990s.
